EFC · Ellington Financial Inc.

Ellington Financial Inc. delivered robust Q1 2026 results with GAAP net income of $95.5 million ($0.78/share), fueled by broad-based performance across its diversified portfolio. The investment portfolio contributed $76.4 million ($0.63/share), including $74.7 million from credit strategies yielding higher net interest income, net gains on non-QM loans, Agency-eligible loans, and equity investments in originators, despite some losses on CLOs and non-Agency RMBS. The Agency strategy added $1.7 million ($0.02/share), supported by interest rate hedge gains offsetting RMBS losses amid wider spreads. Longbridge shone with $57.5 million ($0.47/share) net income and $25.4 million ($0.21/share) Adjusted Distributable Earnings (ADE), driven by $515.4 million in originations (52% YoY growth), securitization gains from seven $2.8 billion transactions, strong servicing including HMBS MSR gains, and a $17 million lawsuit settlement. Adjusted long credit portfolio expanded 4% to $4.27 billion, with non-QM loans at 46.4% dominance. Agency RMBS dipped 3% to $197.3 million. CEO Laurence Penn highlighted 26% annualized economic return, 3% book value growth to $13.56 net of $0.39/share dividends, and ADE outpacing payouts. Balance sheet strength evident in 1.9:1 recourse leverage, 30% long-term non-mark-to-market recourse borrowings, $1.92 billion unencumbered assets, and recent accretive equity raise to retire high-cost preferreds, enhancing flexibility for opportunities.