Ellington Financial Reports Significant Increase in Q1 2026 Net Income to $95.5 Million

Ellington Financial Inc. reported a significant increase in its financial performance for the first quarter of 2026, with net income attributable to common stockholders reaching $95.5 million, compared to $31.6 million in the same period last year. This translates to a basic and diluted earnings per share of $0.78, up from $0.35 in the prior year. The company’s total interest income rose to $149.5 million, a 29% increase from $115.9 million in the first quarter of 2025, driven by higher yields and a larger average credit portfolio. Interest expense also increased to $88.2 million from $72.7 million, reflecting the rising cost of funds associated with its financing activities.

The company’s total assets grew to $20.2 billion as of March 31, 2026, up from $19.4 billion at the end of 2025. This growth was primarily attributed to an increase in loans and securities, with loans at fair value amounting to $17.4 billion, compared to $16.6 billion at the end of the previous year. The company also reported a notable increase in its investments in unconsolidated entities, which rose to $349.7 million from $312.4 million. The total stockholders' equity increased to $1.96 billion, reflecting net proceeds from common stock issuance and contributions from non-controlling interests.

Strategically, Ellington Financial has been active in the market, completing a follow-on offering of 8.8 million shares of common stock, generating net proceeds of $117.2 million. The company also initiated an "at-the-market" offering program for its Series B Preferred Stock, with remaining authorization to issue up to $99.5 million. Additionally, the company redeemed all outstanding shares of its Series A Preferred Stock for $115.8 million, which has since been delisted from the NYSE.

Operationally, the Longbridge segment, which focuses on reverse mortgage loans, reported strong results with a net change from HECM reverse mortgage loans at fair value of $235 million, bolstered by robust origination volumes. The segment originated $515.4 million in new loans during the quarter, a 52% increase from the same period last year. The company continues to manage its portfolio actively, utilizing various hedging strategies to mitigate risks associated with interest rates and credit exposure.

Looking ahead, Ellington Financial remains optimistic about its ability to generate attractive risk-adjusted returns, leveraging its diversified investment strategy across various asset classes. The company plans to continue adjusting its asset allocations in response to changing market conditions while maintaining its qualification as a real estate investment trust (REIT).