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Ellington Financial Reports $54.4M Profit on Strong Longbridge Originations

Created at 7 Aug · 6:45 PM1 source↑ Market-relevant
IN SHORT

Ellington Financial Inc. posted second-quarter 2026 net income of $54.4 million, driven by a 38% surge in reverse mortgage originations at its Longbridge Financial subsidiary. Adjusted distributable earnings exceeded the quarterly dividend, and book value per common share increased.

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Key Numbers

$54.4Msecond-quarter net income
$75.5Madjusted distributable earnings
60 centsadjusted distributable earnings per share
39 centsquarterly dividend per share
$13.61book value per common share
$30.2MLongbridge net income contribution
$589.7MLongbridge reverse mortgage originations
38%increase in Longbridge originations
$649.3MLongbridge portfolio value
7%sequential decline in Longbridge portfolio
54%proprietary reverse mortgages of total volume
29%Longbridge's HECM MBS market share
$4.50Btotal adjusted investment portfolio
45.3%non-QM loans and retained RMBS exposure
$2.69Bnon-QM loans and retained RMBS value
16.8%residential transition loans and other residential mortgages exposure
$996.4Mresidential transition loans and other residential mortgages value
14.1%commercial mortgage loans exposure
$836.7Mcommercial mortgage loans value

Who's Involved

Ellington Financial Inc.
real estate investment trust reporting strong second-quarter results
Longbridge Financial
Ellington's subsidiary, driving reverse mortgage originations
Laurence Penn
CEO and president of Ellington Financial
JR Herlihy
Chief Financial Officer of Ellington Financial
Mark Tecotzky
Co-Chief Investment Officer of Ellington Financial
Finance of America
No. 1 issuer in the HECM MBS market
Ellington Financial Reports $54.4M Profit on Strong Longbridge Originations

↳ Why This Matters

Ellington Financial's strong quarterly results, particularly the surge in reverse mortgage originations and overall profit, demonstrate resilience and growth in its core business segments. The company's strategic moves, like acquiring a special servicer, indicate a focus on optimizing its portfolio and managing risk effectively.

Key facts

  • Ellington Financial reported Q2 2026 net income of $54.4 million.
  • Longbridge Financial originated $589.7 million in reverse mortgages in Q2 2026, a 38% increase.
  • Adjusted distributable earnings (ADE) were $75.5 million, or 60 cents per share.
  • Book value per common share increased to $13.61 as of June 30.
  • The investment portfolio segment contributed $74.2 million to net income.
  • The Longbridge reverse mortgage segment contributed $30.2 million to net income.

Ellington Financial Inc. reported a second-quarter 2026 net income of $54.4 million, a significant increase attributed to robust performance in its Longbridge Financial subsidiary's reverse mortgage operations. The company's adjusted distributable earnings (ADE) of $75.5 million, or 60 cents per share, surpassed its quarterly dividend of 39 cents per share, and book value per common share rose to $13.61 by the end of June.

The investment portfolio segment was a major contributor, generating $74.2 million in net income, while the Longbridge reverse mortgage segment added $30.2 million. Longbridge originated $589.7 million in reverse mortgages during the quarter, marking a 38% year-over-year increase. This growth was supported by strong margins, gains from two proprietary reverse mortgage securitizations, and positive servicing income.

Despite higher origination volumes, Longbridge's portfolio value declined 7% sequentially to $649.3 million due to the securitization of loans. The company's HECM Mortgage-Backed Securities (HMBS) market share reached a new high of 29%, positioning it as the second-largest issuer. Ellington's total adjusted investment portfolio stood at $4.50 billion, with non-QM loans and retained residential mortgage-backed securities representing the largest exposure at $2.69 billion.

Ellington also highlighted its upcoming acquisition of a special servicer to manage distressed borrowers and improve financial positions by reducing delinquencies and foreclosures. This move is intended to unlock value by aligning incentives and refining workout expertise.

Frequently asked questions

Ellington Financial reported a net income of $54.4 million for the second quarter of 2026.

Longbridge Financial's reverse mortgage originations jumped 38% due to strong loan credit performance and growing production volumes, supported by healthy margins and successful securitization executions.

As of June 30, Ellington Financial's book value per common share was $13.61, including dividends paid during the quarter.

Ellington Financial is close to acquiring a special servicer to manage distressed borrowers, reduce delinquencies, and improve the company's financial position.

What Happens Next

01Ellington Financial is nearing the acquisition of a special servicer.

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How It Developed

Ellington Financial reported $54.4 million in net income for Q2 2026.
Longbridge Financial's reverse mortgage originations increased 38% year-over-year.
The company completed two proprietary reverse mortgage securitizations.
Ellington's investment portfolio segment generated $74.2 million in net income.
Longbridge's reverse mortgage segment contributed $30.2 million in net income.
Book value per common share rose to $13.61 as of June 30.
Ellington is nearing the acquisition of a special servicer.

Sources

T1
Longbridge originations jump 38%, propelling Ellington to $54.4M profitHousingWire

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