Ellington Financial Announces $50 Million Common Stock Repurchase Program

Rhea-AI Summary

Ellington Financial Inc. (NYSE: EFC) has authorized a new repurchase program for up to $50 million of its common stock, building on its previous authority for 1.55 million shares established in 2018. The company has already repurchased nearly all of those shares. The new buyback program does not impose any obligation to acquire specific shares and has no definitive termination date, as repurchases will depend on market conditions and liquidity. The company intends to use available liquidity to fund these repurchases, which may occur through various methods.

Positive

• Authorization of up to $50 million share repurchase program.
• Reinforces commitment to enhancing shareholder value.
• Builds upon nearly complete utilization of prior repurchase authority.

Negative

• None.

OLD GREENWICH, Conn.--(BUSINESS WIRE)-- Ellington Financial Inc. (NYSE: EFC) (the “Company”) announced today that its Board of Directors has authorized the repurchase of up to $50 million of the Company's common stock. This authorization extends the Company’s ability to repurchase common stock beyond the 1.55 million shares previously authorized in 2018. Through today, the Company has repurchased nearly all of the 1.55 million shares previously authorized.

The common stock repurchase program does not obligate the Company to acquire any specific number of shares, or at all, and has no termination date. The timing and extent to which the Company repurchases shares of its common stock will depend upon, among other factors, market conditions, share price, liquidity, regulatory requirements and other factors, and repurchases may be commenced or suspended at any time without prior notice. The Company expects to fund any common stock repurchases with available liquidity. Repurchases of shares under the program may be made through open market purchases or privately negotiated transactions, including repurchase plans that satisfy the conditions of Rule 10b5-1 of the Securities Exchange Act of 1934, as amended.

Cautionary Statement Regarding Forward-Looking Statements

This press release 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. Forward-looking statements are based on our beliefs, assumptions and expectations of our future operations, business strategies, performance, financial condition, liquidity and prospects, taking into account information currently available to us. These beliefs, assumptions, and expectations are subject to risks and uncertainties and can change as a result of many possible events or factors, not all of which are known to us. If a change occurs, our business, financial condition, liquidity, results of operations and strategies may vary materially from those expressed or implied in our forward-looking statements. The following factors are examples of those that could cause actual results to vary from our forward-looking statements: changes in interest rates and the market value of the Company's investments, market volatility, changes in mortgage default rates and prepayment rates, the Company's ability to borrow to finance its assets, changes in government regulations affecting the Company's business, the Company's ability to maintain its exclusion from registration under the Investment Company Act of 1940, the Company's ability to maintain its qualification as a real estate investment trust, or "REIT," and other changes in market conditions and economic trends, such as changes to fiscal or monetary policy, heightened inflation, slower growth or recession, and currency fluctuations. Furthermore, forward-looking statements are subject to risks and uncertainties, including, among other things, those described under Item 1A of the Company's Annual Report on Form 10-K, which can be accessed through the Company's website at www.ellingtonfinancial.com or at the SEC's website (www.sec.gov). Other risks, uncertainties, and factors that could cause actual results to differ materially from those projected may be described from time to time in reports the Company files with the SEC, including reports on Forms 10-Q, 10-K and 8-K. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

About Ellington Financial

Ellington Financial invests in a diverse array of financial assets, including residential and commercial mortgage loans, reverse mortgage loans, residential and commercial mortgage-backed securities, consumer loans and asset-backed securities backed by consumer loans, collateralized loan obligations, non-mortgage and mortgage-related derivatives, debt and equity investments in loan origination companies, and other strategic investments. Ellington Financial is externally managed and advised by Ellington Financial Management LLC, an affiliate of Ellington Management Group, L.L.C.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230321005957/en/

Investors:

Ellington Financial Inc.

Investor Relations

(203) 409-3575

info@ellingtonfinancial.com



or



Media:

Amanda Shpiner/Sara Widmann

Gasthalter & Co.

for Ellington Financial

(212) 257-4170

Ellington@gasthalter.com

Source: Ellington Financial Inc.

FAQ

What is the purpose of the $50 million share buyback for EFC?

The $50 million share buyback aims to enhance shareholder value and signals confidence in the company's financial health.

How many shares has Ellington Financial repurchased so far?

Ellington Financial has repurchased nearly all of the 1.55 million shares authorized in 2018.

When will EFC start buying back shares under the new program?

The timing of share repurchases will depend on market conditions, share price, and liquidity.

What factors will affect EFC's share repurchase decisions?

Decisions on share repurchases will be influenced by market conditions, regulatory requirements, and available liquidity.