Ellington's Q1 2026: Crushing Earnings, Record Growth

Ellington Financial exceeded expectations in Q1 2026, with GAAP net income of $0.78 per share and adjusted distributable earnings of $0.55 per share, surpassing their quarterly dividend run rate by a significant margin. Book value per share increased by 3% to $13.56, despite rising volatility and wider credit spreads. Annualized economic return reached 26%, driven by a diversified portfolio. Longbridge had a record-breaking quarter, with near-record proprietary reverse mortgage originations, market share gains in HECM loans, and impressive gain-on-sale margins. They successfully completed a securitization at their lowest-ever cost of funds and secured servicing wins from tail deals, HMBS MSRs, hedges, and a $17 million litigation settlement. Credit performance remained strong, with delinquency rates dropping for the second consecutive quarter and minimal realized losses across residential and commercial loans. The company increased securitizations to seven deals totaling $2.8 billion, more than double last years pace, and raised $117 million in common equity to replace high-cost preferred stock, reducing overall capital expenses. Ellington is advancing a residential mortgage servicer acquisition for deeper vertical integration and raised ADE guidance to the $0.45 per share zone. April showed solid portfolio returns, though liability marks trimmed book value by about $0.13. Overall, Ellingtons platform, powered by Longbridge growth, securitization scale, and a fortified balance sheet, positions them for consistent wins ahead, regardless of market noise. Support the show:Get a discount at https://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/7153171262fc6543