Angel Oak Mortgage REIT, Inc.

Previous wording

•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, including those sourced from Angel Oak’s proprietary mortgage lending platform, Angel Oak Mortgage Lending;

Current wording

•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, Angel Oak Mortgage Lending;

Previous wording

•events, contemplated or otherwise, such as acts of God, including hurricanes, wildfires, earthquakes, and other natural disasters, including those resulting from global climate change, pandemics, acts of war or terrorism, the initiation or escalation of military conflicts, and others that may cause unanticipated and uninsured performance declines, disruptions in markets, volatility in prevailing interest rates, and/or losses to us or the owners and operators of the real estate securing our investments;

Current wording

•events, contemplated or otherwise, such as acts of God, including hurricanes, wildfires, earthquakes, and other natural disasters, including those resulting from global climate change, pandemics, acts of war or terrorism, the initiation or escalation of military conflicts, and others that may cause unanticipated and uninsured performance declines, disruptions in markets, and/or losses to us or the owners and operators of the real estate securing our investments;

Previous wording

During the first quarter of 2026, the U.S. Federal Reserve Bank (the “Fed”) maintained a generally neutral policy stance following the easing cycle of late 2025. Monetary policy in the quarter reflected continued confidence in moderating inflationary pressures and a gradually cooling, yet resilient, U.S. economy. While broader macroeconomic conditions were more constructive than in the prior year, uncertainty and volatility persisted throughout the quarter, driven by incoming inflation and employment data as well as shifting market expectations regarding the timing of any future policy actions. Additionally, the conflict in Iran added to the rate volatility late in the first quarter of 2026. As such, the Fed left the federal funds rate unchanged at 3.50% - 3.75% as of the end of the first quarter of 2026. Overall, the interest rate environment during the first quarter of 2026 remained supportive for prospective homebuyers relative to recent years. In parallel, securitization markets continued to demonstrate healthy activity, supported by constructive execution spreads and steady investor demand. Current expectations remain for a relatively stable interest rate environment through the balance of 2026, assuming continued progress on inflation and sustained, albeit moderating, economic growth.

Current wording

During the second quarter of 2026, the U.S. Federal Reserve Bank (the “Fed”) maintained its target range for the federal funds rate at 3.50% - 3.75%, extending the neutral-to-restrictive policy stance that followed the easing cycle of late 2025. Monetary policy during the quarter remained highly data-dependent, as the Fed balanced solid economic activity and a relatively stable labor market against inflation that remained above its long-term objective. Market expectations shifted more hawkish over the course of the quarter, particularly following the June Federal Open Market Committee meeting, as updated projections reduced expectations for near-term rate cuts and increased attention on the potential for rates to remain higher for longer. Geopolitical uncertainty, including the conflict in Iran and related volatility in energy markets, continued to contribute to interest rate volatility during the quarter. Overall, while the interest rate environment remained more constructive for prospective homebuyers than the elevated levels observed in prior years, the second quarter was characterized by renewed uncertainty around the path of monetary policy and inflation. In parallel, securitization markets remained active, supported by continued investor demand, although execution levels were influenced by broader rate volatility and modest spread movements. Current expectations remain for a relatively stable, but more cautious, interest rate environment through the balance of 2026, assuming inflation moderates and economic growth remains resilient.

Previous wording

Residential mortgage rates moved broadly in line with Treasury yields during the first quarter of 2026, remaining below levels observed throughout much of 2024 and early 2025. Mortgage market activity showed continued signs of improvement, with borrower engagement supported by greater rate stability and improved affordability relative to the prior year. Residential mortgage rates, along with securitization spreads, remain key benchmarks for the valuation of our portfolio; though the generally lower rate environment was a positive contributor to asset pricing, macroeconomic volatility drove spreads wider, leading to an overall decrease in asset pricing during the quarter. Continued purchases of newly originated loans, together with ongoing securitizations of recently originated collateral, supported earnings growth across our residential whole loan and loans held within securitization trusts portfolios. We expect continued acquisition of newly originated loans throughout 2026, which should further support portfolio performance and securitization execution in a constructive capital markets environment.

Current wording

Residential mortgage rates moved broadly in line with Treasury yields during the second quarter of 2026, with periods of volatility limiting the pace of improvement in affordability. Mortgage market activity continued to show signs of stabilization, supported by greater borrower engagement relative to the prior year, although rate sensitivity remained an important factor for loan demand and prepayment expectations. Residential mortgage rates, along with securitization spreads, remain key benchmarks for the valuation of our portfolio; as such, volatility and spread movements throughout the quarter created generally negative valuation impacts. Continued purchases of newly originated loans supported interest income growth in the second quarter, and we expect to continue to acquire newly originated loans throughout 2026, which should further support portfolio performance and securitization execution.

Previous wording

Net Interest Margin (“NIM”). We generated $7.8 million greater interest income for the quarter ended March 31, 2026 compared to the comparable period for 2025, driven by increases in the amount of our target assets. Interest expense increased by $5.8 million for the quarter ended March 31, 2026 compared to the comparable period for 2025, due to new asset purchases and securitizations, collateralized by residential mortgage loans in securitization trusts as well as our 9.750% Senior Notes due 2030 (“2030 Notes”) issued in May 2025. Overall, the increase in our interest income outpaced the increase in interest expense and drove a 20%, or $2.0 million, increase in net interest income for the quarter ended March 31, 2026 compared to the comparable period for 2025.

Current wording

Net Interest Margin (“NIM”). We generated $6.3 million greater interest income for the quarter ended June 30, 2026 compared to the comparable period for 2025, driven by increases in the amount of our target assets. Interest expense increased by $5.5 million for the quarter ended June 30, 2026 compared to the comparable period for 2025, due to new asset purchases and securitizations, collateralized by residential mortgage loans in securitization trusts as well as our 9.750% Senior Notes due 2030 (“2030 Notes”) issued in May 2025. Overall, the increase in our interest income outpaced the increase in interest expense and drove a 8%, or $0.8 million, increase in net interest income for the quarter ended June 30, 2026 compared to the comparable period for 2025.

Previous wording

Net realized loss. Our net realized loss for the quarter ended March 31, 2026 was primarily due to realized losses associated with the unamortized premium of loans that paid off underlying our residential loans in securitization trust and RMBS portfolio as well as realized losses associated with hedging activity.

Current wording

Net realized gain. Our net realized gain for the quarter ended June 30, 2026 was primarily due to realized gains associated with our hedging activity, offset by realized losses associated with the unamortized premium of loans that paid off underlying our residential loans in securitization trust and RMBS portfolios.

Previous wording

Net unrealized loss. Our net unrealized loss for the quarter ended March 31, 2026 was primarily due to a decrease in the valuation of our loans in securitization trust, net of non-recourse securitization obligation and residential whole loans portfolios.

Current wording

Net unrealized loss. Our net unrealized loss for the quarter ended June 30, 2026 was primarily due to a decrease in the valuation of our loans in securitization trust, net of non-recourse securitization obligation and residential whole loans portfolios, as well as unrealized losses associated with our hedging activity as of the end of the quarter ended June 30, 2026.

Previous wording

During the quarter ended March 31, 2026, we purchased $246.2 million of newly-originated, current market coupon non-QM residential mortgage loans, with a weighted average coupon of 7.34%, weighted average combined loan-to-value ratio (“CLTV”) of 67.1% and weighted average credit score of 759.

Current wording

During the quarter ended June 30, 2026, we purchased $204 million of newly-originated, current market coupon non-QM residential mortgage loans and home equity lines of credit (“HELOCs”), with a weighted average coupon of 7.34%, weighted average combined loan-to-value ratio (“CLTV”) of 70.5% and weighted average credit score of 759.

Previous wording

We continuously evaluate our lender base and may enter into new agreements and / or exit agreements as we deem prudent, in accordance with our core financial strategy of purchasing whole loans and financing them until securitized. See “Liquidity and Capital Resources” below, for a full description of our financing arrangements. Our total borrowing capacity was $1.3 billion as of March 31, 2026 Highlights of whole loan financing facilities activity over the first quarter of 2026 are as follows:

Current wording

We continuously evaluate our lender base and may enter into new agreements and / or exit agreements as we deem prudent, in accordance with our core financial strategy of purchasing whole loans and financing them until securitized. See “Liquidity and Capital Resources” below for a full description of our financing arrangements. Our total borrowing capacity was $1.3 billion as of June 30, 2026. Highlights of whole loan financing facilities activity over the second quarter of 2026 are as follows:

Previous wording

Distributable Earnings were approximately a gain of $4.6 million and a gain of $4.1 million for the three months ended March 31, 2026 and 2025, respectively. The primary drivers of this quarter’s Distributable Earnings as compared to GAAP net income are the adjustments to remove unrealized losses associated with our residential loans and residential loans in securitization trusts and non-recourse securitization obligation portfolios.

Current wording

Distributable Earnings were a gain of $9.0 million and a gain of $2.6 million for the three months ended June 30, 2026 and 2025, respectively. The primary drivers of the difference of Distributable Earnings as compared to GAAP net income in the quarter ended June 30, 2026 were adjustments to remove unrealized losses on residential loans, residential loans in securitization trusts and non-recourse securitization obligation, and derivatives portfolios. For the quarter ended June 30, 2025, the primary driver of the difference between Distributable Earnings and GAAP net income was the adjustment to remove losses on our residential loans portfolio. For the six months ended June 30, 2026 and June 30, 2025, the primary drivers of the difference between Distributable Earnings and GAAP net income were adjustments to remove unrealized losses on residential loans and residential loans in securitization trusts and non-recourse securitization obligation, and adjustments to remove unrealized gains on residential loans in securitization trusts and non-recourse securitization obligation, respectively.

Previous wording

The table below sets forth a reconciliation of net income (loss) allocable to common stockholders, calculated in accordance with GAAP, to Distributable Earnings for the three months ended March 31, 2026 and 2025:

Current wording

The table below sets forth a reconciliation of net income (loss) allocable to common stockholders, calculated in accordance with GAAP, to Distributable Earnings for the three and six months ended June 30, 2026 and 2025:

Previous wording

Distributable Earnings Return on Average Equity is a non-GAAP measure and is defined as annual or annualized Distributable Earnings divided by average total stockholders’ equity. We believe that the presentation of Distributable Earnings Return on Average Equity provides investors with a useful measure to facilitate comparisons of financial performance among our REIT peers, but has important limitations. Additionally, we believe Distributable Earnings Return on Average Equity provides investors with additional detail on the Distributable Earnings generated by our invested equity capital. We believe Distributable Earnings Return on Average Equity as described above helps evaluate our financial performance without the impact of certain transactions but is of limited usefulness as an analytical tool. Therefore, Distributable Earnings Return on Average Equity should not be viewed in isolation and is not a substitute for net income computed in accordance with GAAP. Our methodology for calculating Distributable Earnings Return on Average Equity may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and as a result, our Distributable Earnings Return on Average Equity may not be comparable to similar measures presented by other REITs. Set forth below is our computation of Distributable Earnings Return on Average Equity for the three months ended March 31, 2026 and 2025:

Current wording

Distributable Earnings Return on Average Equity is a non-GAAP measure and is defined as annual or annualized Distributable Earnings divided by average total stockholders’ equity. We believe that the presentation of Distributable Earnings Return on Average Equity provides investors with a useful measure to facilitate comparisons of financial performance among our REIT peers, but has important limitations. Additionally, we believe Distributable Earnings Return on Average Equity provides investors with additional detail on the Distributable Earnings generated by our invested equity capital. We believe Distributable Earnings Return on Average Equity as described above helps evaluate our financial performance without the impact of certain transactions but is of limited usefulness as an analytical tool. Therefore, Distributable Earnings Return on Average Equity should not be viewed in isolation and is not a substitute for net income computed in accordance with GAAP. Our methodology for calculating Distributable Earnings Return on Average Equity may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and as a result, our Distributable Earnings Return on Average Equity may not be comparable to similar measures presented by other REITs. Set forth below is our computation of Distributable Earnings Return on Average Equity for the three and six months ended June 30, 2026 and 2025:

Previous wording

We generated $7.8 million greater interest income for the quarter ended March 31, 2026 compared to the comparable period for 2025, driven by increases in the amount of our target assets. Interest expense increased by $5.8 million for the quarter ended March 31, 2026 compared to the comparable period for 2025, due to new asset purchases and securitizations, collateralized by residential mortgage loans in securitization trusts as well as our 2030 Notes issued in May 2025. Overall, this increase in interest expense was mitigated by lower average borrowing costs. Overall, the increase in our interest income outpaced the increase in interest expense and drove a 20%, or $2.0 million, increase in net interest income for the quarter ended March 31, 2026 compared to the comparable period for 2025.

Current wording

We generated $6.3 million greater interest income for the quarter ended June 30, 2026 compared to the comparable period for 2025, driven by increases in the amount of our target assets. Interest expense increased by $5.5 million for the quarter ended June 30, 2026 compared to the comparable period for 2025, due to new asset purchases and securitizations, collateralized by residential mortgage loans in securitization trusts as well as our 2030 Notes issued in May 2025. Overall, the increase in our interest income outpaced the increase in interest expense and drove an 8%, or $0.8 million, increase in net interest income for the quarter ended June 30, 2026 compared to the comparable period for 2025.

Previous wording

For the three months ended March 31, 2026 and 2025, total realized and unrealized gains and (losses), net resulted in a net loss of ($14.3) million and a gain of $13.4 million, respectively. During the three months ended March 31, 2026, the ($11.2) million of realized and unrealized loss on securitization, net of unrealized gain (loss) on non-recourse securitization obligation and the ($4.0) million of realized and unrealized loss on our residential mortgage loan portfolio were the primary driver of the overall loss. These losses are substantially comprised of unrealized losses associated with valuation decreases in our securitization, net of unrealized gain (loss) on non-recourse securitization obligation and our residential mortgage loan portfolios, as well as realized losses associated with the loss of unamortized premiums in these portfolios. During the three months ended March 31, 2025, realized and unrealized gains on securitization, net of unrealized gain (loss) on non-recourse securitization obligation was the key drivers of the overall gain.

Current wording

For the three months ended June 30, 2026 and 2025, total realized and unrealized gains and (losses), net resulted in net losses of $(3.7) million and $(4.1) million, respectively. During the three months ended June 30, 2026, the $(4.1) million of realized and unrealized loss on securitization, net of unrealized gain (loss) on non-recourse securitization obligation was the primary driver of the overall loss. This loss is substantially comprised of unrealized loss due to valuation decreases and realized loss associated with the loss of unamortized premiums in the aforementioned portfolio. This was partially offset by a realized gain on RMBS of $0.5 million, which was primarily driven by the sale of retained bonds from the AOMT 2020-3 securitization. During the three months ended June 30, 2025, the $(1.1) million of realized and unrealized loss on securitization, net of unrealized gain (loss) on non-recourse securitization obligation, the $(1.1) million of realized loss on interest rate futures, and the $(1.2) million of realized and unrealized losses on residential mortgage loans were the key drivers of the overall loss.

Previous wording

For the three months ended March 31, 2026 and 2025, our operating expenses were $1.7 million and $1.2 million, respectively. Our operating expenses increased compared to the comparative period due to increases in audit and loan diligence fees associated with a larger overall balance in our target portfolio.

Current wording

For the three months ended June 30, 2026 and 2025, our operating expenses were $1.6 million and $1.3 million, respectively. Our operating expenses increased compared to the comparative period due to increases in audit and loan diligence fees associated with a larger overall balance in our target portfolio.

Previous wording

For the three months ended March 31, 2026 and 2025, our operating expenses incurred with affiliate were $0.6 million and $0.4 million, respectively. These expenses, which are substantially comprised of payroll reimbursements to our Manager, increased in the three months ended March 31, 2026 compared to the three months ended March 31, 2025 due to standard annual compensation increases.

Current wording

For the three months ended June 30, 2026 and 2025, our operating expenses incurred with affiliate were $0.6 million and $0.5 million, respectively. These expenses, which are substantially comprised of payroll reimbursements to our Manager, increased in the three months ended June 30, 2026 compared to the same period of 2025 due to standard annual compensation increases.

Previous wording

For the three months ended March 31, 2026 and 2025, our stock compensation expense was $0.4 million and $0.2 million, respectively. Our stock compensation expense increased for the three months ended March 31, 2026 due to the issuance of new performance based stock awards in 2025.

Current wording

For the three months ended June 30, 2026 and 2025, our stock compensation expense was $0.4 million and $0.3 million, respectively. Our stock compensation expense increased for the three months ended June 30, 2026 due to the issuance of new performance-based stock awards after the three months ended June 30, 2025.

Previous wording

For the three months ended March 31, 2026 and 2025, we incurred $1.4 million of securitization costs and no securitization costs, respectively. The securitization costs in the three months ended March 31, 2026 are associated with the AOMT 2026-2 securitization in March 2026, and there was no securitization activity in the three months ended March 31, 2025.

Current wording

For the three months ended June 30, 2026, we incurred no securitization costs. In the three months ended June 30, 2025, we incurred $1.9 million of securitization costs. We did not have any securitizations in the three months ended June 30, 2026. The expense in the three months ended June 30, 2025 is due to expenses associated with the AOMT 2025-4 and AOMT 2025-6 securitizations.

Previous wording

As of March 31, 2026, our portfolio consisted of approximately $2.7 billion of residential mortgage loans, RMBS, and other target assets. Certain of these portfolio assets are located in states such as Florida and California where natural disasters such as hurricanes, wildfires and earthquakes may occasionally occur. We require all of our collateral to be adequately insured. The graphs in the subsequent detail of residential mortgage loans, residential mortgage loans held in securitization trusts, and residential mortgage loans underlying RMBS issuances show the percentage of residential mortgage loans held in each state where there is a concentration of loans.

Current wording

As of June 30, 2026, our portfolio consisted of approximately $2.9 billion of residential mortgage loans, RMBS, and other target assets. Certain of these portfolio assets are located in states such as Florida and California where natural disasters such as hurricanes, wildfires and earthquakes may occasionally occur. We require all of our collateral to be adequately insured.

Previous wording

(1) Our Investment in Majority-Owned Affiliates is held at its amortized cost basis.

Current wording

(1) "Investments in Majority-Owned Affiliates” is held at amortized cost.

Previous wording

(2) Other assets and liabilities presented is calculated as a net liability substantially comprised of $129.4 million due to broker for our quarter-end purchase of certain Freddie Mac and Fannie Mae-issued Whole Pool Agency RMBS, and excluding the portion of “other assets” which includes our investment in Majority-Owned Affiliates, which is considered a target asset.

Current wording

(2) Other assets and liabilities presented is calculated as a net liability substantially comprised of $255.9 million due to broker for our quarter-end purchase of certain Freddie Mac and Fannie Mae-issued Whole Pool Agency RMBS, and excluding the portion of “other assets” which includes our investment in Majority-Owned Affiliates, which is considered a target asset.

Previous wording

The following chart illustrates the geographic distribution of the underlying collateral of our residential mortgage loans held in securitization trusts as of December 31, 2025 (percentages based on the aggregate unpaid principal balance of such loans):

Current wording

The following chart illustrates the geographic distribution of the underlying collateral of our residential mortgage loans held in securitization trusts as of June 30, 2026 (percentages are based on the aggregate unpaid principal balance of such loans):

Previous wording

(3) Represents the fair value of the securities we hold in the first loss tranche in each securitization.

Current wording

(2) Represents the fair value of the securities we hold in the first loss tranche in each securitization including the total at risk for the Majority-Owned Affiliates.

Previous wording

(4)The fair value of the first loss pieces presented for the 2023 - 2025 securitizations is the total at risk for the Majority-Owned Affiliates.

Current wording

(4)The fair value of the first loss pieces presented is the total at risk for the Majority-Owned Affiliates.

Previous wording

(2)The whole pool RMBS presented as of March 31, 2026 were purchased from a broker to whom the Company owed approximately $129.4 million, payable upon the settlement date of the trade. See Note 6 —Due to Brokerin our unaudited condensed consolidated financial statements included in this report.

Current wording

(2)The whole pool RMBS presented as of June 30, 2026 were purchased from a broker to whom the Company owed approximately $255.9 million, payable upon the settlement date of the trade. See Note 6 —Due to Brokerin our unaudited condensed consolidated financial statements included in this report.

Previous wording

(3)A portion of repurchase debt includes borrowings against retained bonds received from on-balance sheet securitizations (i.e., consolidated VIEs). These bonds, with a fair value of $220.9 million, are not reflected in the condensed consolidated balance sheets, as the Company reflects the assets of the VIE (residential mortgage loans in securitization trusts - at fair value) on its condensed consolidated balance sheets.

Current wording

(3)A portion of repurchase debt includes borrowings against retained bonds received from on-balance sheet securitizations (i.e., consolidated VIEs). These bonds, with a fair value of $215.1 million, are not reflected in the condensed consolidated balance sheets, as the Company reflects the assets of the VIE (residential mortgage loans in securitization trusts - at fair value) on its condensed consolidated balance sheets.

Previous wording

The following table sets forth information with respect to our RMBS ending balances, at fair value, for the period ended March 31, 2026:

Current wording

The following table sets forth information with respect to our RMBS ending balances, at fair value, as of June 30, 2026:

Previous wording

As of March 31, 2026, we were a party to four warehouse loan financing lines, which permitted borrowings in an aggregate amount of up to $1.3 billion. Borrowings under uncommitted loan financing lines may be used to purchase whole loans for eventual securitization or loans purchased for long‑term investment purposes.

Current wording

As of June 30, 2026, we were a party to four warehouse loan financing lines, which permitted borrowings in an aggregate amount of up to $1.3 billion. During the quarter ended June 30, 2026, we renewed our loan financing facility with Multinational Bank 1 in accordance with the terms of the agreement, which contemplates rolling three-month renewals. Borrowings under warehouse loan financing lines (in general, each a “loan financing facility”) may be used to purchase whole loans for securitization or loans purchased for long‑term investment purposes.

Previous wording

Pursuant to the agreement, Multinational Bank 1 retains the right to determine the market value of the mortgage loans in its sole commercially reasonable discretion. The loan financing line is marked‑to‑market. Additionally, Multinational Bank 1 is under no obligation to purchase the eligible mortgage loans we offer to sell to them. The interest rate on any outstanding balance under the master repurchase agreement that the applicable subsidiary is required to pay Multinational Bank 1 is generally in line with other similar agreements that the Company or one or more of its subsidiaries has entered into, where the interest rate is equal to the sum of (1) a pricing spread from 1.65% - 2.10% and (2) the average SOFR for each U.S. Government Securities Business Day (as defined in the master repurchase agreement) until two U.S. Government Securities Business Days prior to the date the applicable loan is repurchased by the applicable subsidiary.

Current wording

The amount expected to be paid by Multinational Bank 1 for each eligible mortgage loan is based on an advance rate as a percentage of either the outstanding principal balance of the mortgage loan or the market value of the mortgage loan, whichever is less. Pursuant to the agreement, Multinational Bank 1 retains the right to determine the market value of the mortgage loans in its sole commercially reasonable discretion. The loan financing line is marked‑to‑market. Additionally, Multinational Bank 1 is under no obligation to purchase the eligible mortgage loans we offer to sell to them. The interest rate on any outstanding balance under the master repurchase agreement that the applicable subsidiary is required to pay Multinational Bank 1 is generally in line with other similar agreements that the Company or one or more of its subsidiaries has entered into, where the interest rate is equal to the sum of (1) a pricing spread from 1.30% - 2.10% and (2) the average SOFR for each U.S. Government Securities Business Day (as defined in the master repurchase agreement) until two U.S. Government Securities Business Days prior to the date the applicable loan is repurchased by the applicable subsidiary.

Previous wording

(1)On December 26, 2025, this financing facility was extended through June 25, 2026 in accordance with the terms of the agreement, which contemplates rolling three-month renewals. The interest rate pricing spread remained unchanged from the prior extension at a range from 1.65% to 2.10%.

Current wording

(1)On June 25, 2026, this financing facility was extended through September 25, 2026 in accordance with the terms of the agreement, which contemplates rolling three-month renewals. In addition, the interest rate pricing spread was reduced to a range from 1.30% to 2.10%; prior to this extension, the interest rate pricing spread was a range from 1.65% to 2.10%.

Previous wording

The below table details the total interest expense incurred on the Senior Unsecured Notes during the three months ended March 31, 2026 and March 31, 2025.

Current wording

The below table details the total interest expense incurred on the Senior Unsecured Notes during the three and six months ended June 30, 2026 and June 30, 2025 ($ in thousands).

Previous wording

At March 31, 2026 and December 31, 2025, the unamortized deferred debt issuance cost was $1.2 million and $1.2 million, respectively. The unamortized debt issuance costs will be amortized until maturity.

Current wording

At June 30, 2026 and December 31, 2025, the unamortized deferred debt issuance cost was $1.1 million and $1.2 million, respectively. The unamortized debt issuance costs will be amortized until maturity.

Previous wording

On August 8, 2024, the Company entered into an At Market Issuance Sales Agreement (the “Sales Agreement”) to sell shares of the Company’s common stock from time to time having an aggregate gross sales price of up to $75.0 million, of which $60.2 million remains available as of March 31, 2026, through an “at the market” equity offering program (the “ATM Program”). During the year ended December 31, 2025, the Company issued and sold 1,277,812 shares of its common stock through its ATM Program resulting in proceeds of $12.3 million, net of commissions and fees. These shares of common stock were issued in SEC registered transactions off the Company’s shelf registration statement. The Company did not issue any shares under the ATM Program during the quarter ended March 31, 2026.

Current wording

On August 8, 2024, the Company entered into an At Market Issuance Sales Agreement (the “Sales Agreement”) to sell shares of the Company’s common stock from time to time having an aggregate gross sales price of up to $75.0 million, of which $60.2 million remains available as of June 30, 2026, through an “at the market” equity offering program (the “ATM Program”). During the year ended December 31, 2025, the Company issued and sold 1,277,812 shares of its common stock through its ATM Program resulting in proceeds of $12.3 million, net of commissions and fees. These shares of common stock were issued in SEC - registered transactions off the Company’s shelf registration statement. The Company did not issue any shares under the ATM Program during the three and six months ended June 30, 2026.

Previous wording

Restricted cash of approximately $1.7 million as of March 31, 2026 was comprised of: $0.5 million in interest rate futures margin collateral for the interest rate futures under our sole control; and margin collateral for securities sold under agreements to repurchase of $1.2 million.

Current wording

Restricted cash of approximately $3.4 million as of June 30, 2026 was comprised of: $2.2 million in interest rate futures margin collateral for the interest rate futures under our sole control; and margin collateral for securities sold under agreements to repurchase of $1.2 million. Our counterparties did not require any margin collateral for TBAs as of June 30, 2026.

Previous wording

The cash used in operating activities of $143.7 million for the three months ended March 31, 2026 as compared to the cash used in operating activities of $201.7 million for the three months ended March 31, 2025 was primarily due to the volume of residential mortgage loans purchased during the first three months of 2026, as compared to the first three months of 2025.

Current wording

The cash used in operating activities of $225.6 million for thesix months ended June 30, 2026 as compared to cash used in operating activities of $181.1 million for the six months ended June 30, 2025 was primarily due to the volume of residential mortgage loans purchased from affiliates and non affiliates during the first six months of 2025, as compared to the first six months of 2026.

Previous wording

Financing cash flows provided $141.7 million for the three months ended March 31, 2026 as compared to $278.2 million provided by financing activities for the three months ended March 31, 2025 were primarily due to the activity within net borrowings under repurchase agreements and notes payable during the first three months of 2026.

Current wording

Financing cash flows provided $202.2 million for thesix months ended June 30, 2026 as compared to $188.3 million used in the six months ended June 30, 2025, which were primarily due to the activity within net borrowings under notes payable offset by the repurchase of common stock and principal payments on non-recourse securitization obligation.