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CLOSED · 23:20 ET
Market ClerkRecap
Wed Oct 21 · markets closed2 signals today108 insider buys this week · $250.3MCIRO short report next: Oct 31The week ahead

EFC

Ellington Financial Inc.
NYSE · REAL ESTATE · REAL ESTATE
11.42
−0.06 −0.52%
USD · close Oct 21
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Work order
34
FLAG · shorts 34
Insiders, 90 days
0
no open-market filings in 90 days
Congress, 90 days
0 / 0
no disclosures naming it
Big money
0 / 15
none of the tracked funds disclose it
Calls on record
0
nobody we score has called it yet
MKT CAP $1.5BP/E 7.1DIV YIELD 10248.60%FCF YIELD —REV TTM —NET INCOME $194M +71.5%NET CASH $247.5M52W 11.30 – 14.01SEC XBRL · TTM TO Invalid Date

How EFC rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025
Text kept
43%
of sentences unchanged
Added
610
new sentences
Dropped
616
sentences removed
Length
−236
words, now 62,328

New in FY2025

  • Holders of Our Common Stock Based upon a review of a securities position listing as of the close of business on February 20, 2026, we had an aggregate of 194 holders of record and holders of our common stock who are nominees for an undetermined number of beneficial owners.
  • Unregistered Sales of Equity Securities Pursuant to our 2017 Plan, on December 17, 2025, we granted 61,911 OP LTIP Units to certain of our partially dedicated employees.
  • The OP LTIP Units are subject to forfeiture restrictions that will lapse with respect to 33,506 of the OP LTIP Units on December 16, 2026 and 28,405 of the OP LTIP Units on December 16, 2027.
  • On December 31, 2025, 7,657 OP LTIP Units previously granted under our 2017 Plan were converted into shares of common stock on a one-for-one basis.
  • The following graph provides a comparison of the cumulative total return on our common shares to the cumulative total return on the Standard & Poor's 500 Composite Stock Price Index, or the "S&P 500," and the FTSE National Association of Real Estate Investment Trusts Mortgage REIT Index, or the "FTSE NAREIT MREIT." The comparison is for the period from December 31, 2020 to December 31, 2025, and assumes in each case, a $100 investment on December 31, 2020 and the reinvestment of dividends.
  • The actual cumulative total returns shown on the graph above are as follows: December 31, 2020 2021 2022 2023 2024 2025 Ellington Financial Inc. $ 100.00 $ 126.33 $ 103.19 $ 121.92 $ 132.55 $ 167.05 S&P 500 100.00 128.68 105.36 133.03 166.28 195.98 FTSE NAREIT MREIT 100.00 115.56 85.11 98.04 98.25 114.13 The performance information above has been obtained from sources believed to be reliable, but neither its accuracy nor its completeness can be guaranteed.
  • As of December 31, 2025, we had an ownership interest of approximately 99.1% in the Operating Partnership.
  • The remaining ownership interest of approximately 0.9% in the Operating Partnership represents the interests in the Operating Partnership that are owned by an affiliate of our Manager, our current and certain former directors, and certain current and former Ellington employees and their related parties, and is reflected in our financial statements as a non-controlling interest.
  • Ellington is a registered investment adviser with a 31-year history of investing in the Agency and credit markets.
  • We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the "Code").
  • Provided that we maintain our qualification as a REIT, we generally will not be subject to U.S. federal, state, and local income tax on our REIT taxable income that is currently distributed to our stockholders.
  • Any taxes paid by a domestic taxable REIT subsidiary ("TRS") will reduce the cash available for distribution to our stockholders.
  • In our Investment Portfolio Segment, we invest in a diverse array of financial assets, including residential and commercial mortgage loans; residential mortgage-backed securities ("RMBS"), including RMBS for which the principal and interest payments are guaranteed by a U.S. government agency or a U.S. government-sponsored entity ("Agency RMBS"); commercial mortgage-backed securities ("CMBS"); consumer loans and asset-backed securities ("ABS") including ABS backed by consumer loans; investments referencing mortgage servicing rights on traditional forward mortgage loans ("Forward MSR-related investments"); collateralized loan obligations ("CLOs"); non-mortgage- and mortgage-related derivatives; debt and equity investments in loan origination companies; and other strategic investments.
  • Longbridge Financial, LLC ("Longbridge") originates home equity conversion mortgage loans ("HECM loans"), which are insured by the Federal Housing Administration ("FHA"), and non-FHA-insured reverse mortgage loans, which we refer to as "proprietary reverse mortgage loans." HECM loans are generally eligible for securitization into HECM-backed MBS ("HMBS"), which are guaranteed by the Government National Mortgage Association ("GNMA").
  • Agency collateralized mortgage obligations ("CMOs"), including interest only securities ("IOs"), principal only securities ("POs"), and inverse interest only securities ("IIOs").
  • CLOs backed by commercial mortgage loans ("CRE CLOs"); and .
  • ABS backed by Small Business Administration ("SBA") loans, including IOs backed by SBA loans; and .
  • To-Be-Announced mortgage pass-through certificates ("TBAs"); .
  • Credit default swaps ("CDS") on individual RMBS, on the CMBX and on other mortgage-related indices; and .
  • RMBS backed by fixed rate mortgages, Adjustable rate mortgages ("ARMs"), Option-ARMs, and Hybrid ARMs; .
  • Collateralized debt obligations ("CDOs"); .
  • RMBS backed by European residential mortgages ("European RMBS"); .
  • Credit risk transfer securities ("CRTs").
  • Asset Class Principal Assets (continued) Residential Mortgage Loans .
  • Residential mortgage loans that are not deemed "qualified mortgage" loans under the rules of the Consumer Financial Protection Bureau ("non-QM loans"); .
  • Residential non-performing mortgage loans ("NPLs"); .
  • Re-performing loans ("RPLs"), which generally are loans that were modified and/or formerly NPLs where the borrower has resumed making payments in some form or amount; .
  • Residential mortgage loans that meet the criteria for inclusion in an Agency securitization ("Agency-eligible residential mortgage loans") .
  • Home equity line of credit loans ("HELOCs").
  • Strategic equity and/or debt investments in loan originators, loan servicers, and mortgage-related entities; Other .
  • Mortgage servicing rights ("MSRs") and MSR-related investments; .
  • IO strips backed by small business administration loans.
  • Agency RMBS Our Agency RMBS assets consist primarily of whole pool (and to a lesser extent, partial pool) pass-through certificates, the principal and interest of which are guaranteed by a federally chartered corporation, such as the Federal National Mortgage Association ("Fannie Mae"), the Federal Home Loan Mortgage Corporation ("Freddie Mac"), or the Government National Mortgage Association, within the U.S.
  • Department of Housing and Urban Development ("Ginnie Mae") and which are backed by ARMs, Hybrid ARMs, or fixed-rate mortgages.
  • We maintain our portfolio of Agency RMBS in part to help maintain our qualification as a REIT and to help maintain our exclusion from registration as an investment company under the Investment Company Act.
  • Our target assets also include single-asset single-borrower CMBS ("SASB CMBS").
  • SASB CMBS can be collateralized by single properties or by a portfolio of properties.
  • Our commercial mortgage loans may be fixed or floating rate and will generally have maturities ranging from one to two years.
  • As of December 31, 2025, all of our commercial mortgage loans were first-lien loans.
  • As a result of the Arlington Merger, we, through certain of our subsidiaries, are party to various agreements that enable us to participate in the economic returns of a portfolio of forward MSRs.

and 570 more.

Gone since FY2024

  • Holders of Our Common Stock Based upon a review of a securities position listing as of the close of business on February 21, 2025, we had an aggregate of 186 holders of record and holders of our common stock who are nominees for an undetermined number of beneficial owners.
  • Unregistered Sales of Equity Securities Pursuant to our 2017 Plan, on December 12, 2024, we granted 48,826 OP LTIP Units to certain of our partially dedicated employees.
  • The OP LTIP Units are subject to forfeiture restrictions that will lapse with respect to 30,443 of the OP LTIP Units on December 12, 2025 and 18,383 of the OP LTIP Units on December 12, 2026.
  • On December 27, 2024, 16,756 unvested OP LTIP Units previously issued on September 11, 2024 were exchanged for shares of restricted common stock on a one-for-one basis.
  • The 16,756 shares of restricted common stock are subject to forfeiture restrictions that will lapse on December 26, 2025.
  • Issuer Purchases of Equity Securities We redeemed all 957,133 outstanding shares of our 8.250% Series E Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (the "Series E Preferred Stock") on December 13, 2024 (the "Redemption Date"), pursuant to the terms of the Certificate of Designations relating to the Series E Preferred Stock.
  • The Series E Preferred Stock redemption price was $25.540558 per share of Series E Preferred Stock, which was equal to the liquidation preference of $25.00 per share plus $0.540558 per share representing accrued and unpaid dividends to the Redemption Date.
  • The following graph provides a comparison of the cumulative total return on our common shares to the cumulative total return on the Standard & Poor's 500 Composite Stock Price Index, or the "S&P 500," and the FTSE National Association of Real Estate Investment Trusts Mortgage REIT Index, or the "FTSE NAREIT MREIT." The comparison is for the period from December 31, 2019 to December 31, 2024, and assumes in each case, a $100 investment on December 31, 2019 and the reinvestment of dividends.
  • The actual cumulative total returns shown on the graph above are as follows: December 31, 2019 2020 2021 2022 2023 2024 Ellington Financial Inc. $ 100.00 $ 90.17 $ 113.92 $ 93.05 $ 109.94 $ 119.53 S&P 500 100.00 118.39 152.34 124.73 157.48 196.85 FTSE NAREIT MREIT 100.00 81.38 94.05 69.27 79.79 79.96 The performance information above has been obtained from sources believed to be reliable, but neither its accuracy nor its completeness can be guaranteed.
  • As of December 31, 2024, we had an ownership interest of approximately 99.2% in the Operating Partnership.
  • The remaining ownership interest of approximately 0.8% in the Operating Partnership represents the interests in the Operating Partnership that are owned by an affiliate of our Manager, our current and certain former directors, and certain current and former Ellington employees and their related parties, and is reflected in our financial statements as a non-controlling interest.
  • Ellington is a registered investment adviser with a 30-year history of investing in the Agency and credit markets.
  • We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, or "the Code." Provided that we maintain our qualification as a REIT, we generally will not be subject to U.S. federal, state, and local income tax on our REIT taxable income that is currently distributed to our stockholders.
  • Any taxes paid by a domestic taxable REIT subsidiary, or "TRS," will reduce the cash available for distribution to our stockholders.
  • On October 3, 2022, we completed the acquisition of a controlling interest in Longbridge Financial, LLC ("Longbridge"), a reverse mortgage loan originator and servicer (the "Longbridge Transaction").
  • As a result of the Longbridge Transaction, we consolidate Longbridge's financial results.
  • In our Investment Portfolio Segment, we invest in a diverse array of financial assets, including residential and commercial mortgage loans; residential mortgage-backed securities, or "RMBS," including RMBS for which the principal and interest payments are guaranteed by a U.S. government agency or a U.S. government-sponsored entity, or "Agency RMBS"; commercial mortgage-backed securities, or "CMBS"; consumer loans and asset-backed securities, or "ABS," including ABS backed by consumer loans; investments referencing mortgage servicing rights on traditional forward mortgage loans, or "Forward MSR-related investments"; collateralized loan obligations, or "CLOs"; non-mortgage- and mortgage-related derivatives; debt and equity investments in loan origination companies; and other strategic investments.
  • Longbridge originates home equity conversion mortgage loans ("HECM loans"), which are insured by the Federal Housing Administration ("FHA"), and non-FHA-insured reverse mortgage loans, which we refer to as "proprietary reverse mortgage loans." HECM loans are generally eligible for securitization into HECM-backed MBS ("HMBS"), which are guaranteed by the Government National Mortgage Association ("GNMA").
  • Agency collateralized mortgage obligations, or "CMOs," including interest only securities, or "IOs," principal only securities, or "POs," inverse interest only securities, or "IIOs"; and CMBS and Commercial Mortgage Loans .
  • CLOs backed by commercial mortgage loans, or "CRE CLOs"; and .
  • ABS backed by Small Business Administration, or "SBA," loans, including IOs backed by SBA loans; and .
  • To-Be-Announced mortgage pass-through certificates, or "TBAs"; .
  • Credit default swaps, or "CDS," on individual RMBS, on the ABX, CMBX and PrimeX indices and on other mortgage-related indices; and .
  • RMBS backed by fixed rate mortgages, Adjustable rate mortgages, or "ARMs," Option-ARMs, and Hybrid ARMs; .
  • Collateralized debt obligations, or "CDOs"; .
  • RMBS backed by European residential mortgages, or "European RMBS"; .
  • Credit risk transfer securities, or "CRTs." Residential Mortgage Loans .
  • Residential non-performing mortgage loans, or "NPLs"; .
  • Re-performing loans, or "RPLs," which generally are loans that were modified and/or formerly NPLs where the borrower has resumed making payments in some form or amount; .
  • Home equity line of credit loans, or "HELOCs." Asset Class Principal Assets (continued) Strategic Investments in Loan Originators .
  • Strategic equity and/or debt investments in loan originators and mortgage-related entities; Other .
  • Mortgage servicing rights, or "MSRs" and MSR-related investments; .
  • Strategic equity and/or debt investments in entities related to our business; .
  • Other non-mortgage-related derivatives; and .
  • Confirmation of originator fee certificates.
  • Agency RMBS Our Agency RMBS assets consist primarily of whole pool (and to a lesser extent, partial pool) pass-through certificates, the principal and interest of which are guaranteed by a federally chartered corporation, such as the Federal National Mortgage Association, or "Fannie Mae," the Federal Home Loan Mortgage Corporation, or "Freddie Mac," or the Government National Mortgage Association, within the U.S.
  • Department of Housing and Urban Development, or "Ginnie Mae," and which are backed by ARMs, Hybrid ARMs, or fixed-rate mortgages.
  • Our target assets also include single-asset single-borrower CMBS, or "SASB CMBS." SASB CMBS can be collateralized by single properties or by a portfolio of properties.
  • Our commercial mortgage loans may be fixed or floating rate and will generally have maturities ranging from one to ten years.
  • As of December 31, 2024, all of our commercial mortgage loans were first-lien loans.

and 576 more.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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