Slide 1: Fourth Quarter & Fiscal Year 2024 Earnings Supplement
Angel Oak Mortgage REIT, Inc. Fourth Quarter & Fiscal Year 2024 Earnings Supplement
Slide 2: Important Notices
Important Notices References herein to our “Company,” “AOMR,” “we,” “us,” or “our” refer to Angel Oak Mortgage REIT, Inc. and its subsidiaries, including Angel Oak Mortgage Operating Partnership, LP (the “Operating Partnership”), unless the context requires otherwise. Unless otherwise indicated, the
Slide 3: Important Notices
Important Notices the effects of adverse conditions or developments in the financial markets and the economy upon our ability to acquire target assets such as non-qualified residential mortgage (“non- QM”) loans, particularly those sourced from Angel Oak's proprietary mortgage lending platform, Ange
Slide 4: Highlights & Financial Results
Highlights & Financial Results
Slide 5: Financial Results
Financial Results 28% year over year growth in Net Interest Income, 10% year over year reduction in Operating Expense excluding Securitization Expense KEY COMMENTARY FY 2024 NII of $36.9MM versus | + Net Interest Income of $36.9MM for 2024 reflects a 28% increase versus FY 2023 NII of $28.9MM, an ex
Slide 6: Net Interest Income and Average Asset Balances
Net Interest Income and Average Asset Balances 2024 2023 $000s Interest Income / Expense Average Balance Interest Income / Expense Average Balance Interest Income Residential Mortgage Loans $ 18,677 $ 271,658 $ 23,951 $ 443,781 Residential Loans in Securitization Trust 74,757 1,441,354 54,494 1,128,
Slide 7: Recourse Debt to Equity Trend
Recourse Debt to Equity Trend KEY COMMENTARY = As of December 31, 2024, our Recourse Debt to Equity Ratio is approximately 1.0x. - AOMT 2024-10 and AOMT 2024-13 paid down approximately $401.9 million of recourse warehouse financing and replaced it with non-recourse structural leverage - Our Recourse
Slide 8: AOMR 2024-10 Securitization
AOMR 2024-10 Securitization In October, AOMR was the sole participant in the $316.8MM AOMT 2024-10 securitization and contributed loans with a 7.79% Weighted Average Coupon 2024-10 Securitization Details at Issuance Class Total Balance Balance Sold Initial Coupon Fair Market Value AL $236,307,000 $2
Slide 9: AOMR 2024-13 Securitization
AOMR 2024-13 Securitization In December, AOMR participated in the $288.9MM AOMT 2024-13 securitization with such contributed loans having a 7.37% Weighted Average Coupon 2024-13 Securitization Details at Issuance Class Total Balance Balance Sold Initial Coupon Fair Market Value Al $212,596,000 $212,
Slide 10: Target Asset Composition
Target Asset Composition Target Asset Composition’? ($ millions) Key Commentary + Whole loan purchases drove the majority of the increase in total Target Assets in 2024 versus 2023 + Residential Whole Loans and Residential Loans in Securitization Trusts balance increased by $279MM in 2024 versus 202
Slide 11: GAAP Book Value per Share
GAAP Book Value per Share $1.98 $11.28 $10.26 ($0.96) 12/31/2023 Dividends Q42023- 9/30/2024 BV throughQ3 —Q3 2024 BV BV 2024 Change? Note: All Book Value statistics represented on a per share basis + Excluding quarterly dividend impact & Angel Oak Mortgage REIT, Inc. Ne ($0.32) Q4 2024 Dividend ($0
Slide 12: Economic Book Value
Economic Book Value $1.44 $14.02 $13.54 ($0.32) $13.10 ($0.60) ($0.96) 12/31/2023 Dividends Q42023- 9/30/2024 Q4 2024 Q4 2024 Q4 2024 EBV through Q3 Q3 2024 EBV Dividend EBV Change EBV 2024 EBV Change? Economic Book Value reflects the impact of fair value changes for retained bonds associated with l
Slide 13: Distributable Earnings
Distributable Earnings Three Months Ended December 31, 2024 December 31, 2023 December 31, 2024 (in thousands) Twelve Months Ended December 31, 2023 Net income (loss) allocable to common stockholders $ (15,055) $ 28,599 $ 28,750 $ 33,714 Adjustments: Net unrealized (gains) losses on trading securiti
Slide 14: Statistics
Statistics
Slide 15: Loan Portfolio Statistics
0 40 80 120 # o f Lo an s Coupon Rate (%) 0 50 100 # o f Lo an s Credit Score Full Documentation and Other Loans, 11% Investor Loans, 24% Loans Made to Bank Statement Borrowers, 65% FL, 16% CA, 28% GA, 5% TX, 8% NY, 8%NJ, 4% Other, 35%
Slide 16: Loan Type Breakdown
Investor Loans, 24% Just Missed Prime, 11% Loans Made to Bank Statement Borrowers, 65%
Slide 17: Geographic Breakdown
FL, 22% CA, 33% TX, 7% GA, 4% Other, 35%
Slide 18: Geographic Breakdown
FL, 21% CA, 35% TX, 8%GA, 4% Other, 32%
Slide 19: Appendix
Slide 20: The AOMR Model
The AOMR Model AOMR seeks to generate strong risk-adjusted returns and long-term capital appreciation to deliver attractive total economic return to our shareholders Loan Acquisition Securitization Financing Growing Book Value Source and purchase high-quality, non-QM loans leveraging the infrastruct
Slide 21: AOMR Investment Strategy
AOMR Investment Strategy Our acquisition, securitization, and reinvestment processes enable us to consistently deliver on our business model + AOMR’s relationship with Angel Oak * Securitization enables us to: Companies enables AOMR to purchase high-quality loans tailored to its ‘ fi — Secure a fixe
Slide 22: Illustrative Securitization Structure
Illustrative Securitization Structure Senior Bonds (AAA, AA, A rating) Mezzanine Bonds (BBB, BB, B rating) Junior Equity (unrated) Interest Only s V) Angel Oak Mortgage REIT, Inc. o p. ~85-90% of the deal ~5-10% of the deal ~0 - 10% of the deal KEY CHARACTERISTICS Senior and mezzanine bonds receive
Slide 23: Appendix: Income Statement (Unaudited)
Appendix: Income Statement (Unaudited) For the Three Months Ended For the Three Months Ended For the Twelve Months Ended For the Twelve Months Ended (in thousands) December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 INTEREST INCOME, NET Interest income $ 31,869 $ 24,550 $ 110,427
Slide 24: Appendix: Consolidated Balance Sheet (Unaudited)
Appendix: Consolidated Balance Sheet (Unaudited) As of: December 31, 2024 December 31, 2023 (in thousands, except for share data) ASSETS Residential mortgage loans - at fair value $ 183,064 $ 380,040 Residential mortgage loans in securitization trusts - at fair value 1,696,995 1,221,067 RMBS - at fa
Slide 25: Appendix: Consolidated Balance Sheet Cont. (Unaudited)
Appendix: Consolidated Balance Sheet Cont. (Unaudited) As of: December 31, 2024 December 31, 2023 (in thousands, except for share data) LIABILITIES AND STOCKHOLDERS’ EQUITY LIABILITIES Notes payable $ 129,459 $ 290,610 Non-recourse securitization obligations, collateralized by residential loans in s
Slide 26: Appendix: GAAP Reconciliation of Distributable Earnings (Unaudited)
Appendix: GAAP Reconciliation of Distributable Earnings (Unaudited) Three Months Ended Twelve Months Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 (in thousands) Net income (loss) allocable to common stockholders $ (15,055) $ 28,599 $ 28,750 $ 33,714 Adjustments: Net
Slide 27: Appendix: GAAP Reconciliation of Economic Book Value (Unaudited)
Appendix: GAAP Reconciliation of Economic Book Value (Unaudited) December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 in thousands, except for share and per share data GAAP total stockholders’ equity 238,967 265,098 255,806 263,324 256,106 Adjustments: Fair value adjus
Slide 28: Condensed Income Statement History (Unaudited)
Condensed Income Statement History (Unaudited) (in thousands) Fy22 1023 2023 3023 4023 FY23 1024 2024 3024 4026 FY26 Interest Income 115,544 23,740 23,763 23,900 24,550 95,953 25,212 25,902 27.444 31,869 110,427 Interest Expense 63,024 16.941 730 16,490 16,310 67,052 16,633 16,439 18.424 22,007 73,5
Slide 29: Balance Sheet History (Unaudited)
Balance Sheet History (Unaudited) (Gn thousands) 4022 1023 2023 3023 4023 1024 2024 3024 4024 Assets: Residential Mortgage Loans - at fair value 770,982 544,436 296,529 284,383 380,040 368,446 158,940 428,909 183,064 Residential mortgage loans in securitization trusts - at fair value 1,027,442 1,028