Ellington Financial (EFC) investor relations material

Executive summary

• Net income attributable to common stockholders was $95.5 million ($0.78 per share) for Q1 2026, with strong contributions from both the investment portfolio and Longbridge segment, driven by higher net interest income, gains in loan originations, and a $17 million litigation settlement.

• Adjusted Distributable Earnings (ADE) were $66.5 million ($0.55 per share), significantly exceeding the $0.39 dividend.

• Book value per common share rose to $13.56, up 3% net of dividends for the quarter.

• Annualized economic return reached 26% for the quarter.

• Dividend yield reached 11.9% based on the May 5, 2026 closing price.

Financial highlights

• Investment portfolio segment net income was $77.6 million, with $75.8 million from credit and $1.7 million from Agency strategies.

• Longbridge segment net income was $57.5 million, driven by robust reverse mortgage originations (up 52% year-over-year) and a $17 million litigation settlement.

• Credit portfolio grew 4% sequentially to $4.27 billion, while the Agency RMBS portfolio declined 3% to $197.3 million.

• Total unencumbered assets stood at $1.92 billion, including $163.2 million in cash.

• Net interest income for Q1 2026 was $61.3 million, up from $43.3 million in Q1 2025.

Outlook and guidance

• Management expects continued strong origination volumes in the Longbridge segment and stable performance in the investment portfolio, with flexibility to shift asset allocations as market conditions evolve.

• Raised quarterly ADE per share guidance to $0.45, well above the dividend run rate.

• Continued focus on scaling origination and securitization platforms to improve execution and financing terms.

• Monitoring market for potential additional preferred equity issuance when pricing is attractive.

• The company declared dividends of $0.13 per share for Q2 2026, consistent with prior quarters.