HOLLIHAN JOHN P III 4

What Happened John P. Hollihan III, a director of Armour Residential REIT, converted 1,043 vested phantom stock units on Feb 24, 2026. He received 625 shares of Armour common stock and elected to convert the remaining 418 units to cash to pay income taxes. The 418 shares were effectively disposed at $17.89 per share, yielding $7,478. The conversion had no exercise price per unit (reported as $0.00).

Key Details

• Transaction date: February 24, 2026; Form 4 filed Feb 26, 2026 (timely).
• Actions reported: M (conversion/exercise of derivative) and F (cash-out for tax withholding).
• Shares received: 625 Armour common shares.
• Shares disposed (cash withholding): 418 units converted to cash at $17.89 each = $7,478.
• Shares owned after transaction: not specified in the filing.
• Footnotes: The 1,043 units were vested phantom stock units (each unit = one common share) that vest over a five-year period; the filing references prior Form 4s dated Feb 14, 2023 and Dec 18, 2025.
• No 10b5-1 plan or other trading plan was reported.

Context Phantom stock units are a derivative award that track the economic value of common shares; converting them into shares and cash for taxes is a common administrative step rather than an open-market purchase or a discretionary sale. Because 418 units were converted to cash solely to cover tax withholding, this transaction should be viewed as routine tax-related disposition rather than a market-driven sell signal.