ATLANTA--(BUSINESS WIRE)--May 05, 2026-- 

Angel Oak Mortgage REIT, Inc. $(AOMR)$ (the "Company," "we," and "our"), a leading real estate finance company focused on acquiring and investing in first and second lien non-QM loans and other mortgage-related assets in the U.S. mortgage market, today reported financial results for the quarter ended March 31, 2026.

First Quarter 2026 Highlights

   --  Q1 2026 GAAP net loss of $(7.4) million, or $(0.30) per diluted share 
      of common stock. 
 
   --  Q1 2026 net interest income of $12.1 million demonstrates an increase 
      of 20.1% versus Q1 2025 net interest income of $10.1 million and an 
      increase of 11.2% versus Q4 2025 net interest income of $10.9 million. 
 
   --  Q1 2026 GAAP book value of $10.31 per share and economic book value of 
      $12.28 per share, decreases of 4.0% and 3.3%, respectively, compared to 
      the end of 2025. 
 
   --  Q1 2026 Distributable Earnings of $4.6 million, or $0.18 per diluted 
      share of common stock. 
 
   --  Declared a dividend of $0.32 per share of common stock, which will be 
      paid on May 29, 2026, to common stockholders of record as of May 22, 
      2026. 

Sreeni Prabhu, Chief Executive Officer and President of Angel Oak Mortgage REIT, Inc., said, "The first quarter showcased our earnings engine in a variable macro environment, marking approximately 20% net interest income growth compared to the first quarter of 2025 and over 11% net interest income growth compared to the fourth quarter of 2025. In early March, we executed a $272 million securitization, taking advantage of favorable market conditions prior to spread-widening associated with the onset of geopolitical conflict in the Middle East and underscoring the benefits of our methodical, repeatable approach." Prabhu continued, "Looking ahead, we will continue to focus on what we can control, maintaining disciplined credit, expanding earnings, and consistent securitization market activity."

Portfolio and Investment Activity

   --  In March 2026, the Company executed the AOMT 2026-2 securitization as 
      the sole contributor of loans. The Company contributed loans with a 
      scheduled unpaid principal balance of approximately $272.3 million and a 
      7.11% weighted average coupon. This securitization reduced the Company's 
      debt by approximately $234.1 million and released cash of $23.9 million 
      to the Company, which was used for new loan purchases and operational 
      purposes. 
 
   --  During the quarter, the Company 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 non-zero 
      credit score of 759. 
 
   --  As of March 31, 2026, the weighted average coupon of our residential 
      whole loans portfolio was 7.62%, marking a 24 basis point increase 
      compared to December 31, 2025. 

Capital Markets Activity

As of March 31, 2026, the Company was a party to four loan financing lines which permit borrowings in an aggregate amount of up to $1.3 billion, of which approximately $192 million was drawn, leaving capacity of approximately $1.1 billion for new loan purchases.

Balance Sheet

   --  Target assets totaled $2.7 billion as of March 31, 2026 
 
   --  The Company held residential mortgage whole loans awaiting 
      securitization with fair value of $245.5 million as of March 31, 2026. 
 
   --  As of March 31, 2026, the Company's recourse debt to equity ratio was 
      1.3x. 

Dividend

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

Conference Call and Webcast Information

The Company will host a live conference call and webcast today, May 5, 2026 at 8:30 a.m. Eastern time. To listen to the live webcast, go to the Investors section of the Company's website at www.angeloakreit.com at least 15 minutes prior to the scheduled start time in order to register and install any necessary audio software.

To Participate in the Telephone Conference Call:

Dial in at least 15 minutes prior to start time.

Domestic: 1-800-717-1738

International: 1-646-307-1865

Conference Call Playback:

Domestic: 1-844-512-2921

International: 1-412-317-6671

Pass code: 1164285

The playback can be accessed through May 19, 2026.

Non-GAAP Metrics

Distributable Earnings is a non--GAAP measure and is defined as net income (loss) allocable to common stockholders as calculated in accordance with generally accepted accounting principles in the United States of America ("GAAP"), excluding (1) unrealized gains and losses on our aggregate portfolio, (2) impairment losses, (3) extinguishment of debt, (4) non-cash equity compensation expense, (5) the incentive fee earned by Falcons I, LLC, our external manager (our "Manager"), (6) realized gains or losses on swap terminations and (7) certain other nonrecurring gains or losses. We believe that the presentation of Distributable Earnings provides investors with a useful measure to facilitate comparisons of financial performance among our real estate investment trust ("REIT") peers, but has important limitations. We believe Distributable Earnings as described above helps evaluate our financial performance without the impact of certain transactions but is of limited usefulness as an analytical tool. Therefore, Distributable Earnings should not be viewed in isolation and is not a substitute for net income computed in accordance with GAAP. Our methodology for calculating Distributable Earnings may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and as a result, our Distributable Earnings may not be comparable to similar measures presented by other REITs.

Distributable Earnings Return on Average Equity is a non-GAAP measure and is defined as annual or annualized Distributable Earnings divided by average total stockholders' equity. We believe that the presentation of Distributable Earnings Return on Average Equity provides investors with a useful measure to facilitate comparisons of financial performance among our REIT peers, but has important limitations. Additionally, we believe Distributable Earnings Return on Average Equity provides investors with additional detail on the Distributable Earnings generated by our invested equity capital. We believe Distributable Earnings Return on Average Equity as described above helps evaluate our financial performance without the impact of certain transactions but is of limited usefulness as an analytical tool. Therefore, Distributable Earnings Return on Average Equity should not be viewed in isolation and is not a substitute for net income computed in accordance with GAAP. Our methodology for calculating Distributable Earnings Return on Average Equity may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and as a result, our Distributable Earnings Return on Average Equity may not be comparable to similar measures presented by other REITs.

Economic book value is a non-GAAP financial measure of our financial position. To calculate our economic book value, the portions of our non-recourse financing obligation held at amortized cost are adjusted to fair value. These adjustments are also reflected in our end of period total stockholders' equity. Management considers economic book value to provide investors with a useful supplemental measure to evaluate our financial position as it reflects the impact of fair value changes for our legally held retained bonds, irrespective of the accounting model applied for GAAP reporting purposes. Economic book value does not represent and should not be considered as a substitute for book value per share of common stock or stockholders' equity, as determined in accordance with GAAP, and our calculation of this measure may not be comparable to similarly titled measures reported by other companies.

Forward-Looking Statements

This press release contains certain forward-looking statements that are subject to various risks and uncertainties, including, without limitation, statements relating to the performance of the Company's investments. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "will," "should," "potential," "intend," "expect," "endeavor," "seek," "anticipate," "estimate," "believe," "could," "project," "predict," "continue," or by the negative of these words and phrases or other similar words or expressions. Forward-looking statements are based on certain assumptions, discuss future expectations, describe existing or future plans and strategies, contain projections of results of operations, liquidity and/or financial condition, or state other forward-looking information. The Company's ability to predict future events or conditions or their impact or the actual effect of existing or future plans or strategies is inherently uncertain. Although the Company believes that such forward-looking statements are based on reasonable assumptions, actual results and performance in the future could differ materially from those set forth in or implied by such forward-looking statements. You are cautioned not to place undue reliance on these forward--looking statements, which reflect the Company's views only as of the date of this press release. Additional information concerning factors that could cause actual results and performance to differ materially from these forward-looking statements is contained from time to time in the Company's filings with the Securities and Exchange Commission. Except as required by applicable law, neither the Company nor any other person assumes responsibility for the accuracy and completeness of the forward--looking statements. The Company does not

(MORE TO FOLLOW) Dow Jones Newswires

May 05, 2026 07:00 ET (11:00 GMT)