PAPERIN STEWART J 4

What Happened
Stewart J. Paperin, a director of Armour Residential REIT, elected on February 24, 2026 to convert 1,043 vested phantom stock units into 1,043 shares of Armour common stock. The conversion involved no cash payment (reported exercise/conversion price $0.00) and did not reflect an open‑market purchase or sale.

Key Details

• Transaction date: February 24, 2026; Form 4 filed February 26, 2026 (appears timely).
• Transaction type/code: Exercise/conversion of a derivative (code M).
• Shares converted/acquired: 1,043 common shares; exercise price reported $0.00; total cash paid $0.
• Shares disposed: The filing also records the derivative units as disposed (conversion), consistent with exchanging phantom units for actual shares.
• Shares owned after transaction: Not specified in the filing.
• Notable footnotes:
  • F1: The 1,043 shares were vested phantom stock units being converted; these units were part of a five‑year phantom stock grant previously reported (Form 4s dated Feb 14, 2023 and Dec 18, 2025).
  • F2: Some or all shares are owned indirectly through the Stewart J. Paperin Family Trust; Mr. Paperin has pecuniary interest and investment control.
  • F3: Each phantom stock unit equals one share of Armour common stock.

Context
This was a conversion of vested phantom stock (a compensation/award mechanism), not an open‑market trade—no shares were sold as part of this filing. Conversions of phantom units into shares are routine vesting events for insiders and do not, by themselves, indicate buying or selling sentiment.