Ellington Financial Inc. (NYSE: EFC) reported an estimated book value per common share of $13.63 as of July 31, 2026.

The estimate incorporates the impact of the monthly dividend of $0.13 per share, scheduled for payment on August 31, 2026 to shareholders of record on July 31, 2026.

What the Numbers Show

The disclosed book value is an interim estimate subject to material revision upon completion of month-end and quarter-end valuation procedures for the company's investment portfolio. The figure does not guarantee results for the three- or nine-month periods ending September 30, 2026.

About Ellington Financial

Ellington Financial invests in a diverse array of financial assets, including residential and commercial mortgage loans, mortgage-backed securities, reverse mortgage loans, mortgage servicing rights, consumer loans, asset-backed securities, collateralized loan obligations, and non-mortgage derivatives. The company is externally managed by Ellington Financial Management LLC, an affiliate of Ellington Management Group, L.L.C.

Ellington Financial Inc. reported second-quarter 2026 adjusted distributable earnings (ADE) of $0.60 per common share, significantly beating the analyst consensus estimate of $0.46 by 30.43%. The company’s net interest income surged 66.78% year-over-year to $72.286 million, outpacing the $65.821 million estimate and reflecting robust performance in its investment portfolio and Longbridge segments.

The strong quarterly performance was driven by excellent credit results across residential strategies and record market share in the reverse mortgage sector. For the first half of 2026, Ellington generated an annualized economic return of 20%, increasing book value per share by $0.45 to $13.61 as of June 30, 2026. The company comfortably covered its quarterly dividends of $0.39 per common share with ADE of $1.15 for the six-month period.

Key Financial Highlights

The following table summarizes the company's key performance metrics for the quarter ended June 30, 2026:

Investment Portfolio Segment

The investment portfolio segment generated net income attributable to common stockholders of $74.2 million, or $0.59 per common share. ADE from this segment was $75.7 million, or $0.60 per common share. The total adjusted long portfolio increased by approximately 1% sequentially, reaching $4.50 billion as of June 30, 2026. Growth in residential transition loan and commercial mortgage bridge loan portfolios, along with retained RMBS, offset continued securitization activity. Net interest margin on the investment portfolio declined slightly to 3.36% from 3.37% quarter over quarter, as slightly higher asset yields were more than offset by slightly higher funding costs.

Portfolio composition highlights for the quarter included:

• Excellent performance across most of the portfolio, led by residential credit strategies — including non-QM loans, Agency-eligible loans, residential transition loan retained tranches, closed-end second lien retained tranches, non-Agency RMBS, and forward MSR-related investments — as well as CLOs, corporate debt and equity, and equity investments in loan originators
• Weaker results in CMBS, residential REO, and other loans and ABS
• Strong credit performance across loan businesses, with continued low life-to-date realized credit losses in both residential and commercial loan portfolios

Longbridge Segment

The Longbridge segment reported net income attributable to common stockholders of $30.2 million, or $0.24 per common share. ADE from Longbridge was $28.9 million, or $0.23 per common share. Longbridge originated $589.7 million of loans during the quarter, up 38% from the same period in 2025. The company completed two proprietary reverse mortgage loan securitizations during the quarter, and the net Longbridge portfolio declined 7% sequentially to $649.3 million as of June 30, 2026.

Longbridge's HMBS market share reached a new high of 29% for the quarter, ranking it as the #2 issuer in the market, according to Bloomberg. Key highlights included strong contribution from originations, supported by net gains related to two proprietary reverse mortgage loan securitizations and robust origination volumes and margins.

Financing and Balance Sheet

The recourse debt-to-equity ratio, excluding borrowings collateralized by U.S. Treasury securities and adjusted for unsettled purchases and sales, was unchanged at 1.9:1 as of both June 30, 2026 and March 31, 2026. The overall debt-to-equity ratio increased modestly to 9.2:1 as of June 30, 2026 from 9.0:1 as of March 31, 2026, primarily reflecting higher non-recourse borrowings associated with recent securitization activity.

Total unencumbered assets stood at $1.86 billion, consisting of cash and cash equivalents of $247.5 million and other unencumbered assets of $1.61 billion. A conference call to discuss the second quarter 2026 results is scheduled for Friday, August 7, 2026 at 11:00 a.m. Eastern Time.