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AOMR is like the Sallie Mae for non-traditional home loans.

AOMR is like a highly specialized mortgage division of a large bank, such as JPMorgan Chase, but investing only in unique, non-standard home loans.

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• Non-Qualified Mortgage (Non-QM) Loans: AOMR invests in and acquires residential mortgage loans that do not meet traditional Qualified Mortgage standards, often serving creditworthy borrowers with non-traditional income or employment.
• Residential Mortgage-Backed Securities (RMBS): The company also invests in securities collateralized by pools of residential mortgages, including those backed by non-QM loans, providing diversified exposure to the housing market.

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Angel Oak Mortgage REIT (AOMR) is a real estate investment trust that focuses on acquiring and investing in a diversified portfolio of residential mortgage loans, primarily non-qualified mortgage (non-QM) loans. While the company operates as an investor in the mortgage market, the "customers" for the mortgage loans it funds or originates are ultimately individuals.

Therefore, Angel Oak Mortgage REIT primarily serves individuals, specifically those seeking non-qualified mortgage (non-QM) loans. These borrowers typically do not meet the strict underwriting guidelines for traditional "qualified mortgages" offered by Fannie Mae, Freddie Mac, or government-backed programs. Here are up to three categories of customers it serves:

1. Self-Employed Borrowers: These individuals often have complex income structures, rely on business deductions, or use non-traditional income verification methods (such as bank statements or asset-based qualification) that do not fit the strict underwriting criteria for conventional loans.
2. Real Estate Investors: Individuals who purchase investment properties (such as rental homes or vacation rentals) and may require flexible underwriting due to owning multiple properties, having income primarily derived from investments, or preferring not to have the loan count against their personal debt-to-income ratio.
3. Borrowers with Unique Financial Situations or Recent Credit Events: This category includes high net worth individuals who prefer asset-based lending, foreign nationals with limited U.S. credit history, or borrowers who have recovered from past credit events (like bankruptcy, foreclosure, or short sale) but still fall outside the strict timelines and criteria of conventional loans.

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Angel Oak Capital Advisors, LLC

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Sreeni Prabhu, Chief Executive Officer, President
Mr. Prabhu has served as Chief Executive Officer and President of Angel Oak Mortgage REIT since September 2022. He is also a co-founder, Managing Partner, and Group Chief Investment Officer at Angel Oak Capital, where he is responsible for the overall investment strategy. Prior to co-founding Angel Oak, Mr. Prabhu served as the Chief Investment Officer of the investment portfolio at Washington Mutual Bank in Seattle from 2005 to 2008. Before that, from 2001 to 2005, he worked at SunTrust Bank in Atlanta, managing investment strategies and serving as Head Portfolio Manager for its commercial mortgage-backed securities portfolio. He began his career at SunTrust in 1998 as a Bank Analyst.

Brandon Filson, Chief Financial Officer, Treasurer
Mr. Filson is the Chief Financial Officer and Treasurer at Angel Oak Mortgage REIT, Inc., overseeing the firm's finance and accounting activities. He brings over 15 years of experience in accounting and financial roles. Before joining Angel Oak in 2018, Mr. Filson was the Vice President and Real Estate Controller of iStar Inc. (NYSE: STAR) and Safehold Inc. (NYSE: SAFE), both publicly traded REITs, from April 2013 to April 2018. He also gained experience in financial services assurance practices at Grant Thornton LLP from 2008 to 2013 and KPMG LLP from 2006 to 2008.

Namit Sinha, Chief Investment Officer, Private Strategies of Angel Oak Capital Advisors
Mr. Sinha serves as a Managing Director and Chief Investment Officer of the private strategies at Angel Oak Capital. His focus is on managing non-qualified mortgage and commercial investments for the firm.

KC Kelleher, Head of Corporate Finance and Investor Relations
Mr. Kelleher is the Head of Corporate Finance and Investor Relations at Angel Oak Mortgage REIT, Inc. In this role, he is responsible for long-term financial planning, forecasting, and managing investor relations.

Chris Price, CPA, Controller, Head of SEC Reporting
Mr. Price serves as the Controller and Head of SEC Reporting at Angel Oak Mortgage REIT, Inc. He is responsible for overseeing the firm's accounting and financial reporting functions.

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The key risks for Angel Oak Mortgage REIT (AOMR) are primarily centered around its specialized investment strategy and the broader macroeconomic environment.

1. Interest Rate Risk and Fair Value Volatility: As a mortgage REIT, AOMR's business is highly sensitive to changes in interest rates. Fluctuations in benchmark interest rates can significantly impact the fair value of its assets, liabilities, and derivatives, leading to reduced earnings, increased earnings volatility, and volatility in its book value. Rising interest rates also directly increase the cost of the company's borrowings, further affecting profitability. Additionally, the fair values of its assets, particularly illiquid ones, can be challenging to estimate and may experience rapid and substantial changes.
2. Credit Risk of Non-Qualified Mortgage (Non-QM) Loans: Angel Oak Mortgage REIT focuses on acquiring and investing in first lien non-qualified mortgage loans and other mortgage-related assets. These non-QM loans are considered inherently riskier than traditional mortgages. A decline in the housing market or an increase in borrower defaults on these loans could lead to significant financial losses for AOMR. The company has previously incurred "sizable losses" from selling non-QM loans due to market volatility, and there have been mentions of rising delinquency rates on securitized loans.
3. Securitization Market Dysfunction and Liquidity Risk: AOMR's financing strategy heavily relies on the securitization market to fund its assets and generate capital for new investments. Illiquidity or dislocation within the securitization market can severely limit the company's access to permanent financing, thereby impeding its ability to acquire new loans and manage its portfolio effectively. This reliance on a functioning securitization market is critical for AOMR's operational efficiency and growth.

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Angel Oak Mortgage REIT (AOMR) primarily focuses on acquiring and investing in first lien non-qualified mortgage (non-QM) loans and other mortgage-related assets within the U.S. mortgage market. The addressable markets for their main products and services are as follows:

Non-Qualified Mortgage (Non-QM) Loans

• The non-QM market constituted approximately 5% of total U.S. mortgage originations in 2024.
• In July 2025, non-QM loans reached a record-setting 8.0% share of total U.S. mortgage volume, within a broader non-conforming loan category that reached 16.8% of total volume.
• Industry leaders have predicted that the non-QM sector's market share could eventually reach 10% of total first-lien originations in the U.S.
• Annual non-agency, non-QM residential mortgage-backed securities (RMBS) issuance was reported at $66 billion for the previous year (likely 2023).
• S&P Global forecasts that non-QM loans will comprise nearly 30% of non-agency mortgage-backed securities in 2025.

Mortgage-Backed Securities (MBS)

• The U.S. mortgage-backed securities market has over $11 trillion in outstanding securities.
• This market also sees an average daily trading volume of approximately $300 billion in the U.S.
• The global Mortgage-Backed Securities market is estimated at USD 15.55 trillion in 2025 and is projected to grow to USD 22.43 trillion by 2030, with North America holding the largest market share.
• U.S. mortgage-backed securities issuance reached $1,536.7 billion year-to-date as of October 2025.

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Angel Oak Mortgage REIT (AOMR) is positioned for future revenue growth over the next 2-3 years, driven by several strategic initiatives and market dynamics:

1. Continued Growth in Net Interest Income from Non-QM Loans: The company's core business involves acquiring and investing in first-lien non-qualified mortgage (non-QM) loans. AOMR reported a 13% year-over-year increase in net interest income in Q3 2025, with management anticipating this growth trend to persist due to the purchase of accretive loans throughout the year.
2. Strategic Capital Redeployment and Securitization Activities: AOMR actively manages its portfolio by calling and retiring legacy securitizations, then redeploying the released capital into higher-yielding assets. The successful execution of new securitizations, such as the $274 million AOMT 2025-10 securitization in October 2025, which freed up $22 million in cash for redeployment, further supports portfolio expansion and earnings. The company also expects to pursue programmatic securitization and resecuritization, including a potential HELOC securitization, to diversify funding and optimize its capital structure.
3. Improved Loan Financing and Diversified Lender Base: Management has focused on reducing loan financing funding costs and expanding its network of lenders. This includes establishing new warehouse credit facilities at attractive rates, which helps lower interest expenses and provides stable funding for portfolio growth.
4. Focus on High-Yielding, Income-Accretive Investments: AOMR's strategy emphasizes disciplined capital deployment into high-quality, income-accretive opportunities within its non-QM loan portfolio. This selective approach aims to maximize returns and ensure sustainable earnings growth.
5. Enhanced Cost Efficiency: While not a direct revenue driver, AOMR's efforts to reduce operating expenses contribute positively to its net income and allow for more capital to be reinvested into revenue-generating assets. The company achieved a 13% reduction in operating expenses (excluding securitization costs and stock compensation) compared to Q3 2024, with expectations to maintain these efficient expense levels.

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Share Issuance

• Between December 31, 2024, and September 30, 2025, the number of common shares issued and outstanding increased from 23,500,175 to 24,914,035, indicating an issuance of 1,413,860 shares during this period.
• In May 2025, Angel Oak Mortgage REIT, Inc. issued $42.5 million in aggregate principal amount of 9.750% Senior Notes due 2030, with net proceeds of approximately $40.6 million.
• The company has common stock available for issuance under an At-The-Market (ATM) Program and Sales Agreement.

Outbound Investments

• During the second quarter of 2025, Angel Oak Mortgage REIT purchased $146.6 million of newly-originated, current market coupon non-qualified residential mortgage loans and home equity lines of credit (HELOC).
• In October 2025, the company issued AOMT 2025-10, an approximately $274.3 million securitization backed by residential mortgage loans, with $22.1 million of cash released intended for new loan purchases and operational purposes.
• In May 2025, the company contributed $87.2 million of loans to the AOMT 2025-6 securitization, with $9.2 million of cash released used for operational purposes.