Ellington Financial Inc. · NYSE:EFC
Ellington Financial — Q4 2025 Earnings Presentation
38 slides from Ellington Financial's earnings presentation, Feb 26, 2026
Slide 1: Earnings Conference Call Q4 2025
Earnings Conference Call Q4 February 26, 2026 2025 Q4 2025 EARNINGS
Slide 2: Important Notice
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 diff
Slide 3: Fourth Quarter Highlights
Fourth Quarter Highlights(1) • Net income: $14.7 million or $0.14 per share(2) Overall Results • Economic return:(3) 1.1% for the quarter, non-annualized • Adjusted Distributable Earnings:(4) $51.4 million or $0.47 per share • Net income: $42.2 million or $0.39 per share • Adjustable Distributable E
Slide 4: Portfolio Summary as of December 31, 2025
Portfolio Summary as of December 31, 2025(1) Allocated Fair Value Average Price WAVG Mkt (2) Equity and Asset Credit Equity ($ in $1,000s) (%)(3)(7) WAVG Life(5)(7) Yield(6)(7) Allocation by Strategy Non-QM Loans and Retained RMBS(8)(9)(10) $ 1,392,878 94.9 4.5 7.8% 2% Commercial Mortgage Loans and
Slide 5: Operating Results by Strategy for the Quarter Ended December 31, 2025
Operating Results by Strategy for the Quarter Ended December 31, 2025 Investment Portfolio Investment Portfolio Corporate/ Total (In thousands, except per share amounts) Credit Agency Subtotal Longbridge Other Total Per Share (1) Interest income and other income $ 99,886 $ 2,462 $ 102,348 $ 42,510 $
Slide 6: Reconciliation of Net Income (Loss) to Adjusted Distributable Earnings
Reconciliation of Net Income (Loss) to Adjusted Distributable Earnings(1) Three-Month Period Ended December 31, 2025 Investment (in thousands, except per share amounts) Longbridge Corporate/Other Total Portfolio Net Income (Loss) $ 42,961 $ 16,361 $ (36,708) $ 22,614 Income tax expense (benefit) - -
Slide 7: Long Credit Portfolio
Long Credit Portfolio* H I J H I J K K 2% 4% 2% 2% 2% 4% G 2% 3% G 2% F 3% 3% F A: Non-QM Loans and Retained RMBS(3)(4) E A 3% A B: Commercial Mortgage Loans & CMBS(3)(6) 3% 31% E 34% 6% C: Residential Transition Loans and other Residential D Mortgage Loans and Retained RMBS(3)(5) 9% $3.56 bn D $4.1
Slide 8: Long Agency Portfolio
Long Agency Portfolio 15- RM Fixed Fixed RM Year Fixed IOs 15- IOs Fixed Fixed <1% Year <1% 2% 7% Fixed 6% 2% $218.4 mm $220.7 mm 91% 91% 30-Year 30-Year Fixed Fixed As of 12/31/2025(1) As of 9/30/2025(1) Fair Value(1) Wtd. Avg. Fair Value(1) Wtd. Avg. (2) Category ($ in MMs) Coupon Category ($ in M
Slide 9: Longbridge Portfolio
Longbridge Portfolio* E E 1% <1% D D 5% 4% C C 15% 19% A: Proprietary reverse mortgage loans B: Unsecuritized HECM loans(2) A C: HMBS MSR Equivalent (3) 47% $617.2 mm D: Reverse MSRs B $750.0 mm E: Other(4) 19% A 62% B 28% As of 12/31/2025(1) As of 9/30/2025(1) • Longbridge originates reverse mortga
Slide 10: Summary of Borrowings
Summary of Borrowings Recourse Borrowings ($ in thousands) As of 12/31/25 Three-Month Period Ended 12/31/25 Average Average Cost Outstanding Weighted Average Collateral Type Borrowings Borrowing Rate Borrowings of Funds Credit(1) $ 2,328,665 5.43% $ 2,249,518 5.75% Agency RMBS 201,691 4.01% 137,316
Slide 11: Commercial Mortgage Loan Portfolio – Detail as of 12/31/25
Commercial Mortgage Loan Portfolio – Detail as of 12/31/25(1)(2) Assisted Living Mobile Home 1% Self-Storage 1% 1% Office Mixed Use 5% All Other 6% States <5% NY Industrial 23% 6% 34% 9% Property Retail Geography Type 59% FL Multifamily 12% IL 20% Hotel 6% NJ TX 8% 9% Fixed First Lien 6% 100% Floati
Slide 12: Proprietary Loan Origination Businesses
Proprietary Loan Origination Businesses Ellington Financial’s vertically integrated, proprietary loan origination businesses are designed to: • Lock in a steady flow of high-quality loan originations • Leverage Ellington’s core strengths of data analysis and modeling to help shape the underwriting c
Slide 13: Stable Economic Return
Stable Economic Return Standard Deviation of Quarterly Economic Returns of Hybrid REITs, Q1-2011 – Q3-2025(1)(2) Standard 16.0% Company Deviation EFC 3.5% 14.0% Hybrid REIT #02 6.1% 12.0% Hybrid REIT #03 6.2% Hybrid REIT #04 6.7% 10.0% Hybrid REIT #05 9.2% 8.0% Hybrid REIT #06 12.9% 6.0% Hybrid REIT
Slide 14: Interest Rate Sensitivity Analysis
Interest Rate Sensitivity Analysis(1) Estimated Change in Fair Value As of 12/31/2025 50 Basis Point Decline in Interest Rates 50 Basis Point Increase in Interest Rates ($ in thousands) ∆ Fair Value % of Total Equity ∆ Fair Value % of Total Equity Agency RMBS – Fixed Pools and IOs excluding TBAs $ 5
Slide 15: Loan Portfolios Have Consistently Delivered Strong Credit Performance Across Sectors
Loan Portfolios Have Consistently Delivered Strong Credit Performance Across Sectors Cumulative Loans Funded and Realized Credit Losses (Non-Annualized) 18.0 5% Cumulative Loans Funded ($B) Cumulative Loss Rate – Non-Annualized (%)(2) $16.7 Residential Mortgage Loans(1) 16.0 Since the inception of e
Slide 16: Supplemental Slides
Supplemental Slides Q4 2025 EARNINGS 16
Slide 17: Corporate Responsibility
Corporate Responsibility Environmental Social Governance • Our offices are conveniently located near • We invest in home mortgage loans, which support • We operate under a Code of Business mass transportation. homeownership and stability within communities. Conduct and Ethics. • We provide financial
Slide 18: Fourth Quarter Market Update
Fourth Quarter Market Update Quarter Ended 12/31/2025 Q4/Q3 9/30/2025 Q3/Q2 6/30/2025 Q2/Q1 3/31/2025 (1) UST (%) 3M UST 3.63 -0.31 3.93 -0.36 4.29 -0.00 4.29 2Y UST 3.47 -0.14 3.61 -0.11 3.72 -0.16 3.88 5Y UST 3.73 -0.02 3.74 -0.06 3.80 -0.15 3.95 10Y UST 4.17 +0.02 4.15 -0.08 4.23 +0.02 4.21 30Y U
Slide 19: Derivatives Summary as of December 31, 2025
Derivatives Summary as of December 31, 2025(1) ($ in thousands) Long Notional Short Notional Net Notional Fair Value Mortgage-Related Derivatives: CDS on MBS and MBS Indices $ 190 $ (26,739) $ (26,549) $ 2,204 Total Net Mortgage-Related Derivatives $ 2,204 Corporate-Related Derivatives: CDS on Corpo
Slide 20: Credit Hedging Portfolio
Credit Hedging Portfolio(1)(2) Instrument Category Corporate CDS Indices/ Tranches/ Options/ Single Names CMBX Units HY CDX OTR Equivalent Value(3) Bond Equivalent Value(4) - (50.00) (100.00) (150.00) (200.00) (250.00) (300.00) (350.00) (400.00) 9/30/2025 12/31/2025 • EFC’s dynamic credit hedging st
Slide 21: Diversified Credit Portfolio
Diversified Credit Portfolio Diversified sources of return to perform over market cycles Other Commercial Mortgages • Bridge Loans 6% • CMBS, B-Pieces & Credit Bonds • NPLs • REO Residential Mortgages 24% • Non-QM Loans • Residential Transition Loans • MSR-Related Investments • HELOCs • Closed-End S
Slide 22: Agency Interest Rate Hedging Portfolio
Agency Interest Rate Hedging Portfolio(1) We deploy a dynamic and adaptive hedging strategy to preserve book value B C B <0.1% 3.8% <1% A: 2-5Yr Interest Rate Swaps $118.8mm B: <2 Yr Treasuries $131.6mm C: >5 Yr Treasuries and Treasury Futures A A 96.2% >99% As of 12/31/2025 As of 9/30/2025 Short $1
Slide 23: CPR Breakout of Agency Fixed Long Portfolio
CPR Breakout of Agency Fixed Long Portfolio Average for Quarter Ended 12/31/2025(1) Average for Quarter Ended 9/30/2025(1)) Jumbo Other Geography Other <1% 16% Geography 23% Jumbo 20% <1% 20% High LTV 9% High LTV 8% Non- 11% Loan 21% 20% Owner Balance Loan Balance Non- 14% 20% Owner Low 18% FICO Low
Slide 24: Repo Borrowings
Repo Borrowings(1) Borrowings by Days to Maturity ($ in thousands) Repo Borrowings as of December 31, 2025 Remaining Days to Reverse % of Total Credit Agency U.S. Treasury Total 30 Days Maturity Mortgage Loans Borrowings or Less 10% 30 Days or Less $ 40,822 $ 193,105 $ 33,310 $ - $ 267,237 10.1% 31-
Slide 25: Resilient Profit Generation Over Market Cycles
Resilient Profit Generation Over Market Cycles(1)(2) COVID Pandemic ($ in thousands) Years Ended 2025 2024 2023(3) 2022 2021 2020 2019 2018 2017 Long: Credit $ 198,378 11.7% $ 156,663 9.9% $ 103,239 7.7% $ (74,934) -6.0% $188,562 18.1% $53,736 6.2% $73,919 11.1% $61,201 10.0% $61,136 9.6% Credit Hed
Slide 26: Total Return Since Inception
Total Return Since Inception EFC has successfully preserved book value over market cycles, while producing strong results for investors • EFC life-to-date economic return, with dividends reinvested, from inception in August 2007 through Q4 2025 is approximately 329.5%, or 8.3% annualized(1) Diluted
Slide 27: Capital, Leverage & Portfolio Composition
Capital, Leverage & Portfolio Composition Capital Usage By Strategy(1) Leverage by Strategy (Debt-to-Equity)(1) 10.0 12/31/2025 9.5 8.6 9.1 9.0 8.8 8.8 8.7 9.0 8.7 9/30/2025 8.5 8.7 8.6 8.0 7.5 7.0 6/30/2025 7.0 6.5 6.0 6.4 3/31/2025 5.5 5.4 5.0 3/31/2025 6/30/2025 9/30/2025 12/31/2025 0% 10% 20% 30
Slide 28: Condensed Consolidated Balance Sheet (Unaudited)
Condensed Consolidated Balance Sheet (Unaudited) (in thousands, except share and per share amounts) December 31, 2025 September 30, 2025 Assets Cash and cash equivalents $ 201,893 $ 184,809 Restricted cash 136,297 20,769 Securities, at fair value 1,034,882 909,851 Loans, at fair value 16,640,647 15,
Slide 29: Condensed Consolidated Statement of Operations (Unaudited)
Condensed Consolidated Statement of Operations (Unaudited) Three-Month Period Ended (In thousands, except per share amounts) December 31, 2025 September 30, 2025 Net Interest Income Interest income $ 140,260 $ 122,846 Interest expense (86,623) (73,126) Total net interest income $ 53,637 $ 49,720 Oth
Slide 30: About Ellington Management Group
About Ellington Management Group Ellington and its Affiliated Management Companies Ellington Profile • Our external manager Ellington Financial Management LLC is part of the As of 12/31/2025 Ellington family of SEC-registered investment advisors(4) Founded: 1994 Employees: >170 • Ellington Managemen
Slide 31: Investment Highlights of EFC
Investment Highlights of EFC Diversified investment Proprietary portfolio of high- Dynamic interest-rate and portfolio across residential yielding, short-duration loans credit hedging designed to mortgage, commercial reduce volatility of book value mortgage, consumer loan, and earnings and corporate
Slide 32: Endnotes
Endnotes Slide 3 – Fourth Quarter Highlights (1) Holdings, leverage, equity and book value amounts are as of December 31, 2025. (2) Represents $58.5 million of aggregate net income from the investment portfolio and Longbridge segments, less $43.9 million of preferred dividends accrued and certain co
Slide 33: Endnotes
Endnotes Slide 5 – Operating Results by Strategy for the Quarter Ended December 31, 2025 (1) Other income primarily consists of rental income on real estate owned, loan origination fees, and servicing income. (2) Includes U.S. Treasury securities, if applicable. (3) Other activities include certain
Slide 34: Endnotes
Endnotes Slide 7 – Long Credit Portfolio (1) Includes REO at the lower of cost or fair value. Excludes hedges and other derivative positions. For our consolidated securitization trusts, excludes tranches that were sold to third parties, but that are consolidated for GAAP purposes. Including such tra
Slide 35: Endnotes
Endnotes Slide 13 – Stable Economic Return (1) Source: Company filings. (2) Economic return is computed by adding back dividends to ending book value per share and comparing that amount to book value per share as of the beginning of the quarter. Slide 14 – Interest Rate Sensitivity Analysis (1) The
Slide 36: Endnotes
Endnotes Slide 21 – Diversified Credit Portfolio (1) Subject to maintaining our qualification as a REIT. (2) Excludes hedges and other derivative positions. (3) For our consolidated securitization trusts, only retained tranches are included (i.e., excludes tranches sold to third parties). Slide 22 –
Slide 37: Endnotes
Endnotes Slide 30– About Ellington Management Group (1) $20.1 billion AUM includes approximately $0.3 billion of Ellington-sponsored CLO equity and notes. Ellington-sponsored CLO AUM includes the face amount of CLO notes and market value of CLO equity, excluding amounts of notes and equity held by o
Slide 38: Investor Relations
Investors: Investor Relations Ellington Financial Inc. (203) 409-3575 Info@ellingtonfinancial.com Media: Amanda Shpiner or Sara Widmann Gasthalter & Co. for Ellington Financial Inc. (212) 257-4170 Ellington@gasthalter.com Ellington Financial Inc. 53 Forest Ave Old Greenwich, CT 06870 www.ellingtonfi