STATON DANIEL C 4

What Happened

• Daniel C. Staton, Chairman of the Board and a director of Armour Residential REIT, converted vested phantom stock units into 1,523 shares of ARMOUR common stock on February 24, 2026. The conversion consisted of 1,043 shares (from a five‑year vesting grant) and 480 shares (from a ~6.5‑year vesting grant). Each unit converted had a $0 exercise price, so no cash was paid or received and the reported transaction value is $0. This was reported on a Form 4 filed February 26, 2026.

Key Details

• Transaction date: February 24, 2026 (Form 4 filed February 26, 2026 — timely)
• Transaction type/code: Conversion of derivative/phantom stock (code M)
• Shares converted/acquired: 1,043 and 480 for a total of 1,523 shares
• Price per share: $0.00; Total reported value: $0
• Shares disposed: The filing also shows corresponding derivative disposition entries (standard reporting when converting phantom units into actual shares)
• Footnotes of note:
  • F1/F3: The 1,043 and 480 shares relate to previously reported phantom stock awards that vested under multi‑year schedules (originally reported in 2021, 2023 and 2025 Forms).
  • F4: Each phantom stock unit is the economic equivalent of one share of ARMOUR common stock.
  • F2: Some shares are owned indirectly through DM Staton Family Limited Partnership; Staton is a general and limited partner and has a pecuniary interest in those shares.
• Shares owned after the transaction: Not specified in the filing (filing notes indirect holdings via a family partnership).

Context

• This was not an open‑market buy or sale but a conversion of previously awarded/vested phantom stock into actual company shares (derivative exercise). No cash changed hands in the reported conversion. Conversions of compensation awards are routine and reflect vesting schedules rather than active market buys or sells.