Angel Oak Mortgage REIT, Inc. Reports Third Quarter 2026 Financial Results
ATLANTA--( BUSINESS WIRE)--Angel Oak Mortgage REIT, Inc. (NYSE: 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 September 30, 2026.
Third Quarter and Year to Date 2026 Highlights
Sreeni Prabhu, Chief Executive Officer and President of Angel Oak Mortgage REIT, Inc., said, “During the third quarter, we completed two securitizations early in the period, ahead of the bulk of the increase in rates. These transactions underscore the benefits of our consistent, deliberate approach to securitizations, which remains an important component of our financing and risk management strategy. While the higher-rate environment has created near-term pressure on portfolio valuations and what we believe to be a short term squeeze on the potential returns on new investments, we remain confident in the underlying credit performance of our portfolio. We continue to deploy capital selectively and maintain the disciplined underwriting standards that have guided our strategy, with a focus on preserving long-term credit performance rather than pursuing incremental returns in a more challenging market.”
Portfolio and Investment Activity
Capital Markets Activity
As of September 30, 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 $255 million was drawn, leaving capacity of approximately $1 billion for new loan purchases.
Balance Sheet
Dividend
On November 3, 2026, the Company declared a dividend of $0.32 per share of common stock, to be paid on November 30, 2026 to common stockholders of record as of November 23, 2026.
Conference Call and Webcast Information
The Company will host a live conference call and webcast today, November 3, 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: 1177953
The playback can be accessed through November 17, 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 undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise.
About Angel Oak Mortgage REIT, Inc.
Angel Oak Mortgage REIT, Inc. is a real estate finance company focused on acquiring and investing in first and second lien non-QM loans and other mortgage-related assets in the U.S. mortgage market. The Company’s objective is to generate attractive risk-adjusted returns for its stockholders through cash distributions and capital appreciation across interest rate and credit cycles. The Company is externally managed and advised by an affiliate of Angel Oak Capital Advisors, LLC, which, collectively with its affiliates, is a leading alternative credit manager with market leadership in mortgage credit that includes asset management, lending, and capital markets. Additional information about the Company is available at www.angeloakreit.com
Angel Oak Mortgage REIT, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
(Unaudited)
(in thousands, except for share and per share data)
Three Months Ended
Nine Months Ended
September 30, 2026
September 30, 2025
September 30, 2026
September 30, 2025
INTEREST INCOME, NET
Interest income
$
42,459
$
36,659
$
124,551
$
104,620
Interest expense
32,223
26,479
91,464
74,414
NET INTEREST INCOME
$
10,236
$
10,180
$
33,087
$
30,206
REALIZED AND UNREALIZED GAINS (LOSSES), NET
Net realized gain (loss) on mortgage loans, derivative contracts, RMBS, and CMBS
$
1,757
$
(6,557
)
$
513
$
(12,238
)
Net unrealized gain (loss) on mortgage loans, portion of debt at fair value option, derivative contracts, and trading securities
(22,619
)
11,280
(39,428
)
26,329
TOTAL REALIZED AND UNREALIZED GAINS (LOSSES), NET
$
(20,862
)
$
4,723
$
(38,915
)
$
14,091
EXPENSES
Operating expenses
$
2,105
$
1,117
$
5,331
$
3,653
Operating expenses incurred with affiliate
559
510
1,678
1,379
Stock compensation
459
398
1,305
930
Securitization costs
1,833
—
3,235
1,866
Management fee incurred with affiliate
1,091
1,161
3,322
3,454
Total operating expenses
$
6,047
$
3,186
$
14,871
$
11,282
INCOME (LOSS) BEFORE INCOME TAXES
$
(16,673
)
$
11,717
$
(20,699
)
$
33,015
Income tax expense (benefit)
—
307
—
307
NET INCOME (LOSS) ALLOCABLE TO COMMON STOCKHOLDERS
$
(16,673
)
$
11,410
$
(20,699
)
$
32,708
Other comprehensive income (loss)
(1,857
)
3,665
(765
)
2,479
TOTAL COMPREHENSIVE INCOME (LOSS)
$
(18,530
)
$
15,075
$
(21,464
)
$
35,187
Basic earnings (loss) per common share
$
(0.72
)
$
0.49
$
(0.87
)
$
1.40
Diluted earnings (loss) per common share
$
(0.72
)
$
0.46
$
(0.87
)
$
1.36
Weighted average number of common shares outstanding:
Basic
23,167,436
23,043,587
23,957,077
23,320,200
Diluted
23,167,436
24,560,881
23,957,077
24,014,840
Angel Oak Mortgage REIT, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
(Unaudited)
(in thousands, except for share and per share data)
As of:
September 30, 2026
December 31, 2025
ASSETS
Residential mortgage loans - at fair value
$
303,713
$
294,134
Residential mortgage loans in securitization trusts - at fair value
2,273,583
2,076,776
RMBS - at fair value
209,178
280,005
Cash and cash equivalents
49,130
41,619
Restricted cash
—
3,666
Principal and interest receivable
12,543
10,354
TBA securities and interest rate futures contracts - at fair value
5,138
240
Other assets
44,905
42,984
Total assets
$
2,898,190
$
2,749,778
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Notes payable
$
255,027
$
218,757
Non-recourse securitization obligation, collateralized by residential mortgage loans in securitization trusts (see Note 2)
2,118,434
1,915,321
Securities sold under agreements to repurchase
65,068
54,041
Senior unsecured notes
89,708
89,023
TBA securities and interest rate futures contracts - at fair value
—
32
Due to broker
154,696
198,191
Accrued expenses
2,787
2,021
Accrued expenses payable to affiliate
634
783
Interest payable
2,043
3,423
Management fee payable to affiliate
40
663
Total liabilities
$
2,688,437
$
2,482,255
STOCKHOLDERS' EQUITY
Common stock, $0.01 par value. As of September 30, 2026: 350,000,000 shares authorized, 23,395,874 shares issued and outstanding. As of December 31, 2025: 350,000,000 shares authorized, 24,914,647 shares issued and outstanding.
$
232
$
249
Additional paid-in capital
461,477
474,577
Accumulated other comprehensive income (loss)
(2,077
)
(1,314
)
Retained earnings (deficit)
(249,879
)
(205,989
)
Total stockholders' equity
$
209,753
$
267,523
Total liabilities and stockholders' equity
$
2,898,190
$
2,749,778
Angel Oak Mortgage REIT, Inc.
Reconciliation of Net Income (Loss) to Distributable Earnings
and Distributable Earnings Return on Average Equity
(Unaudited)
Three Months Ended
Nine Months Ended
September 30, 2026
September 30, 2025
September 30, 2026
September 30, 2025
(in thousands)
Net income (loss) allocable to common stockholders
$
(16,673
)
$
11,410
$
(20,699
)
$
32,708
Adjustments:
Net unrealized (gains) losses on trading securities
(1,012
)
2,005
502
(1,861
)
Net unrealized (gains) losses on derivatives
(3,649
)
(4,990
)
(4,929
)
881
Net unrealized (gains) losses on residential loans in securitization trusts and non-recourse securitization obligation
22,411
(3,995
)
33,531
(20,199
)
Net unrealized (gains) losses on residential loans
4,869
(4,299
)
10,472
(5,149
)
Net unrealized (gains) losses on commercial loans
—
—
(149
)
—
Stock compensation expense
459
398
1,305
930
Distributable Earnings
$
6,405
$
529
$
20,033
$
7,310
Three Months Ended
Nine Months Ended
September 30, 2026
September 30, 2025
September 30, 2026
September 30, 2025
($ in thousands)
Annualized Distributable Earnings
$
25,620
$
2,116
$
26,711
$
9,747
Average total stockholders’ equity
$
222,309
$
255,276
$
233,840
$
250,250
Distributable Earnings Return on Average Equity
11.5
%
0.8
%
11.4
%
3.9
%
Angel Oak Mortgage REIT, Inc.
Reconciliation of Stockholders’ Equity to Stockholders’ Equity Including Economic Book Value Adjustments
and Economic Book Value per Share of Common Stock
(Unaudited)
September 30, 2026
June 30, 2026
March 31, 2026
December 31, 2025
September 30, 2025
(in thousands, except for share and per share data)
GAAP total stockholders’ equity
$
209,753
$
234,865
$
256,902
$
267,523
$
264,165
Adjustments:
Fair value adjustment for securitized debt held at amortized cost
58,111
48,833
48,958
48,789
52,770
Stockholders’ equity including economic book value adjustments
$
267,864
283,698
$
305,860
$
316,312
$
316,935
Number of shares of common stock outstanding at period end
23,395,874
23,178,979
24,914,647
24,914,647
24,914,035
Book value per share of common stock
$
8.97
$
10.13
$
10.31
$
10.74
$
10.60
Economic book value per share of common stock
$
11.45
$
12.24
$
12.28
$
12.70
$
12.72