Longbridge sets Q1 record, surpasses its 2025 full-year profit

"Ellington Financial delivered an exceptionally strong first quarter in terms of both GAAP net income and adjusted distributable earnings, even in the face of rising market volatility and widening credit spreads, he said. Penn added that adjusted distributable earnings widely exceeded the company's dividend, with ADE reaching 55 cents per share during the quarter."

"Longbridge posted net income of $57.5 million during the quarter, up sharply from $16.4 million in the fourth quarter of 2025. Penn described Longbridge's performance as an absolutely standout quarter, citing near-record proprietary reverse mortgage origination volumes, market share gains in HECM originations and strong gain-on-sale margins. Net income at our Longbridge segment not only set a quarterly record, but it actually surpassed its 2025 full-year net income by a wide margin, Penn said."

"The company said Longbridge also benefited from gains tied to a proprietary reverse mortgage securitization, servicing income and a $17 million litigation settlement payment. CFO J.R. Herlihy said during the call that Longbridge's outsized contribution prompted the company to raise its quarterly guidance for adjusted distributable earnings to the 45-cent-per-share area, still above the company's dividend run rate."

"Ellington participated in seven securitization transactions totaling more than $2.8 billion during the quarter, compared with $1.1 billion across four transactions in the first quarter of 2025, Penn said. These higher volumes are facilitating larger deal sizes, Penn said, noting that average non-QM securitization size nearly doubled year over year."

Strong performance across a diversified portfolio occurred despite rising volatility and widening credit spreads in March. Longbridge produced exceptionally strong first-quarter results, with GAAP net income and adjusted distributable earnings rising sharply. Adjusted distributable earnings reached 55 cents per share and widely exceeded the dividend. Longbridge originated $515.4 million in new reverse mortgage loans, up 52% year over year, with near-record proprietary origination volumes, market share gains in HECM originations, and strong gain-on-sale margins. Longbridge segment net income set a quarterly record and surpassed 2025 full-year net income. Results included gains from proprietary reverse mortgage securitization, servicing income, and a $17 million litigation settlement. Guidance for adjusted distributable earnings was raised to the 45-cent-per-share area. Ellington participated in seven securitization transactions totaling more than $2.8 billion, enabling larger deal sizes and nearly doubling average non-QM securitization size year over year.

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