Angel Oak Mortgage Reit, Inc. · NYSE:AOMR
Angel Oak Mortgage Reit — Q1 2025 Earnings Presentation
28 slides from Angel Oak Mortgage Reit's earnings presentation, May 5, 2025
Slide 1: First Quarter 2025 Earnings Supplement
Angel Oak Mortgage REIT, Inc. First Quarter 2025 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
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Slide 4: Financial Results
Financial Results
Slide 5: Financial Results
Financial Results 18% Net Interest Income growth vs. Q1 2024, GAAP and Economic Book Value! increase of 5.2% and 2.4%, respectively, vs. Q4 2024 Q1 25 Net Interest Income (“NII”) Q1 25 GAAP & Distributable Earnings per Share (“EPS”)? Q1 25 GAAP / Economic Book Value (“BV”) Dividend Q1 2025 NII of $1
Slide 6: Net Interest Income and Average Asset Balances
Net Interest Income and Average Asset Balances $000s Interest Income Residential Mortgage Loans Residential Mortgage Loans in Securitization Trust Commercial Mortgage Loans RMBS and Majority-Owned Affiliate CMBS US Treasury Securities Other Interest Income Total Interest Income Interest Expense Note
Slide 7: Recourse Debt to Equity Trend
Recourse Debt to Equity Trend KEY COMMENTARY =~ As of March 31, 2025, our Recourse Debt to Equity Ratio was approximately 2.3x - Subsequent to quarter end, we used the proceeds of the AOMT 2025-4 securitization to pay down $242MM of recourse warehouse financing and replaced it with non-recourse leve
Slide 8: AOMR 2025-4 Securitization
AOMR 2025-4 Securitization In April, AOMR was the sole participant in the $284.3MM AOMT 2025-4 securitization and contributed loans with a 7.50% Weighted Average Coupon 2025-4 Securitization Details at Issuance Class Total Balance Balance Sold Initial Coupon Fair Market Value AL $208,257,000 $208,25
Slide 9: Target Asset Composition
Target Asset Composition Target Asset Composition! ($ millions) 2,033 Q4 2023 Q1 2024 Q2 2024 Q3 2024 @ Residential Whole Loans @ Residential Loans in Securitization Trust G@RMBS & Investment in MOA 2,184 Q4 2024 Q1 2025 Key Commentary Whole loan purchases drove the majority of the increase in total
Slide 10: GAAP Book Value per Share
GAAP Book Value per Share GAAP Book Value Change Drivers $10.55 $0.85 $10.70 & Highlights $0.58 $10.17 = GAAP Book Value increased by $0.53, or 5.2%, as of the end of Q1 ($0.32) 2025 versus the end of Q4 2024, ($0.96) and by $0.15, or 1.5% versus the end of Q1 2024 = Change in GAAP Book Value per Sh
Slide 11: Economic Book Value
Economic Book Value $13.78 Economic Book Value Growth Drivers & Highlights $0.63 $13.41 = Economic Book Value ? increased $0.28 $13.10 by $0.31, or 2.4%, as of the end of | Q1 2025 versus the end of Q4 2024, and decreased by $0.37, or 0.96 2 2 is ) ($0.32) (2.7%), versus the end of Q1 2024 = Change
Slide 12: Distributable Earnings
Distributable Earnings Three Months Ended March 31, 2025 March 31, 2024 (in thousands) Net income (loss) allocable to common stockholders $ 20,531 $ 12,874 Adjustments: Net unrealized (gains) losses on trading securities 1,032 el Net unrealized (gains) losses on derivatives 1,042 (445) Net unrealize
Slide 13: Statistics
Statistics
Slide 14: Loan Coupon Rate and Credit Score Distributions
0 50 100 150 200 250 300 # o f Lo an s Coupon Rate (%) 0 50 100 150 200 # o f Lo an s Credit Score
Slide 15: Key Portfolio Statistics: Residential Loans by Product Type Detail
Key Portfolio Statistics: Residential Loans by Product Type Detail Residential Loans by Product Closed-End Seconds & HELOCs, 3%. Borrowers, 54% Just Missed Prime, 8% Weighted Average LTV by Product? Weighted Average Credit Score by Product? —FD —ICF ——BS Weighted Average Coupon by 75% 9.0% Product?
Slide 16: Geographic Concentration of Loans
CA, 33% FL, 22% TX, 7% GA, 3% Other, 35%
Slide 17: Geographic Concentration of Loans
CA, 36% FL, 21% TX, 8%GA, 4% Other, 32%
Slide 18: Appendix
Slide 19: 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 20: 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 21: 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 22: Income Statement (Unaudited)
Income Statement (Unaudited) (in thousands) INTEREST INCOME, NET Interest income Interest expense NET INTEREST INCOME REALIZED AND UNREALIZED GAINS(LOSSES), NET Net realized gain (loss) on mortgage loans, derivative contracts, RMBS, and CMBS Net unrealized gain (loss) on trading securities, mortgage
Slide 23: Consolidated Balance Sheet (Unaudited)
Consolidated Balance Sheet (Unaudited) ASSETS Residential mortgage loans - at fair value Residential mortgage loans in securitization trusts - at fair value Commercial mortgage loans - at fair value RMBS - at fair value U.S. Treasury securities - at fair value Cash and cash equivalents Restricted ca
Slide 24: Appendix: Consolidated Balance Sheet Cont. (Unaudited)
Appendix: Consolidated Balance Sheet Cont. (Unaudited) As of: March 31, 2025 December 31, 2024 LIABILITIES AND STOCKHOLDERS’ EQUITY (in thousands, except for share data) LIABILITIES Notes payable $ 360,470 $ 129,459 Non-recourse securitization obligations, collateralized by residential loans in secu
Slide 25: Appendix: GAAP Reconciliation of Distributable Earnings (Unaudited)
Appendix: GAAP Reconciliation of Distributable Earnings (Unaudited) Three Months Ended March 31, 2025 March 31, 2024 (in thousands) Net income (loss) allocable to common stockholders $ 20,531 $ 12,874 Adjustments: Net unrealized (gains) losses on trading securities 1,032 1 Net unrealized (gains) los
Slide 26: Appendix: GAAP Reconciliation of Economic Book Value (Unaudited)
Appendix: GAAP Reconciliation of Economic Book Value (Unaudited) March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 in thousands, except for share and per share data GAAP total stockholders’ equity 251,480 238,967 265,098 255,806 263,324 Adjustments: Fair value adjustme
Slide 27: Condensed Income Statement History (Unaudited)
Condensed Income Statement History (Unaudited) (in thousands) 1023 2023 3023 4023 FY23 1024 2024 3024 4024 FY26 1025 Interest Income 23,740 23,763 23,900 24,550 95,953 25,212 25,902 27.444 31,869 110,427 32,867 Interest Expense 16,961 17311 16.490 16,310 67,052 16,633 16.439 18.424 22,007 73,502 22,
Slide 28: Balance Sheet History (Unaudited)
Balance Sheet History (Unaudited) (in thousands) 4022 1023 2023 3023 4023, 1024 2024 3024 4Q24 1925 Assets: Residential Mortgage Loans - at fair value 770,982 544,436 296,529 284,383 380,040 368,446 158,940 428,909 183,064 439,460 Residential mortgage loans in securitization trusts - at fair value 1
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