Ellington Credit Company (EARN) investor relations material

Executive summary

• Q2 2026 marked a key inflection point with rapid portfolio repositioning, capital deployment, and improved credit fundamentals, resulting in an 8.1% economic return and upgraded portfolio quality.

• GAAP net income was $12.3 million ($0.33 per share), with net investment income of $6.1 million ($0.16 per share) and adjusted net investment income of $5.7 million ($0.15 per share).

• Net asset value (NAV) per share rose to $4.18 as of June 30, 2026, with total NAV at $159.7 million; July 31, 2026 NAV estimate is $4.20–$4.26 per share.

• CLO portfolio grew 8.5% to $334.1 million, driven by active trading, mark-to-market gains, and portfolio rotation.

• Management expects net investment income to grow as excess liquidity is deployed and leverage is selectively increased.

Financial highlights

• Reported GAAP net income of $0.33 per share and net investment income of $0.16 per share for Q2 2026; adjusted net investment income was $0.15 per share.

• NAV per share increased to $4.18, with total NAV rising to $159.7 million from $153.8 million sequentially.

• $0.24 per share distributed during the quarter; monthly distributions of $0.08 per share declared through August 2026.

• CLO portfolio generated $17.6 million in recurring cash distributions ($0.47 per share).

• Raised $2.6 million through issuance of 579,416 common shares at a 5% premium to NAV.

Outlook and guidance

• NII is expected to reach the low $0.20s per share over the next couple of quarters.

• Management anticipates higher net investment income as liquidity is deployed and leverage increased; portfolio rotation and active trading will focus on higher-yielding, longer-dated, and higher-quality investments.

• NAV estimate for July 31, 2026 is $4.20–$4.26 per share, reflecting continued portfolio growth and stable performance.

• Management remains comfortable with the current dividend level and sees further upside as remaining balance sheet capacity is deployed.

• Monthly distributions of $0.08 per share declared through August 2026.