Ellington reports $40.4M net income with 4.5% portfolio growth in Q3 2026

Ellington reported a GAAP net income of $40.4 million, or $0.31 per share, for the third quarter of 2026, according to a transcript of its earnings call on November 5, 2026. This income reflected contributions from both the investment portfolio and its Longbridge segment.

The company’s adjusted distributable earnings (ADE) were $0.45 per share, totaling $58 million, which exceeded the quarterly dividend payment. Ellington also achieved an annualized economic return of 9.4%, supported by interest rate and credit hedges that helped protect book value during late-quarter market volatility.

Ellington’s book value per share was $13.53 as of September 30, 2026, representing a 0.6% sequential decline after accounting for dividends of $0.39 per share. The total adjusted long portfolio grew by 4.5% sequentially to $4.70 billion, driven by net purchases in residential transition, prime jumbo, and commercial mortgage bridge loans.

The net interest margin in the investment portfolio increased to 3.6% in Q3 from 3.4% in the second quarter, as higher asset yields offset increased funding costs. Ellington’s Longbridge unit grew originations even as margins narrowed, contributing to the portfolio expansion.