PAPERIN STEWART J 4

What Happened
Stewart J. Paperin, a director of Armour Residential REIT, Inc. (ARR), was granted 17,140 phantom shares (a derivative award) on May 19, 2026. The award was granted at $0.00 (no cash paid) and is reported as an acquisition of derivative securities. Upon vesting, each phantom share will convert into one share of ARMOUR common stock and will be delivered within 30 days.

Key Details

• Transaction date and type: 2026-05-19 — Grant / Award (derivative phantom shares). Report filed May 21, 2026 (timely filing).
• Amount: 17,140 phantom shares granted; grant price reported as $0.00 (no immediate cash exchanged).
• Vesting: 857 phantom shares vest beginning May 20, 2026, then 857 shares vest each Aug 20, Nov 20, Feb 20 and May 20 through Feb 20, 2031 (20 quarterly tranches totaling 17,140).
• Post-vesting delivery: Each vested phantom share converts to one share of common stock and will be issued within 30 days of vesting.
• Dividend and tax treatment: Phantom shares receive cash dividend equivalents (or the holder may elect to receive shares instead). The reporting person may elect to satisfy tax withholding by reducing the number of shares issued.
• Forfeiture and acceleration: Unvested phantom stock is forfeited upon termination of service, but will fully vest upon death, disability, or a change in control. A resignation/retirement exception applies if age + years of service ≥ 70 (subject to conditions).
• Shares owned after transaction: Not specified in the filing.

Context: This is a time‑based long‑term incentive (phantom stock) grant rather than an open‑market purchase or sale. Phantom shares are economic equivalents of common stock that convert to actual shares on vesting; they do not represent immediate cash proceeds or open‑market trading activity.