Angel Oak Mortgage, Inc. Q3 FY2025 earnings call

• Disciplined execution and strategic progress with capital reallocation into high-yielding assets, improved funding costs, and diversified lender base. - Called and retired 2 legacy vintage deals, releasing $19 million of capital for reinvestment. - Added new warehouse credit facility and extended another at attractive rates. - Securitization market remains active; AOMT 2025-10 securitization closed in October. - GAAP net income for Q3 2025 was $11.4 million or $0.46 per diluted common share. - Credit performance strong with 90+ days delinquent at 2.2%, AOMT securitization shelf outperforming other non-QM shelves.

Net interest income for the third quarter of 2025 was up 13% compared to the third quarter of 2024 and 2% compared to the second quarter of 2025. GAAP book value per share increased by over 2% compared to the second quarter. Year-to-date, net interest income increased 11% compared to 2024. Operating expenses, excluding securitization costs and stock compensation expense, were 13% lower than in the third quarter of 2024 and 5% lower than the second quarter of 2025. Year-to-date, these expenses were 19% lower than in 2024. In the third quarter, loan purchases totaled $238 million with a weighted average coupon of 7.74%. The total residential whole loan portfolio had a weighted average coupon of 7.98%, with the non-QM portion at 7.37% and HELOCs at 11.03%. The current weighted average coupon is approximately 8.7% due to the 2025-10 securitization. Loans in the securitization trust portfolio had a weighted average coupon rate of 5.8% with a weighted average funding cost of ~4.2%.

• Expect net interest income to continue growing from accretive loans and Q4 securitization. - Intend to leverage the active securitization market with a disciplined securitization strategy. - Look to resecuritize and call delevered deals as opportunities arise. - Plan to maintain current operating expense levels.

• Forward-looking statements subject to risks and uncertainties affecting actual results. - Competition in the space could impact loan sourcing. - Credit cycle volatility may lead to higher defaults and losses. - Changes in securitization market conditions.

Q: Thoughts on calling old securitizations and margin impact?

A: Retired 2 legacy vintage deals, releasing $19 million of capital to reinvest in higher-yielding loans; expect to evaluate other delevered deals.

Q: How to source loans against competition?

A: Consistent non-QM program, strong relationships with originators, ability to close deals reliably.

Q: Outlook for investment portfolio growth?

A: Proceeds from securitizations and retirements provide runway for growth; plan to securitize HELOCs and evaluate other deals.

Q: Drivers of GAAP vs economic book value?

A: Difference due to securitizations done post-IPO held at amortized cost vs fair value, marking up as market conditions change.

Q: Securitization size and HELOC focus?

A: Consistent securitization activity; HELOCs are non-QM adjacent, will keep portfolio at current levels.