Financial Data and Key Metrics Changes - For Q4 2025, the company reported GAAP net income of $0.14 per share and adjusted distributable earnings (ADE) of $0.47 per share, exceeding dividends of $0.39 per share [5][13] - The economic return for Q4 was 4.6% annualized, with book value per share at $13.16 [21][29] - The weighted average borrowing rate on recourse borrowings decreased by 32 basis points to 5.67% [18] Business Line Data and Key Metrics Changes - The credit portfolio saw net interest income increase sequentially, with contributions from non-QM retained tranches and forward MSR-related investments [14] - The Longbridge segment reported strong origination profits driven by higher origination volumes and margins, alongside positive contributions from servicing [15] - The adjusted long credit portfolio increased by 15% to $4.1 billion quarter-over-quarter [16] Market Data and Key Metrics Changes - The agency-eligible loan strategy added approximately $250 million in loans during the second half of 2025, reflecting a shift towards sectors where GSEs are reducing their footprint [10] - The total long agency RMBS portfolio slightly decreased to $218 million, while the Longbridge portfolio decreased by 18% to $617 million due to securitizations [17] Company Strategy and Development Direction - The company aims to optimize its capital structure and enhance resilience by increasing the proportion of long-term, non-mark-to-market borrowings [11][20] - The focus is on expanding loan origination market share while maintaining strong credit performance, supported by a robust securitization platform [38] - The acquisition of a small residential mortgage servicer is expected to enhance in-house servicing capabilities, particularly for delinquent assets [37] Management's Comments on Operating Environment and Future Outlook - Management noted that the housing market shows broader signs of weakness, with more borrowers struggling to stay current, but they maintain significant credit hedges [28] - The company is optimistic about the long-term opportunities in the agency-eligible sector, especially as policymakers are more receptive to private capital [10] - The economic environment remains uncertain, with potential changes in government policies impacting prepayment speeds and the attractiveness of private label versus GSE execution [25][64] Other Important Information - The company completed 25 securitizations in 2025, a significant increase from seven in 2024, and issued $400 million in unsecured notes [29] - Unencumbered assets grew by 45% to $1.77 billion, representing about 95% of total equity [20] Q&A Session Summary Question: Can you discuss the decision to buy the servicer and its implications? - Management highlighted the consolidation in the servicing industry and the need for best-in-class protocols to handle borrowers facing challenges, emphasizing the importance of in-house servicing capabilities [42][44] Question: Will the servicer be used for third-party clients or just the Ellington portfolio? - The servicer will be owned within EFC and initially focused on optimizing the existing portfolio, with potential future opportunities for third-party clients [47][49] Question: How are current repo conditions for retained tranches? - Management noted that the repo market functioned well, but they prefer to operate conservatively regarding leverage on retained tranches due to inherent price volatility [53][54] Question: What are the implications of potential changes to bank capital standards? - Management expressed uncertainty about the impact of capital regulations on bank activity in the mortgage market, noting that significant bank buying was underwhelming in 2025 [77] Question: What are the top priorities for 2026? - Key priorities include integrating the mortgage servicer, increasing long-term financing, and monitoring the preferred market for potential refinancing opportunities [81][84]

Earnings Conference Call February 26, 202 6 Q4 2025 Q4 2025 EARNINGS Important Notice Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve numerous risks and uncertainties. Our actual results may differ from our beliefs, expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as pre ...

Financial Performance - Net income was $42.9 million, or $0.45 per share[11] - Economic return was 3.3% for the quarter (non-annualized)[11] - Adjusted Distributable Earnings were $45.0 million, or $0.47 per share[11] - The company declared total dividends of $0.39 for the quarter, resulting in a book value per common share of $13.49[11] Portfolio Composition and Strategy - The adjusted long credit portfolio increased by 1% to $3.32 billion as of June 30, 2025, compared to $3.30 billion as of March 31, 2025[11, 18] - The long Agency portfolio increased by 5% to $268.5 million, driven by net purchases[11, 26] - The Longbridge portfolio decreased by 1% to $545.6 million, as a securitization slightly exceeded new originations[11, 29] - 87% of deployed capital was allocated to credit, 2% to agency, and 11% to Longbridge[12] Leverage and Capital Structure - Recourse debt-to-equity ratio was 1.7:1[11] - Total debt-to-equity ratio was 8.7:1, including non-recourse borrowings[11] - Total stockholders' equity was $1.67 billion, including $1.33 billion of common equity and $332 million of preferred equity[11]

Financial Performance - Ellington Financial reported net income of $31649 million, or $035 per share[11] - Adjusted Distributable Earnings were $35493 million, or $039 per share[11] - The economic return for the quarter was 23%, non-annualized[11] Portfolio Composition and Strategy - The adjusted long credit portfolio decreased by 4% to $330 billion[11, 18] - The long Agency portfolio decreased by 14% to $2561 million[11, 26] - The Longbridge portfolio increased by 31% to $5490 million, driven by proprietary reverse mortgage loan originations[11, 29] Leverage and Capital Structure - The recourse debt-to-equity ratio was 17:1[11] - The total debt-to-equity ratio, including non-recourse borrowings, was 87:1[11] - Total stockholders' equity was $161 billion, including $128 billion of common equity and $332 million of preferred equity[11]

Earnings Conference Call February 28, 2025 Q4 2024 Q4 2024 EARNINGS Important Notice Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve numerous risks and uncertainties. Our actual results may differ from our beliefs, expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as pred ...