Angel Oak Mortgage, Inc. Charts Path Forward with Non-Mark-to-Market Financing and Provides Updated Book Value Estimate

Angel Oak Mortgage, Inc. (NYSE: AOMR) (the “Company,” “we,” and “our”), a leading real estate finance company focused on acquiring and investing in first lien non-QM loans and other mortgage-related assets in the U.S. mortgage market, today announced the conversion of approximately $286 million of mark-to-market debt to non-mark-to-market financing for all continually performing loans. This, in combination with the loan sale disclosed on November 23, 2022, is part of the go-forward strategy outlined in the Company’s third quarter earnings call held on November 9, 2022.

As a result of the financing conversion and previously announced loan sale, the Company will have reduced its outstanding warehouse debt by nearly 30%, decreased its mark-to-market percentage of total warehouse debt by over 40%¹, released approximately $35 million of additional capital and liquidity, and increased the weighted average coupon of its remaining residential whole loan portfolio by approximately 10 basis points.

Sreeni Prabhu, Chief Executive Officer and President of the Company, commented, “We are pleased with these positive developments in our strategic plan to reposition our portfolio, improve liquidity, reduce risk, and protect our capital structure. Going forward, we plan to leverage the distinct competitive advantage provided by our affiliated non-QM mortgage origination platform by increasing purchases of high-yielding loans while preparing for an expected return to the securitization market. This has historically generated attractive risk-adjusted returns which we believe will enable us to maximize shareholder value.”

As of November 30, 2022, the Company estimates that its GAAP book value was between $9.35 and $9.45 per share of common stock. Economic Book Value, which includes valuations of all securitization obligations at fair value, is estimated to have been between $12.70 and $12.80 per share of common stock. These estimates compare to a GAAP Book Value of $10.63 and Economic Book Value of $12.93 as of September 30, 2022.

The above estimates reflect the perspectives and assumptions of AOMR management based on market trends and information currently available to them. Management has not yet completed procedures to verify the completeness and accuracy of this information, and these estimates have not been audited or reviewed by any third party.

¹ Mark-to-market percentage of total warehouse debt is calculated as the total estimated unpaid balance of mark-to-market warehouse financing divided by the total estimated unpaid balance of all warehouse financing.