Item 2.02 Results of Operations and Financial Condition.

Ellington Financial Inc. (the "Company") is disclosing certain preliminary results of operations for the quarter ended December 31, 2022 based on currently available information.

Preliminary Fourth Quarter Results:

•Net income per share of common stock is estimated to be in the range of $0.36 to $0.38 for the quarter ended December 31, 2022.



•Adjusted distributable earnings per share of common stock is estimated to be in
the range of $0.40 to $0.44 for the quarter ended December 31, 2022. Adjusted
distributable earnings is a non-GAAP financial measure. See "Non-GAAP Financial
Measures" below for an explanation regarding the calculation of adjusted
distributable earnings.

The above information is preliminary and subject to completion, including the
completion of customary financial statement closing and review procedures for
the quarter ended December 31, 2022. As a result, the preliminary results set
forth above reflect the Company's preliminary estimate with respect to such
information, based on information currently available to management. The
Company's actual financial results for the quarter ended December 31, 2022 may
differ materially from these preliminary financial results, and may be outside
the estimated ranges. Further, these preliminary estimates are not a
comprehensive statement or estimate of the Company's financial results for the
quarter ended December 31, 2022. These preliminary estimates should not be
viewed as a substitute for full interim financial statements prepared in
accordance with GAAP and they are not necessarily indicative of the results to
be achieved in any future period. Accordingly, you should not place undue
reliance on these preliminary estimates.

These preliminary estimates, which are the responsibility of the Company's
management, were prepared by the Company's management and are based upon a
number of assumptions. Additional items that may require adjustments to these
preliminary estimates may be identified and could result in material changes to
these preliminary estimates. Preliminary estimates of results are inherently
uncertain and the Company undertakes no obligation to update this information.
The estimated financial data included in this Item 2.02 has been prepared by the
Company and is the Company's responsibility. PricewaterhouseCoopers LLP, the
Company's independent registered public accounting firm, has not audited,
reviewed, examined, compiled nor applied agreed-upon procedures with respect to
this preliminary financial information and, accordingly, PricewaterhouseCoopers
LLP does not express an opinion or provide any other form of assurance with
respect thereto.

Non-GAAP Financial Measures



In the "Preliminary Fourth Quarter Results" section above, the Company presents
an estimated range of its adjusted distributable earnings per share of common
stock for the quarter ended December 31, 2022. The Company calculates adjusted
distributable earnings as U.S. GAAP net income as adjusted for: (i) realized and
unrealized gain (loss) on securities and loans, REO, financial derivatives
(excluding periodic settlements on interest rate swaps), any borrowings carried
at fair value, and foreign currency transactions; (ii) incentive fee to
affiliate; (iii) catch-up premium amortization adjustment (as described below);
(iv) non-cash equity compensation expense; (v) provision for income taxes; (vi)
certain non-capitalized transaction costs; and (vii) other income or loss items
that are of a non-recurring nature. For certain investments in unconsolidated
entities, the Company includes the relevant components of net operating income
in adjusted distributable earnings. The catch-up premium amortization adjustment
is a quarterly adjustment to premium amortization triggered by changes in actual
and projected prepayments on the Company's Agency RMBS (accompanied by a
corresponding offsetting adjustment to realized and unrealized gains and
losses). The adjustment is calculated as of the beginning of each quarter based
on the Company's then-current assumptions about cashflows and prepayments, and
can vary significantly from quarter to quarter.

Adjusted distributable earnings is a supplemental non-GAAP financial measure.
The Company believes that the presentation of adjusted distributable earnings
provides information useful to investors, because the Company: (i) believes that
it is a useful indicator of both current and projected long-term financial
performance, in that it excludes the impact of certain current-period earnings
components that the Company believes are less useful in forecasting long-term
performance and dividend-paying ability; (ii) uses it to evaluate the effective
net yield provided by the Company's portfolio, after the effects of financial
leverage; and (iii) believes that presenting adjusted distributable earnings
assists investors in measuring and evaluating its operating performance, and
comparing its operating performance to that of its residential mortgage REIT
peers. Please note, however, that: (I) the Company's calculation of adjusted
distributable earnings may differ from the calculation of similarly titled
non-GAAP financial measures by the Company's peers, with the result that these
non-GAAP financial measures might not be directly comparable; and (II) adjusted
distributable earnings excludes certain items that may impact the amount of cash
that is actually available for distribution.

In addition, because adjusted distributable earnings is an incomplete measure of
the Company's financial results and differs from net income computed in
accordance with U.S. GAAP, it should be considered supplementary to, and not as
a substitute for, net income computed in accordance with U.S. GAAP.

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Furthermore, adjusted distributable earnings is different from REIT taxable
income. As a result, the determination of whether the Company has met the
requirement to distribute at least 90% of the Company's annual REIT taxable
income (subject to certain adjustments) to the Company's stockholders, in order
to maintain the Company's qualification as a REIT, is not based on whether the
Company distributed 90% of its adjusted distributable earnings.

In setting dividends, the Company's board of directors considers earnings, liquidity, financial condition, REIT distribution requirements, and financial covenants, along with other factors that the board of directors may deem relevant from time to time.



The following table reconciles, for the quarter ended December 31, 2022, the
Company's estimated range of adjusted distributable earnings per share of common
stock to the Company's estimated range of net income per share of common stock,
which the Company believes is the most directly comparable U.S. GAAP measure:
                                                                 Estimated Lower Bound           Estimated Upper Bound
Net Income (Loss) before dividends on preferred stock          $                 0.42          $                 0.44
Dividends on preferred stock                                                    (0.06)                          (0.06)
Net Income (Loss)                                                                0.36                            0.38
Income tax expense (benefit)                                                    (0.05)                          (0.05)
Net Income (Loss) before income tax expense (benefit)                            0.31                            0.33

Adjustments:


Realized and unrealized (gains)losses, net(1)                                   (0.02)                           0.02
Incentive fee to affiliate                                                          -                               -

Non-capitalized transaction costs and other expense adjustments

                                                                      0.05                            0.07

Adjusted distributable earnings from investments in unconsolidated entities and other adjustments(2)

                                 0.02                            0.04
Adjusted Distributable Earnings                                $                 0.40          $                 0.44


(1)Includes adjustments for certain realized and unrealized (gains) losses on
securities and loans, REO, mortgage servicing rights, financial derivatives,
secured borrowings, at fair value, senior notes, at fair value, foreign currency
transactions, and investments in unconsolidated entities.
(2)Includes net interest income and operating expenses for certain investments
in unconsolidated entities as well as negative (positive) component of interest
income represented by Catch-up Premium Amortization Adjustment.

Item 8.01. Other Events.

The information set forth above in Item 2.02 is incorporated herein by reference.

Forward-Looking Statements



This Current Report on Form 8-K contains forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements involve numerous risks and
uncertainties. The Company's actual results may differ from its beliefs,
expectations, estimates, and projections and, consequently, you should not rely
on these forward-looking statements as predictions of future events.
Forward-looking statements are not historical in nature and can be identified by
words such as "believe," "expect," "anticipate," "estimate," "project," "plan,"
"continue," "intend," "should," "would," "could," "goal," "objective," "will,"
"may," "seek" or similar expressions or their negative forms, or by references
to strategy, plans, or intentions. Examples of forward-looking statements in
this Current Report on Form 8-K include statements regarding the Company's
preliminary financial results for the quarter ended December 31, 2022. These
forward-looking statements are based on the Company's current assumptions,
expectations and beliefs and are subject to numerous risks, including, among
other things, those set forth under the caption "Risk Factors" in the Company's
most recent filings with the Securities and Exchange Commission, uncertainties,
assumptions and changes in circumstances that may cause the Company's actual
results, performance or achievements to differ materially from those expressed
or implied in any forward-looking statement. The Company cautions investors not
to place undue reliance on the forward-looking statements contained in this
Current Report on Form 8-K.

Further information on these and other factors that could affect the Company's
financial results and the forward-looking statements in this Current Report on
Form 8-K is included in the Company's filings with the Securities and Exchange
Commission, including, among others, the Company's Annual Report on Form 10-K
for the year ended December 31, 2021 and the Company's Quarterly Report on Form
10-Q for the quarter ended September 30, 2022, particularly under the captions
"Risk Factors" and "Management's Discussion and Analysis of Financial Condition
and Results of Operations."

The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

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