AOMN · Angel Oak Mortgage REIT, Inc. 9

Angel Oak Mortgage REIT reported a Q1 2026 GAAP net loss of $7.4 million, or ($0.30) per diluted share, primarily driven by $14.3 million in net realized and unrealized losses on mortgage loans, derivatives, and securitized assets, offsetting $12.1 million net interest income. Interest income rose to $40.7 million from $32.9 million year-over-year, fueled by higher yielding residential mortgage assets, while interest expense increased to $28.6 million due to elevated borrowings. Management highlighted the earnings engine's resilience in a variable macro environment, with net interest income expanding 20% year-over-year and 11% sequentially. Key strategic moves included the March AOMT 2026-2 securitization of $272.3 million in loans at 7.11% weighted average coupon, reducing recourse debt by $234.1 million, releasing $23.9 million cash for reinvestment, and demonstrating repeatable execution ahead of market spread-widening from Middle East geopolitical tensions. The company purchased $246.2 million in new non-QM loans with 7.34% coupon, 67.1% CLTV, and 759 FICO, boosting portfolio yield to 7.62%. Balance sheet remains solid with $2.7 billion target assets, $1.1 billion financing capacity, and 1.3x recourse debt-to-equity. Distributable Earnings of $4.6 million ($0.18/share) better reflect core operations excluding unrealized marks. CEO Sreeni Prabhu emphasized disciplined credit, earnings expansion, and consistent securitizations. A $0.32/share dividend was declared, payable May 29 to May 22 record holders, signaling confidence in cash generation despite GAAP loss. GAAP book value dipped 4.0% to $10.31/share amid unrealized headwinds, while economic book value fell 3.3% to $12.28/share.