Ellington Financial Inc.

Ellington Financial reported second-quarter 2026 GAAP net income of $0.43 per share and adjusted distributable earnings of $0.60 per share, driven by strong securitization execution and record proprietary reverse mortgage volume at its Longbridge segment. The company's annualized economic return was 13.6%, and book value per share rose to $13.61, up $0.05 from the prior quarter. Longbridge originations reached $590 million, a 38% year-over-year increase, with proprietary reverse mortgages representing 54% of volume. Ellington completed $2 billion in securitizations during the quarter, bringing first-half 2026 total to $4 billion, compared to $4.4 billion for all of 2025. Management expects to close the acquisition of a small residential loan servicer in September 2026 to build a best-in-class special servicing platform.

Ellington Financial's Longbridge segment generated $57.5 million in net income in the first quarter, helping the company report earnings of 78 cents per share, up from 35 cents a year earlier. Longbridge originated $515.4 million of new loans, a 52% increase from the same period in 2025, with wholesale and correspondent channels accounting for 70% of volume and retail the remaining 30%. The portfolio grew 13% sequentially to $695.1 million, driven by strong proprietary reverse mortgage originations. Results also included gains from a proprietary reverse mortgage loan securitization, interest-rate hedges, and a $17 million litigation settlement, meaning not every benefit should be viewed as recurring. Longbridge's interest expense rose to $28.8 million from $16.6 million as average borrowings increased to $2 billion from $1 billion, while investment and transaction-related expenses climbed to $15.8 million from $10.8 million.

WaFd Bank reported first-quarter revenues of $198.3 million, up 10.5% year on year and 4% above analyst expectations, with beats on net interest income and EPS. The broader group of 12 thrifts and mortgage finance stocks tracked delivered mixed results, with aggregate revenues beating consensus by 4.2% but next-quarter guidance coming in 6.6% below estimates. Rocket Companies posted the fastest revenue growth at 108% to $2.82 billion, while Franklin BSP Realty Trust had the weakest quarter, missing revenue estimates by 17.4%. Ellington Financial achieved the largest analyst estimate beat at 55.1% on revenues of $171.3 million, and Northwest Bancshares edged past expectations with a 0.8% revenue beat to $175.1 million.