15 unchanged sentences
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 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, including as a result of the current U.S.
+Added: 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;
• the level and volatility of prevailing interest rates and credit spreads;
37 unchanged sentences
mortgage market.
−Removed: Our strategy is to make credit-sensitive investments primarily in newly-originated first lien non-QM loans that are primarily made to higher-quality non-QM loan borrowers and substantially 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.
+Added: 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.
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.
8 unchanged sentences
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: Angel Oak Companies has advised us that they have agreed to enter into a strategic transaction (the “Strategic Transaction”) with Brookfield Asset Management Ltd.
+Added: 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”).
+Added: 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.
(“Brookfield”).
−Removed: Angel Oak Companies has advised us that the Strategic Transaction would result in the current beneficial owners of Angel Oak Companies selling approximately 51% of the outstanding beneficial ownership of Angel Oak Companies, and indirectly our Manager, to Brookfield at closing.
−Removed: Angel Oak Companies has advised us that following the closing of the Strategic Transaction, the existing Angel Oak Companies management team will continue to independently manage the day-to-day business of Angel Oak Companies and our Manager, and will control the board of directors of Angel Oak Companies.
−Removed: Angel Oak Companies has advised us that the Strategic Transaction is not intended to result in any material changes to the investment objectives or strategies of the Company, nor to adjust the investment decision-making processes or portfolio management with respect to the Company.
−Removed: Angel Oak Companies has advised us that the personnel, officers and managers of our Manager are expected to remain the same.
−Removed: Angel Oak Companies has advised us that, as part of the Strategic Transaction, Brookfield will have a 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.
−Removed: Angel Oak Companies has advised us that the Strategic Transaction is expected to close in the third quarter of 2025, subject to the satisfaction of customary closing conditions, including the receipt of certain regulatory clearances and required client consents.
−Removed: Under the Management Agreement, the Strategic Transaction would constitute an assignment of the Management Agreement pursuant to which the Management Agreement automatically terminates without payment of a termination fee unless the assignment is consented to in writing by the Company with the consent of a majority of the Company’s independent directors.
−Removed: For a discussion of certain risks related to our relationship with our Manager, see the information under Item 1A.
−Removed: “Risk Factors—Risks Related to Our Relationship with Our Manager and its Affiliates” in the Annual Report on Form 10-K.
+Added: 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.
We have elected to be taxed as a REIT for U.S.
7 unchanged sentences
Overall macroeconomic environment and its effect on us
−Removed: The second quarter of 2025 began with “Liberation Day”, on which significant tariff increases were announced on goods imported into the United States.
−Removed: This announcement sparked sharp selloffs in both equity and fixed income markets, as the potential increases in the costs of many goods drove renewed concern around increases in inflation.
−Removed: Temporary pauses to the tariff increases were announced shortly after Liberation Day, and the extent to which the originally announced tariffs will be enacted remains uncertain.
−Removed: The selloff associated with the original Liberation Day announcement moderated throughout the remainder of the second quarter, and equity markets finished the quarter in positive territory as of June 30, 2025 compared to March 31, 2025.
−Removed: Despite the uncertainty, securitization markets remained stable and constructive throughout the quarter.
−Removed: Inflation slowed in April and May 2025 before increasing from 2.4% in May to 2.7% in June, likely reflecting the impact of announced tariffs.
−Removed: The Federal Reserve Bank (“Fed”) maintained its wait-and-see approach and held interest rates steady at 4.25 - 4.50% through the second quarter of 2025.
−Removed: Current projections are for the Fed to begin cutting interest rates in 2025, though the timing and extent remains uncertain.
−Removed: Similar to the moderation in equity markets following the initial reaction to Liberation Day, Treasury yields experienced decreases across two and five-year terms, with a slight increase to the ten-year yield in the second quarter of 2025.
−Removed: The two-year Treasury yield decreased by approximately 17 basis points since the end of the first quarter of 2025 to 3.72%, the five-year Treasury yield decreased by approximately 15 basis points since the end of first quarter of 2025 to 3.81%, and the ten-year Treasury yield increased by approximately 2 basis points since the end of first quarter of 2025 to 4.23%.
−Removed: Each of the two, five, and ten-year Treasury yields finished the second quarter well below the highest rate observed over the course of the quarter, which occurred in mid-May across all three terms.
−Removed: 30 year fixed residential conforming mortgage rates increased by 12 basis points over the course of the second quarter to 6.77% as of the end of the second quarter from 6.65% as of the end of the first quarter of 2025.
−Removed: These rates, alongside federal funds rate and Treasury yields, are key benchmarks for the valuation of our portfolio, and an increase is generally expected to drive a corresponding negative impact to our newly originated asset pricing, as we observed in the second quarter of 2025.
−Removed: As such, we observed an approximately 53 basis point decrease versus the first quarter of 2025 in the weighted average price of our residential whole loans portfolio excluding home equity lines of credit (“HELOCs”).
−Removed: This decrease was offset by a 136 basis point increase in the second quarter in the weighted average price of our loans in securitization trusts portfolio, which is substantially composed of loans originated in recent years at lower interest rates, versus the prior quarter.
+Added: 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.
+Added: 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.
+Added: Inflation ticked up from 2.7% to 3.0% from June 2025 to September 2025.
+Added: 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.
+Added: 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%.
+Added: The dovish approach was a welcome development for prospective homebuyers, as mortgage rates decreased in line with Fed rate expectations.
+Added: Current projections are for two more interest rate cuts in 2025, though the recent government shutdown has cast uncertainty on the future rate path.
+Added: Securitization markets, in particular, demonstrated resilience with robust activity and a continued tightening of execution spreads.
+Added: As expected, Treasury yields decreased across two, five, and ten-year terms in the third quarter of 2025.
+Added: 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.
+Added: 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.
+Added: 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.
+Added: 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”).
+Added: 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.
We expect to continue to purchase newly originated loans and HELOCs, which should continue to support overall portfolio valuations and securitization execution going forward.
−Removed: Notes offering
−Removed: In May 2025, we closed an underwritten public offering and sale of, and issued, $42.5 million in aggregate principal amount of our 9.750% Senior Notes due 2030 (the “2030 Notes”).
−Removed: The 2030 Notes bear interest at a rate of 9.750% per annum, payable quarterly in arrears on March 1, June 1, September 1, and December 1 of each year, beginning on September 1, 2025.
−Removed: The 2030 Notes will mature on June 1, 2030, unless earlier redeemed or repurchased by us, and are held at amortized cost.
−Removed: After deducting the underwriting discount and other debt issuance costs, we received net proceeds of approximately $40.6 million.
−Removed: We used the majority of the net proceeds from the offering 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.
Our investment performance
Net Interest Margin (“NIM”).
−Removed: We generated a 5% increase in net interest income in the second quarter of 2025 as compared to the second quarter of 2024, supported by the continued acquisition of accretive assets.
−Removed: Compared to the second quarter of 2024, interest income grew by $9.2 million and interest expense grew by $8.7 million, resulting in net interest income growth of $0.5 million in the second quarter of 2025.
+Added: 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.
+Added: 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.
Interest income grew due to the continued acquisition and securitization of current market non-QM loans.
−Removed: The addition of our 2029 Notes and 2030 Notes issued in July 2024 and May 2025, respectively, were key components of the increase to interest expense, and, although there can be no assurances, we expect the deployment of new capital from our 2030 Notes issuance to drive further net interest income expansion in future quarters.
+Added: 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.
Net realized loss .
−Removed: Our net realized loss for the quarter ended June 30, 2025 was primarily due to realized losses associated with the write-off of unamortized premium of loans that paid off in our residential loans in securitization trust portfolio and in loans underlying our RMBS portfolio.
−Removed: Net unrealized loss .
−Removed: Our net unrealized loss for the quarter ended June 30, 2025 was primarily due to the reversal of prior unrealized gains on residential loans that were contributed to securitizations during the quarter.
+Added: 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.
+Added: Note that the previous unrealized loss on these RMBS was greater than the realized loss, indicating an incrementally positive impact to book value.
+Added: Net unrealized gain .
+Added: 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.
Whole loans and securitization activity
−Removed: During the quarter ended June 30, 2025, we purchased $146.6 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 8.68%, weighted average combined loan-to-value ratio (“CLTV”) of 68.4% and weighted average credit score of 757.
−Removed: In April 2025, we issued AOMT 2025-4, a $284.3 million scheduled unpaid principal balance securitization backed by a pool of residential mortgage loans.
−Removed: We issued AOMT 2025-4 as the sole participant in the securitization.
−Removed: We used the proceeds to repay outstanding debt of approximately $242.4 million, and the $24.7 million of cash released was used for new loan purchases and operational purposes.
−Removed: In May 2025, we participated in AOMT 2025-6, an approximately $349.7 million scheduled unpaid principal balance securitization backed by a pool of residential mortgage loans, to which we contributed loans with a scheduled principal balance of $87.2 million.
−Removed: We used the proceeds of the securitization to repay outstanding debt of approximately $73.1 million and retained bonds of $8.1 million.
−Removed: The securitization released $9.2 million of cash, which was used for operational purposes.
−Removed: We participated in this securitization alongside other Angel Oak entities.
+Added: 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.
+Added: 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.
+Added: 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.
+Added: 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: We issued AOMT 2025-10 as the sole contributor in the securitization.
+Added: 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.
Whole loan financing facilities activity
We continuously evaluate our lender base and may enter into new agreements and / or exit agreements as we deem prudent, in accordance with our core financial strategy of purchasing whole loans and financing them until securitized.
−Removed: See “Liquidity and Capital
−Removed: Resources” below for a full description of our financing arrangements.
−Removed: Our total borrowing capacity was $1.1 billion as of June 30, 2025;
−Removed: Highlights of whole loan financing facilities activity over the second quarter of 2025 are as follows:
−Removed: • During the quarter ended June 30, 2025, we maintained the same whole loan financing facility lender base as of December 31, 2024.
−Removed: • During the quarter ended June 30, 2025, we renewed our loan financing facility with Multinational Bank 1 in accordance with the mechanism for six-month renewal periods.
+Added: See “Liquidity and Capital Resources” below for a full description of our financing arrangements.
+Added: Our total borrowing capacity was $1.1 billion as of September 30, 2025;
+Added: Highlights of whole loan financing facilities activity over the third quarter of 2025 are as follows:
+Added: • During the quarter ended September 30, 2025, we maintained the same whole loan financing facility lender base as of December 31, 2024.
+Added: • 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.
+Added: • 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”).
+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 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 Master Repurchase Agreement expires on October 6, 2027, unless terminated earlier pursuant to the terms of the Master Repurchase Agreement.
Key Financial Metrics
10 unchanged sentences
Our methodology for calculating Distributable Earnings may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and as a result, our Distributable Earnings may not be comparable to similar measures presented by other REITs.
−Removed: We also use Distributable Earnings to determine the incentive fee, if any, payable to our Manager pursuant to the management agreement that we and the Operating Partnership entered into with our Manager upon the completion of our initial public offering of common stock (“IPO”) on June 21, 2021 and amended and restated on May 1, 2024 (as amended and restated, the “Management Agreement”).
+Added: We also use Distributable Earnings to determine the incentive fee, if any, payable to our Manager pursuant to the Management Agreement.
For information on the fees that are payable to our Manager under the Management Agreement, see “Note 10 – Related Party Transactions” in our unaudited condensed consolidated financial statements included in this report.
−Removed: Distributable Earnings were a gain of $2.6 million and a loss of $2.3 million for the three months ended June 30, 2025 and 2024, respectively.
−Removed: The primary drivers of the difference of Distributable Earnings as compared to GAAP net income in the quarters ended June 30, 2025 and June 30, 2024 are adjustments to remove unrealized losses on residential loans and adjustments to remove unrealized gains on residential loans in securitization trusts and non-recourse securitization obligation, respectively.
−Removed: For the six months ended June 30, 2025 and June 30, 2024, the primary drivers of the difference between Distributable Earnings and GAAP net income were adjustments to remove unrealized gains on residential loans in securitization trusts and non-recourse securitization obligation and adjustments to remove unrealized gains on residential loans, respectively.
−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 six months ended June 30, 2025 and 2024:
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024
+Added: 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.
+Added: 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.
+Added: Distributable Earnings were a gain of $7.3 million and a loss of $2.8 million for the nine months ended September 30, 2025 and 2024, respectively.
+Added: For the nine months ended September 30, 2025 and September 30, 2024, the primary drivers of the difference between Distributable Earnings and GAAP net income for both periods were adjustments to remove unrealized gains on residential loans in securitization trusts and non-recourse securitization obligation and unrealized gains on residential loans.
+Added: The table below sets forth a reconciliation of net income (loss) allocable to common stockholders, calculated in accordance with GAAP, to Distributable Earnings for the three and nine months ended September 30, 2025 and 2024:
+Added: Three Months Ended Nine Months Ended
+Added: September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024
(in thousands)
14 unchanged sentences
Our methodology for calculating Distributable Earnings Return on Average Equity may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and as a result, our Distributable Earnings Return on Average Equity may not be comparable to similar measures presented by other REITs.
−Removed: Set forth below is our computation of Distributable Earnings Return on Average Equity for the three and six months ended June 30, 2025 and 2024:
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024
+Added: Set forth below is our computation of Distributable Earnings Return on Average Equity for the three and nine months ended September 30, 2025 and 2024:
+Added: Three Months Ended Nine Months Ended
+Added: September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024
($ in thousands)
3 unchanged sentences
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 June 30, 2025 and December 31, 2024:
−Removed: June 30, 2025 December 31, 2024
+Added: 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:
+Added: September 30, 2025 December 31, 2024
(in thousands except for share and per share data)
6 unchanged sentences
These adjustments are also reflected in the table below in our end of period total stockholders’ equity.
−Removed: Management considers economic book value to provide investors with a useful supplemental measure to evaluate our financial position as it reflects the impact of fair value changes for our legally held retained bonds,
−Removed: irrespective of the accounting model applied for GAAP reporting purposes.
+Added: Management considers economic book value to provide investors with a useful supplemental measure to evaluate our financial position as it reflects the impact of fair value changes for our legally held retained bonds, irrespective of the accounting model applied for GAAP reporting purposes.
Economic book value does not represent and should not be considered as a substitute for book value per share of common stock or stockholders’ equity, as determined in accordance with GAAP, and our calculation of this measure may not be comparable to similarly titled measures reported by other companies.
−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 June 30, 2025 and December 31, 2024:
−Removed: June 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 September 30, 2025 and December 31, 2024:
+Added: September 30, 2025 December 31, 2024
(in thousands except for share and per share data)
6 unchanged sentences
Results of Operations
−Removed: Three Months Ended June 30, 2025 and 2024
−Removed: The following table sets forth a summary of our results of operations for the three months ended June 30, 2025 and 2024:
+Added: Three Months Ended September 30, 2025 and 2024
+Added: The following table sets forth a summary of our results of operations for the three months ended September 30, 2025 and 2024:
Three Months Ended
−Removed: June 30, 2025 June 30, 2024
+Added: September 30, 2025 September 30, 2024
(in thousands)
11 unchanged sentences
Stock compensation 398 604
−Removed: Securitization costs 1,866 1,410
Management fee incurred with affiliate 1,161 1,204
6 unchanged sentences
Net Interest Income
−Removed: The following table sets forth the components of net interest income for the three months ended June 30, 2025 and 2024:
+Added: The following table sets forth the components of net interest income for the three months ended September 30, 2025 and 2024:
Three Months Ended
−Removed: June 30, 2025 June 30, 2024
+Added: September 30, 2025 September 30, 2024
(in thousands)
15 unchanged sentences
Net interest income $ 10,180 $ 9,020
−Removed: We generated $9.2 million greater interest income for the quarter ended June 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 $8.7 million for the quarter ended June 30, 2025 compared to the comparable period for 2024, driven by increases in our total borrowings and our 2029 Notes and 2030 Notes issuances, both of which occurred after the quarter ended June 30, 2024.
−Removed: Overall, the increase in our interest income outpaced the increase in interest expense and drove a 5.0%, or $0.5 million, increase in net interest income for the quarter ended June 30, 2025 than in the comparable period for 2024.
+Added: 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.
+Added: 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.
+Added: 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.
Total Realized and Unrealized Gains (Losses)
−Removed: The components of total realized and unrealized gains (losses), net for the three months ended June 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 September 30, 2025 and 2024 are set forth as follows:
Three Months Ended
−Removed: June 30, 2025 June 30, 2024
+Added: September 30, 2025 September 30, 2024
(in thousands)
6 unchanged sentences
Realized and unrealized gain (loss) on residential mortgage loans 4,060 7,789
−Removed: Realized and unrealized gain (loss) on commercial mortgage loans — 27
Realized and unrealized gain (loss) on U.S.
3 unchanged sentences
Total realized and unrealized gains (losses), net $ 4,723 $ 28,837
−Removed: For the three months ended June 30, 2025 and 2024, total realized and unrealized gains and (losses), net resulted in net losses of $4.1 million and $4.1 million, respectively.
−Removed: During the three months ended June 30, 2025, realized and unrealized losses on securitization, net of unrealized gain (loss) on non-recourse securitization obligation, realized losses on interest rate futures, and realized and unrealized losses on residential mortgage loans were the primary drivers of the overall loss to our portfolio.
−Removed: During the three months ended June 30, 2024, losses on securitization, net of unrealized gain (loss) on non-recourse securitization obligation were the key drivers of the overall loss.
+Added: 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.
+Added: 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.
+Added: 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.
Operating Expenses
−Removed: For the three months ended June 30, 2025 and 2024, our operating expenses were $1.3 million and $1.7 million, respectively.
−Removed: Our operating expenses decreased compared to the comparative period due to a decrease in fees associated with the acquisition of whole loans in our whole loans portfolio.
+Added: For the three months ended September 30, 2025 and 2024, our operating expenses were $1.1 million and $1.5 million, respectively.
+Added: 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.
Operating Expenses Incurred with Affiliate
−Removed: For the three months ended June 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 flat in the three months ended June 30, 2025 compared to the same period of 2024.
+Added: 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.
+Added: 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.
Stock Compensation
−Removed: For the three months ended June 30, 2025 and 2024, our stock compensation expense was $0.3 million and $0.6 million, respectively.
−Removed: Our stock compensation expense decreased for the three months ended June 30, 2025 due primarily to the vesting of stock awards granted at our IPO.
−Removed: Securitization Costs
−Removed: For the three months ended June 30, 2025 and 2024, we incurred $1.9 million and $1.4 million of securitization costs, respectively.
−Removed: The expense in the three months ended June 30, 2025 is due to expenses associated with the AOMT 2025-4 and AOMT 2025-6 securitizations, and the expense in the first three months of 2024 was due to expenses associated with the AOMT 2024-4 and AOMT 2024-6 securitizations.
+Added: For the three months ended September 30, 2025 and 2024, our stock compensation expense was $0.4 million and $0.6 million, respectively.
+Added: 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.
Management Fee Incurred with Affiliate
−Removed: For the three months ended June 30, 2025 and 2024, our management fee incurred with affiliate was $1.1 million and $1.3 million, respectively.
−Removed: The decrease is due to the decrease in our average Equity (as defined in the Management Agreement) for the three months ended June 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, which has caused Equity (as defined in the Management Agreement) to decrease.
−Removed: Six Months Ended June 30, 2025 and 2024
−Removed: The following table sets forth a summary of our results of operations for the six months ended June 30, 2025 and 2024:
−Removed: Six Months Ended
−Removed: June 30, 2025 June 30, 2024
+Added: 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.
+Added: 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.
+Added: 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: Nine Months Ended September 30, 2025 and 2024
+Added: The following table sets forth a summary of our results of operations for the nine months ended September 30, 2025 and 2024:
+Added: Nine Months Ended
+Added: September 30, 2025 September 30, 2024
(in thousands)
19 unchanged sentences
Net Interest Income
−Removed: The following table sets forth the components of net interest income for the six months ended June 30, 2025 and 2024:
−Removed: Six Months Ended
−Removed: June 30, 2025 June 30, 2024
+Added: The following table sets forth the components of net interest income for the nine months ended September 30, 2025 and 2024:
+Added: Nine Months Ended
+Added: September 30, 2025 September 30, 2024
(in thousands)
16 unchanged sentences
Net interest income $ 30,206 $ 27,063
−Removed: Net interest income for the six months ended June 30, 2025 and 2024 was $20.0 million and $18.0 million, respectively.
−Removed: Net interest income increased in the six months ended June 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 six months ended June 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 $13.5 million in the six months ended June 30, 2025 as compared to $9.4 million in the comparable period of 2024.
+Added: Net interest income for the nine months ended September 30, 2025 and 2024 was $30.2 million and $27.1 million, respectively.
+Added: 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.
+Added: 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.
+Added: 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.
Total Realized and Unrealized Gains (Losses)
−Removed: The components of total realized and unrealized gains (losses), net for the six months ended June 30, 2025 and 2024 are set forth as follows:
−Removed: Six Months Ended
−Removed: June 30, 2025 June 30, 2024
+Added: 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:
+Added: Nine Months Ended
+Added: September 30, 2025 September 30, 2024
(in thousands)
3 unchanged sentences
(2,109) (2,469)
−Removed: Unrealized gain (loss) on Whole Pool Agency RMBS 5,640 (4,425)
+Added: Realized and unrealized gain (loss) on Whole Pool Agency RMBS
+Added: 3,668 (6,355)
Realized gain (loss) on CMBS (553) (186)
6 unchanged sentences
Unrealized appreciation (depreciation) on interest rate futures
−Removed: (2,134) 1,048
Realized gain/(loss) on AOMT MOA (437) —
Total realized and unrealized gains (losses), net $ 14,091 $ 33,987
−Removed: For the six months ended June 30, 2025 and 2024, total realized and unrealized gains (losses), net resulted in a net gains of $9.4 million and $5.2 million, respectively.
−Removed: During the six months ended June 30, 2025, gains on securitization, net of non-recourse securitization obligation, partially offset by losses on TBAs, were the primary drivers of the net gain.
−Removed: In the six months ended June 30, 2024, the net realized and unrealized gain was primarily due to gains on TBAs, interest rate futures, and residential mortgage loans offset by losses on whole pool agency RMBS.
+Added: 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.
+Added: 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.
+Added: 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.
Operating Expenses
−Removed: For the six months ended June 30, 2025 and 2024, our operating expenses were $2.5 million and $3.7 million, respectively.
−Removed: Our operating expenses decreased during the six months ended June 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 nine months ended September 30, 2025 and 2024, our operating expenses were $3.7 million and $5.3 million, respectively.
+Added: 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.
Operating Expenses Incurred with Affiliate
−Removed: For the six months ended June 30, 2025 and 2024, our operating expenses incurred with affiliate were $0.9 million and $1.0 million, respectively.
−Removed: These expenses, which are substantially comprised of payroll reimbursements to our Manager, decreased versus the comparative period due to achieved resource efficiencies.
+Added: 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.
+Added: These expenses, which are substantially comprised of payroll reimbursements to our Manager, decreased slightly versus the comparative period due to achieved resource efficiencies.
Stock Compensation
−Removed: For the six months ended June 30, 2025 and 2024 our stock compensation expense was $0.5 million and $1.3 million, respectively.
−Removed: Stock compensation expense decreased for the six months ended June 30, 2025 due primarily to the vesting of stock awards granted at our IPO.
+Added: For the nine months ended September 30, 2025 and 2024 our stock compensation expense was $0.9 million and $1.9 million, respectively.
+Added: Stock compensation expense decreased for the nine months ended September 30, 2025 due primarily to the vesting of stock awards granted at our IPO.
Securitization Costs
−Removed: Securitization costs of $1.9 million were incurred for the six months ended June 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.
+Added: 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.
+Added: 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.
Management Fee Incurred with Affiliate
−Removed: For the six months ended June 30, 2025 and 2024, our management fee incurred with affiliate was $2.3 million and $2.6 million, respectively.
−Removed: The decrease is due to the decrease in our average Equity as defined in the Management Agreement for the six months ended June 30, 2025 as compared to the same period in 2024.
+Added: 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.
+Added: 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.
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.
Our Portfolio
−Removed: As of June 30, 2025, our portfolio consisted of approximately $2.5 billion of residential mortgage loans, RMBS, and other target assets.
+Added: As of September 30, 2025, our portfolio consisted of approximately $2.5 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 June 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 September 30, 2025:
Fair Value Collateralized Debt Allocated Capital % of Total Capital
40 unchanged sentences
(2) “Target assets” as defined by us excludes U.S.
−Removed: Treasury securities, and includes our investment in a Majority-Owned Affiliates.
+Added: Treasury securities, and includes our investment in Majority-Owned Affiliates.
(3) Other assets and liabilities presented is calculated as a net liability substantially comprised of $202.0 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.
1 unchanged sentence
Residential Mortgage Loans
−Removed: The following table sets forth additional information on the residential mortgage loans in our portfolio as of June 30, 2025:
+Added: The following table sets forth additional information on the residential mortgage loans in our portfolio as of September 30, 2025:
Portfolio Range Portfolio Weighted Average
4 unchanged sentences
FICO score at loan origination 628 - 850
−Removed: CLTV at loan origination
+Added: Combined loan-to-value ratio (“CLTV”) at loan origination
DTI at loan origination 1.7% - 50.0%
14 unchanged sentences
Percentage of loans 90+ days delinquent (based on UPB) N/A —%
−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 June 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 September 30, 2025:
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, 2024:
−Removed: The following charts illustrate additional characteristics of our residential mortgage loans in our portfolio that we owned directly as of June 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 June 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 June 30, 2025.
+Added: 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):
+Added: Characteristics of Our Residential Mortgage Loans as of September 30, 2025:
+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 September 30, 2025.
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 June 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 September 30, 2025:
($ in thousands)
8 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 June 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 June 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 September 30, 2025 (percentages are 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 September 30, 2025.
Numbers presented may add to more than 100% due to rounding.
18 unchanged sentences
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 June 30, 2025, unless otherwise stated:
+Added: 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:
2019 Securitizations
53 unchanged sentences
(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 June 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 September 30, 2025:
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 June 30, 2025 were purchased from a broker to whom the Company owed approximately $254.2 million, payable upon the settlement date of the trade.
+Added: (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.
See Note 6 — Due to Broker in our unaudited condensed consolidated financial statements included in this report.
21 unchanged sentences
These bonds, with a fair value of $163.9 million, are not reflected in the consolidated balance sheets, as the Company reflects the assets of the VIE (residential mortgage loans in securitization trusts - at fair value) on its condensed consolidated balance sheets.
−Removed: The following table sets forth information with respect to our RMBS ending balances, at fair value, as of June 30, 2025:
+Added: The following table sets forth information with respect to our RMBS ending balances, at fair value, for the quarter ended September 30, 2025:
Mezzanine Subordinate Interest Only Whole Pool Total
(in thousands)
−Removed: Beginning fair value as of March 31, 2025
+Added: Beginning fair value as of June 30, 2025
$ 12,831 $ 80,510 $ 10,992 $ 257,552 $ 361,885
Acquisitions:
−Removed: Retained bonds received in securitizations — 7,493 586 — $ 8,079
Third party securities — — — 153,819 $ 153,819
2 unchanged sentences
Changes in fair value, net 415 250 2,846 (2,005) $ 1,506
−Removed: Ending fair value as of June 30, 2025
+Added: Ending fair value as of September 30, 2025
$ 13,246 $ 56,382 $ 10,258 $ 155,138 $ 235,024
12 unchanged sentences
$ 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 June 30, 2025 (percentages are based on the aggregate unpaid principal balance of such loans):
+Added: 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):
Geographic Diversification of Loans Underlying Our Portfolio
of RMBS Issued in AOMT Securitization Transactions
−Removed: (as of June 30, 2025)
+Added: (as of September 30, 2025)
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 June 30, 2025.
+Added: securitization transactions as of September 30, 2025.
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 2029 Notes.
+Added: 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”).
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.
14 unchanged sentences
Description of Existing Financing Arrangements
−Removed: As of June 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: During the quarter ended June 30, 2025, we renewed our loan financing facility with Multinational Bank 1 in accordance with the mechanism for six-month renewal periods.
−Removed: Borrowings under warehouse loan financing lines (in general, each a “loan financing facility”) may be used to purchase whole loans for securitization or loans purchased for long‑term investment purposes.
+Added: 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.
+Added: 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.
+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 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 Master Repurchase Agreement expires on October 6, 2027, unless terminated earlier pursuant to the terms of the Master Repurchase Agreement.
+Added: 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.
+Added: 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.
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 June 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.
+Added: 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.
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 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: (2) our minimum liquidity must not fall
+Added: 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);
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 June 30, 2025 was $10.0 million.
−Removed: A description of each loan financing facility in place during the quarter ended June 30, 2025 is set forth as follows:
+Added: Our minimum liquidity requirement as of September 30, 2025 was $10.0 million.
+Added: A description of each loan financing facility in place during the quarter ended September 30, 2025 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 June 30, 2025, the termination date of the master repurchase agreement was December 25, 2025, unless terminated earlier pursuant to the terms of the master repurchase agreement.
+Added: 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.
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.
22 unchanged sentences
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) the greater 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 1.75% to 3.35%.
+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 (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
+Added: Overnight Financing Rate for a corresponding tenor of one month) and (B) a pricing spread generally ranging from 1.75% to 3.35%.
+Added: 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%.
The agreement requires us to maintain various financial and other covenants, which include requirements surrounding:
12 unchanged sentences
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.
−Removed: On November 1, 2024, the facility’s termination date was extended to November 1, 2025.
−Removed: In addition, the base interest rate spread was reduced to a range from 1.90% to 4.75% and the index spread adjustment of 20 basis points was eliminated.
+Added: On September 26, 2025, the facility’s termination date was extended to September 26, 2026.
+Added: In addition, the interest rate pricing spread was reduced to a range from 1.75% to 4.75%;
+Added: 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.
6 unchanged sentences
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 June 30, 2025 and December 31, 2024:
+Added: The following table sets forth the details of our financing lines as of each of September 30, 2025 and December 31, 2024:
Spread Drawn Amount
−Removed: Note Payable Base Interest Rate June 30, 2025 December 31, 2024
+Added: Note Payable Base Interest Rate September 30, 2025 December 31, 2024
(in thousands)
8 unchanged sentences
Total $ 342,608 $ 129,459
−Removed: (1) On June 24, 2025, this financing facility was extended through December 25, 2025 in accordance with the terms of the agreement, which contemplates six-month renewals.
+Added: (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.
The interest rate pricing spread remained unchanged from the prior extension at a range from 1.65% to 2.10%.
1 unchanged sentence
This updated facility is extended through March 27, 2026.
−Removed: On October 25, 2024, the facility was amended to, among other changes, reduced the interest rate pricing spread to a range from 1.75% and 3.35%;
−Removed: prior to this amendment, the interest rate pricing spread was a range from 2.10% and 3.45%.
−Removed: (3) On November 1, 2024, the facility’s termination date was extended to November 1, 2025.
−Removed: In addition, the base interest rate spread was reduced to a range from 1.90% to 4.75% and the index spread adjustment of 20 basis points was eliminated;
−Removed: prior to this extension, the base interest rate pricing spread was a range from 2.00% to 4.50%.
−Removed: The following table sets forth the total unused borrowing capacity of each financing line as of June 30, 2025:
+Added: On October 10, 2025, the facility was amended to reduce the interest rate pricing spread to a range of 1.65% to 2.40%;
+Added: prior to this amendment, the interest rate pricing spread was a range of 1.75% to 3.35%.
+Added: (3) On September 26, 2025, the facility’s termination date was extended to September 26, 2026.
+Added: In addition, the interest rate pricing spread was reduced to a range from 1.75% to 4.75%;
+Added: prior to this extension, the interest rate pricing spread was a range from 1.90% to 4.75%.
+Added: The following table sets forth the total unused borrowing capacity of each financing line as of September 30, 2025:
Note Payable Borrowing Capacity Balance Outstanding Available Financing
8 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 June 30, 2025 and December 31, 2024:
−Removed: June 30, 2025
+Added: The following table sets forth certain characteristics of our short-term repurchase facilities as of September 30, 2025 and December 31, 2024:
+Added: September 30, 2025
Repurchase Agreements Amount Outstanding Weighted Average Interest Rate Weighted Average Remaining Maturity (Days)
7 unchanged sentences
$ 50,555 5.76 % 19
−Removed: (1) A portion of repurchase debt outstanding as of both June 30, 2025 and December 31, 2024 includes borrowings against retained bonds received from on-balance sheet securitizations (i.e., consolidated VIEs).
+Added: (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).
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
Q4 2024 50,555 53,412 51,843
−Removed: Q4 2024 50,555 53,412 51,843
148,467 62,631 148,467
68,062 71,980 148,467
+Added: Q3 2025 54,041 64,557 68,062
We utilize short‑term repurchase facilities on our RMBS portfolio and to finance assets for REIT asset test purposes.
3 unchanged sentences
Securitization Transactions
+Added: 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: We issued AOMT 2025-10 as the sole contributor in the securitization.
+Added: 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.
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.
2 unchanged sentences
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 participant in a securitization transaction of a pool of residential mortgage loans, secured exclusively by first liens on one‑to‑four family residential properties.
+Added: 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.
In the transaction, AOMT 2025-4 issued approximately $284.3 million in face value of bonds.
4 unchanged sentences
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 June 30, 2025.
−Removed: In October 2024, we were the sole participant 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 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.
+Added: 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.
In the transaction, AOMT 2024-10 issued approximately $316.8 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 2024-10 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 June 30, 2025.
+Added: 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.
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.
2 unchanged sentences
We used the proceeds of the securitization transaction to repay outstanding debt of approximately $15.8 million and retained cash of $1.8 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 June 30, 2025.
−Removed: In April 2024, we were the sole participant 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 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.
+Added: 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.
In the transaction, AOMT 2024-4 issued approximately $299.8 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 June 30, 2025.
+Added: 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.
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.
2 unchanged sentences
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 June 30, 2025.
+Added: 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.
Notes Offerings
−Removed: 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: The 2030 Notes bear interest at a rate of 9.750% per annum, payable quarterly in arrears on March 1, June 1, September 1, and December 1 of each year, beginning on September 1, 2025.
−Removed: The 2030 Notes will mature on June 1, 2030, unless earlier redeemed or repurchased by us.
−Removed: The 2030 Notes are fully and unconditionally guaranteed on a senior unsecured basis by the Operating Partnership, including the due and punctual payment of principal of, premium, if any, and interest on the 2030 Notes, whether at the stated maturity, upon acceleration, call for redemption or otherwise.
−Removed: We may redeem the 2030 Notes in whole or in part at any time or from time to time at our option on or after June 1, 2027, at a redemption price equal to 100% of the principal amount of the 2030 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.
−Removed: Upon the occurrence of certain events relating to a change of control of us, we must make an offer to repurchase all outstanding 2030 Notes at a price in cash equal to 101% of the principal amount of the 2030 Notes, plus accrued and unpaid interest to, but excluding, the repurchase date.
−Removed: On July 25, 2024, we closed an underwritten public offering and sale of, and issued, $50 million in aggregate principal amount of our 2029 Notes.
−Removed: The 2029 Notes bear interest at a rate of 9.500% per annum, payable quarterly in arrears on January 30, April 30, July 30 and October 30 of each year.
−Removed: The 2029 Notes will mature on July 30, 2029, unless earlier redeemed or repurchased by us.
−Removed: The 2029 Notes are fully and unconditionally guaranteed on a senior unsecured basis by the Operating Partnership, including the due and punctual payment of principal of, premium, if any, and interest on the 2029 Notes, whether at the stated maturity, upon acceleration, call for redemption or otherwise.
−Removed: We may redeem the 2029 Notes in whole or in part at any time or from time to time at our option on or after July 30, 2026 at a redemption price equal to 100% of the principal amount of the 2029 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.
−Removed: Upon the occurrence of certain events relating to a change of control of us, we must make an offer to repurchase all outstanding 2029 Notes at a price in cash equal to 101% of the principal amount of the 2029 Notes, plus accrued and unpaid interest to, but excluding, the repurchase date.
+Added: 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: 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 $47.5 million.
+Added: The below table provides a summary of the Senior Unsecured Notes as of September 30, 2025 ($ in thousands).
+Added: Senior Unsecured Notes (1) Principal Amount
+Added: Carrying Value Maturity Date (2)
+Added: Redemption Date (3)
+Added: June 2030 Senior Unsecured Notes $ 42,500 $ 40,681 June 2030 June 2027 9.750 %
+Added: July 2029 Senior Unsecured Notes $ 50,000 $ 48,114 July 2029 July 2026 9.500 %
+Added: (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.
+Added: (2) The Company has the option to redeem the Senior Unsecured Notes earlier than the maturity date.
+Added: (3) The Company may redeem the Senior Unsecured Notes in whole or in part at any time on or after the optional redemption date, at a redemption price equal to 100% of the outstanding principal amount of the Senior Unsecured Notes to be redeemed plus accrued and unpaid interest to, but excluding, the redemption date.
+Added: 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.
+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, beginning on September 1, 2025.
+Added: 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.
+Added: 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.
+Added: Three Months Ended Nine Months Ended
+Added: September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024
+Added: Coupon interest expense $ 2,223,437 $ 884,028 $ 5,070,365 $ 884,028
+Added: Amortization expense 221,407 109,371 559,112 109,371
+Added: Total interest expense $ 2,444,844 $ 993,399 $ 5,629,477 $ 993,399
+Added: 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.
+Added: At September 30, 2025 and September 30, 2024, the unamortized deferred debt issuance cost was $1.3 million and $0.9 million, respectively.
+Added: The unamortized debt issuance costs will be amortized until maturity.
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: The Company issued and sold 215,622 shares of common stock through the ATM Program during the three and six months ended June 30, 2025 for gross proceeds of $2.2 million, receiving net proceeds of $2.2 million.
−Removed: The Company paid $44 thousand in commissions to the agents under the ATM Program in connection with such sales during the three and six months ended June 30, 2025.
−Removed: As of June 30, 2025, the Company had approximately $71 million of gross proceeds available for issuance under the ATM Program and Sales Agreement.
+Added: 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: These shares of common stock were issued in SEC registered transactions off the Company’s shelf registration statement.
+Added: 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.
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 assets or liabilities.
+Added: For example, we may enter into hedging transactions with respect to interest rate exposure on one or more of our
+Added: 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 June 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 September 30, 2025 was sufficient to meet our liquidity covenants under our financing facilities and the 2029 Notes and 2030 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 June 30, 2025 or December 31,2024.
+Added: There was no margin collateral required as of September 30, 2025 or December 31,2024.
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 $3.9 million as of June 30, 2025 was comprised of:
+Added: Restricted cash of approximately $1.8 million as of September 30, 2025 was comprised of:
$0.6 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, 2024.
−Removed: Six Months Ended
−Removed: June 30, 2025 June 30, 2024
+Added: Nine Months Ended
+Added: September 30, 2025 September 30, 2024
(in thousands)
3 unchanged sentences
Net increase in cash and restricted cash $ 10,538 $ 235
−Removed: The cash used in operating activities of $181.1 million for the six months ended June 30, 2025 as compared to the cash provided of $16.0 million for the six months ended June 30, 2024 was primarily due to the volume of residential mortgage loans purchased from non affiliates during the first six months of 2024, as compared to the first six months of 2025.
−Removed: The use of investing cash flows of $5.8 million for the six months ended June 30, 2025 as compared to cash used in investing activities of $11.1 million for the six months ended June 30, 2024 were primarily due to the timing of purchases and maturities of U.S.
+Added: 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.
+Added: 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.
Treasury securities in the comparative period of 2024.
−Removed: Financing cash flows provided $188.3 million for the six months ended June 30, 2025 as compared to $3.3 million used in the six months ended June 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 $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.
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 changed since December 31, 2024.
+Added: Our critical accounting policies and estimates have not materially
+Added: changed since December 31, 2024.
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.