Ellington Financial Inc. Reports First Quarter 2022 Results
Ellington Financial reported a net loss of $(9.9) million, or $(0.17) per share, for Q1 2022. Core Earnings were positive at $23.2 million, translating to $0.40 per share. The company's book value per share was $17.74, with a 10.7% dividend yield based on a closing stock price of $16.86. The credit strategy generated $16.5 million in gross income, but the agency strategy incurred a gross loss of $(20.1) million. Total long credit portfolio grew by 11% to $2.301 billion, while debt-to-equity ratio stands at 3.2:1 as of March 31, 2022. Significant strategic financings were completed, providing ample liquidity for future investments.
- Core Earnings of $23.2 million, or $0.40 per share.
- 11% growth in total long credit portfolio to $2.301 billion.
- Successful $210 million senior unsecured note offering expected to be accretive to earnings.
- Dividend yield of 10.7% based on May 4, 2022 closing price.
- Strong balance sheet and ample liquidity for investment opportunities.
- Net loss of $(9.9) million, or $(0.17) per share.
- Agency strategy gross loss of $(20.1) million.
- Total long Agency RMBS portfolio decreased by 11% to $1.502 billion.
- Rising interest rates and market volatility led to significant unrealized losses.
Highlights
-
Net loss of
, or$(9.9) million per common share.$(0.17) -
Core Earnings1 of
, or$23.2 million per share.$0.40 -
Book value per common share as of
March 31, 2022 of , including the effects of dividends of$17.74 per common share for the quarter.$0.45 -
Credit strategy gross income of
for the quarter, or$16.5 million per share.$0.28 -
Agency strategy gross loss of
for the quarter, or$(20.1) million per share.$(0.34) -
Dividend yield of
10.7% based on theMay 4, 2022 closing stock price of per share, and monthly dividend of$16.86 per common share declared on$0.15 May 2, 2022 . -
Debt-to-equity ratio of 3.2:1 and recourse debt-to-equity ratio of 2.3:12 as of
March 31, 2022 . -
Cash and cash equivalents of
as of$363.5 million March 31, 2022 , in addition to other unencumbered assets of .$632.5 million -
Issuance of
of$210 million 5.875% senior unsecured notes dueApril 2027 .
First Quarter 2022 Results
"Despite elevated volatility, soaring interest rates, and weakness in most equity and fixed income markets,
"We continued to reap significant benefits from our loan portfolios in the first quarter, as they not only generated positive returns, but thanks to their short duration, they also continued to supply us with a steady stream of recyclable capital through paydowns and payoffs. Also during the quarter, we executed on a series of strategic financing transactions which, combined with the capital returned through portfolio paydowns, have provided us with significant dry powder to deploy, just as we see reinvestment yields rising rapidly and pricing dislocations emerging in various sectors.
"On the final day of the quarter, we successfully completed a
"Moving forward, our strong balance sheet and ample liquidity should allow us to capitalize on the many highly attractive investment opportunities we are seeing, particularly in our proprietary loan pipelines. Furthermore, our loan originator affiliates, with the support of
Financial Results
The Company's total long credit portfolio3 grew by
The Company's overall debt-to-equity ratio, adjusted for unsettled purchases and sales, increased to 3.2:1 as of
The Company's credit strategy generated total gross income of
During the quarter, the Company’s CMBS, non-Agency RMBS, residential re-performing loan, CLO, and corporate debt and equity strategies had the highest returns on allocated equity, inclusive of related hedges. Meanwhile, strong net interest income4 drove positive results in its short-duration loan portfolios, including small balance commercial mortgage loans, residential transition loans, and consumer loans. In addition, the Company’s portfolio of retained non-QM tranches appreciated during the quarter, driven by substantial appreciation of its non-QM interest-only securities, as rising mortgage rates led to lower actual and projected prepayment speeds. The Company also had significant net gains on its interest rate hedges.
In contrast, rapidly rising interest rates and widening yield spreads generated significant net unrealized losses on the Company’s unsecuritized non-QM loans, while also compressing gain-on-sale margins for the Company's loan originator affiliates. LendSure, while still profitable for the quarter, revised downward its earnings projections for 2022, and Longbridge generated a net loss for the quarter. As a result, the Company experienced a significant unrealized loss on its strategic investments in loan originators. Importantly, Longbridge's net loss was due to a reduction in the value of its MSR portfolio, whereas its origination segment was still profitable during the quarter.
The first quarter was challenging for leveraged Agency RMBS portfolios. Volatility increased, interest rates rose sharply, and the yield curve flattened significantly, as the market reacted to revised expectations for the
Agency RMBS experienced significant duration extension with interest rates materially higher, while the volatility drove significant widening in yield spreads. Agency RMBS prices declined sharply during the quarter, and Agency RMBS significantly underperformed
Since the Company's specified pools are relatively seasoned they offer both prepayment protection and extension protection relative to their TBA counterparts, which are now beginning to include newer issue, more prepayment-sensitive pools. While the surge in mortgage rates during the quarter caused the value of prepayment protection to fall substantially, it also enhanced the value of extension protection. After taking into account these partially offsetting factors, pay-ups for the Company’s existing specified pool portfolio declined over the course of the quarter. However, the Company net sold pools during the quarter, and these net sales generally consisted of pools with lower payups. Overall, average pay-ups for the Company's specified pool portfolio declined only slightly quarter-over-quarter, to
During the quarter, the Company continued to hedge interest rate risk through the use of interest rate swaps and short positions in TBAs,
___________________________
1 Core Earnings is a non-GAAP financial measure. See "Reconciliation of Net Income (Loss) to Core Earnings" below for an explanation regarding the calculation of Core Earnings. |
2 Excludes repo borrowings at certain unconsolidated entities that are recourse to us. Including such borrowings, the Company's debt-to-equity ratio based on total recourse borrowings was 2.5:1 as of |
3 Includes REO at the lower of cost or fair value. Excludes hedges and other derivative positions, as well as tranches of the Company's consolidated non-QM securitization trusts that were sold to third parties, but that are consolidated for |
4 Excludes any interest income and interest expense items from Interest rate hedges, net and Credit hedges and other activities, net. |
The following tables summarize the Company's investment portfolio holdings as of
Credit Portfolio(1) |
||||||||||||
|
|
|
|
|
||||||||
($ in thousands) |
|
Fair Value |
|
% |
|
Fair Value |
|
% |
||||
Dollar Denominated: |
|
|
|
|
|
|
|
|
||||
CLOs(2) |
|
$ |
45,549 |
|
1.3 |
% |
|
$ |
60,903 |
|
2.0 |
% |
CMBS |
|
|
31,111 |
|
0.9 |
% |
|
|
25,643 |
|
0.8 |
% |
Commercial mortgage loans and REO(4)(5) |
|
|
516,810 |
|
14.8 |
% |
|
|
387,165 |
|
12.8 |
% |
Consumer loans and ABS backed by consumer loans(2) |
|
|
110,167 |
|
3.1 |
% |
|
|
153,124 |
|
5.1 |
% |
Corporate debt and equity and corporate loans |
|
|
16,651 |
|
0.5 |
% |
|
|
20,128 |
|
0.7 |
% |
Debt and equity investments in loan origination entities(3) |
|
|
135,420 |
|
3.9 |
% |
|
|
141,315 |
|
4.7 |
% |
Non-Agency RMBS |
|
|
186,452 |
|
5.3 |
% |
|
|
191,728 |
|
6.3 |
% |
Residential mortgage loans and REO(4) |
|
|
2,434,367 |
|
69.4 |
% |
|
|
2,017,219 |
|
66.6 |
% |
Non-Dollar Denominated: |
|
|
|
|
|
|
|
|
||||
CLOs(2) |
|
|
1,939 |
|
0.1 |
% |
|
|
3,092 |
|
0.1 |
% |
Consumer loans and ABS backed by consumer loans |
|
|
5 |
|
— |
% |
|
|
213 |
|
— |
% |
Corporate debt and equity |
|
|
487 |
|
— |
% |
|
|
13 |
|
— |
% |
RMBS(6) |
|
|
24,543 |
|
0.7 |
% |
|
|
25,846 |
|
0.9 |
% |
Total Long Credit Portfolio |
|
$ |
3,503,501 |
|
100.0 |
% |
|
$ |
3,026,389 |
|
100.0 |
% |
Less: Non-retained tranches of consolidated securitization trusts |
|
|
1,202,644 |
|
|
|
|
961,495 |
|
|
||
Total Long Credit Portfolio excluding non-retained tranches of consolidated securitization trusts |
|
$ |
2,300,857 |
|
|
|
$ |
2,064,894 |
|
|
(1) |
This information does not include |
|
(2) | Includes equity investments in securitization-related vehicles. |
|
(3) | Includes corporate loans to certain loan origination entities in which the Company holds an equity investment. |
|
(4) |
In accordance with |
|
(5) | Includes equity investments in unconsolidated entities holding small balance commercial mortgage loans and REO. |
|
(6) | Includes an equity investment in an unconsolidated entity holding European RMBS. |
Agency RMBS Portfolio |
||||||||||||
|
|
|
|
|
||||||||
($ in thousands) |
|
Fair Value |
|
% |
|
Fair Value |
|
% |
||||
Long Agency RMBS: |
|
|
|
|
|
|
|
|
||||
Fixed Rate |
|
$ |
1,417,717 |
|
94.3 |
% |
|
$ |
1,600,862 |
|
94.3 |
% |
Floating Rate |
|
|
8,938 |
|
0.6 |
% |
|
|
9,456 |
|
0.6 |
% |
Reverse Mortgages |
|
|
49,216 |
|
3.3 |
% |
|
|
53,010 |
|
3.1 |
% |
IOs |
|
|
26,620 |
|
1.8 |
% |
|
|
33,288 |
|
2.0 |
% |
Total Long Agency RMBS |
|
$ |
1,502,491 |
|
100.0 |
% |
|
$ |
1,696,616 |
|
100.0 |
% |
The following table summarizes the Company's outstanding borrowings and debt-to-equity ratios as of
|
|
|
|
|
||||||
|
|
Outstanding
|
|
Debt-to-
|
|
Outstanding
|
|
Debt-to-
|
||
|
|
(In thousands) |
|
|
|
(In thousands) |
|
|
||
Recourse borrowings(3)(4) |
|
$ |
3,061,579 |
|
2.3:1 |
|
$ |
2,606,381 |
|
2.0:1 |
Non-recourse borrowings(4) |
|
|
1,216,542 |
|
0.9:1 |
|
|
1,030,172 |
|
0.7:1 |
Total Borrowings |
|
$ |
4,278,121 |
|
3.2:1 |
|
$ |
3,636,553 |
|
2.7:1 |
Total Equity |
|
$ |
1,322,938 |
|
|
|
$ |
1,323,556 |
|
|
Recourse borrowings net of unsettled purchases and sales |
|
|
|
2.3:1 |
|
|
|
2.0:1 |
||
Total borrowings net of unsettled purchases and sales |
|
|
|
3.2:1 |
|
|
|
2.8:1 |
(1) | Includes borrowings under repurchase agreements, other secured borrowings, other secured borrowings, at fair value, and senior unsecured notes, at par. |
|
(2) | Overall debt-to-equity ratio is computed by dividing outstanding borrowings by total equity. The debt-to-equity ratio does not account for liabilities other than debt financings. |
|
(3) |
Excludes repo borrowings at certain unconsolidated entities that are recourse to the Company. Including such borrowings, the Company's debt-to-equity ratio based on total recourse borrowings is 2.5:1 and 2.0:1 as of |
|
(4) | All of the Company's non-recourse borrowings are secured by collateral. In the event of default under a non-recourse borrowing, the lender has a claim against the collateral but not any of the other assets held by the Company or its consolidated subsidiaries. In the event of default under a recourse borrowing, the lender's claim is not limited to the collateral (if any). |
The following table summarizes the Company's operating results for the three-month periods ended
|
|
Three-Month
|
|
Per Share |
|
Three-Month
|
|
Per Share |
||||||||
(In thousands, except per share amounts) |
|
|
|
|
|
|
|
|
||||||||
Credit: |
|
|
|
|
|
|
|
|
||||||||
Interest income and other income(2) |
|
$ |
44,506 |
|
|
$ |
0.76 |
|
|
$ |
41,647 |
|
|
$ |
0.73 |
|
Realized gain (loss), net |
|
|
7,339 |
|
|
|
0.13 |
|
|
|
(497 |
) |
|
|
(0.01 |
) |
Unrealized gain (loss), net (3) |
|
|
(23,832 |
) |
|
|
(0.41 |
) |
|
|
(7,704 |
) |
|
|
(0.13 |
) |
Interest rate hedges, net(4) |
|
|
13,930 |
|
|
|
0.24 |
|
|
|
3,903 |
|
|
|
0.07 |
|
Credit hedges and other activities, net(5) |
|
|
1,420 |
|
|
|
0.02 |
|
|
|
(405 |
) |
|
|
(0.01 |
) |
Interest expense(6) |
|
|
(12,245 |
) |
|
|
(0.21 |
) |
|
|
(9,521 |
) |
|
|
(0.17 |
) |
Other investment related expenses |
|
|
(9,073 |
) |
|
|
(0.16 |
) |
|
|
(5,979 |
) |
|
|
(0.10 |
) |
Earnings (losses) from investments in unconsolidated entities |
|
|
(5,506 |
) |
|
|
(0.09 |
) |
|
|
30,318 |
|
|
|
0.53 |
|
Total Credit profit (loss) |
|
|
16,539 |
|
|
|
0.28 |
|
|
|
51,762 |
|
|
|
0.91 |
|
Agency RMBS: |
|
|
|
|
|
|
|
|
||||||||
Interest income |
|
|
8,198 |
|
|
|
0.14 |
|
|
|
10,527 |
|
|
|
0.18 |
|
Realized gain (loss), net |
|
|
(12,398 |
) |
|
|
(0.21 |
) |
|
|
(1,116 |
) |
|
|
(0.02 |
) |
Unrealized gain (loss), net |
|
|
(75,283 |
) |
|
|
(1.29 |
) |
|
|
(17,242 |
) |
|
|
(0.30 |
) |
Interest rate hedges and other activities, net(4) |
|
|
61,172 |
|
|
|
1.05 |
|
|
|
7,347 |
|
|
|
0.13 |
|
Interest expense(6) |
|
|
(1,176 |
) |
|
|
(0.02 |
) |
|
|
(958 |
) |
|
|
(0.02 |
) |
Other investment related expenses |
|
|
(610 |
) |
|
|
(0.01 |
) |
|
|
— |
|
|
|
— |
|
Total Agency RMBS profit (loss) |
|
|
(20,097 |
) |
|
|
(0.34 |
) |
|
|
(1,442 |
) |
|
|
(0.03 |
) |
Total Credit and Agency RMBS profit (loss) |
|
|
(3,558 |
) |
|
|
(0.06 |
) |
|
|
50,320 |
|
|
|
0.88 |
|
Other interest income (expense), net |
|
|
(16 |
) |
|
|
— |
|
|
|
(13 |
) |
|
|
— |
|
Income tax (expense) benefit |
|
|
6,960 |
|
|
|
0.12 |
|
|
|
4 |
|
|
|
— |
|
Other expenses |
|
|
(9,884 |
) |
|
|
(0.17 |
) |
|
|
(8,215 |
) |
|
|
(0.14 |
) |
Net income (loss) (before incentive fee) |
|
|
(6,498 |
) |
|
|
(0.11 |
) |
|
|
42,096 |
|
|
|
0.74 |
|
Incentive fee |
|
|
— |
|
|
|
— |
|
|
|
(3,246 |
) |
|
|
(0.06 |
) |
Net income (loss) |
|
|
(6,498 |
) |
|
|
(0.11 |
) |
|
$ |
38,850 |
|
|
$ |
0.68 |
|
Less: Dividends on preferred stock |
|
|
3,824 |
|
|
|
0.07 |
|
|
|
2,295 |
|
|
|
0.04 |
|
Less: Net income (loss) attributable to non-participating non-controlling interests |
|
|
(294 |
) |
|
|
(0.01 |
) |
|
|
1,864 |
|
|
|
0.03 |
|
Net income (loss) attributable to common stockholders and participating non-controlling interests |
|
|
(10,028 |
) |
|
|
(0.17 |
) |
|
|
34,691 |
|
|
|
0.61 |
|
Less: Net income (loss) attributable to participating non-controlling interests |
|
|
(126 |
) |
|
|
|
|
420 |
|
|
|
||||
Net income (loss) attributable to common stockholders |
|
$ |
(9,902 |
) |
|
$ |
(0.17 |
) |
|
$ |
34,271 |
|
|
$ |
0.61 |
|
Weighted average shares of common stock and convertible units(7) outstanding |
|
|
58,347 |
|
|
|
|
|
57,263 |
|
|
|
||||
Weighted average shares of common stock outstanding |
|
|
57,614 |
|
|
|
|
|
56,569 |
|
|
|
(1) | Conformed to current period presentation. |
|
(2) | Other income primarily consists of rental income on real estate owned and loan origination fees. |
|
(3) |
For the three-month period ended |
|
(4) |
Includes |
|
(5) | Other activities include certain equity and other trading strategies and related hedges, and net realized and unrealized gains (losses) on foreign currency. |
|
(6) | Includes allocable portion of interest expense on the Company's senior unsecured notes. |
|
(7) |
Convertible units include |
About
Conference Call
The Company will host a conference call at
A dial-in replay of the conference call will be available on
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. Actual results may differ from the Company's 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. Examples of forward-looking statements in this press release include without limitation management's beliefs regarding the current economic and investment environment and the Company's ability to implement its investment and hedging strategies, performance of the Company's investment and hedging strategies, the Company's exposure to prepayment risk in its Agency portfolio, and statements regarding the drivers of the Company's returns. The Company's results can fluctuate from month to month and from quarter to quarter depending on a variety of factors, some of which are beyond the Company's control and/or are difficult to predict, including, without limitation, changes in interest rates and the market value of the Company's investments, 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 qualify and maintain its qualification as a real estate investment trust, or "REIT"; and other changes in market conditions and economic trends, including changes resulting from the ongoing spread and economic effects of the novel coronavirus (COVID-19) pandemic, and associated responses to the pandemic. 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, as amended, which can be accessed through the Company's website at www.ellingtonfinancial.com or at the
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) |
|||||||
|
Three-Month Period Ended |
||||||
|
|
|
|
||||
(In thousands, except per share amounts) |
|
|
|
||||
NET INTEREST INCOME |
|
|
|
||||
Interest income |
$ |
51,074 |
|
|
$ |
49,390 |
|
Interest expense |
|
(14,017 |
) |
|
|
(10,918 |
) |
Total net interest income |
|
37,057 |
|
|
|
38,472 |
|
Other Income (Loss) |
|
|
|
||||
Realized gains (losses) on securities and loans, net |
|
806 |
|
|
|
(3,609 |
) |
Realized gains (losses) on financial derivatives, net |
|
23,335 |
|
|
|
7,064 |
|
Realized gains (losses) on real estate owned, net |
|
(27 |
) |
|
|
1,774 |
|
Unrealized gains (losses) on securities and loans, net |
|
(151,153 |
) |
|
|
(35,809 |
) |
Unrealized gains (losses) on financial derivatives, net |
|
45,307 |
|
|
|
4,171 |
|
Unrealized gains (losses) on real estate owned, net |
|
(571 |
) |
|
|
176 |
|
Unrealized gains (losses) on other secured borrowings, at fair value, net |
|
55,641 |
|
|
|
10,899 |
|
Other, net |
|
1,220 |
|
|
|
2,830 |
|
Total other income (loss) |
|
(25,442 |
) |
|
|
(12,504 |
) |
EXPENSES |
|
|
|
||||
Base management fee to affiliate (Net of fee rebates of |
|
4,266 |
|
|
|
3,115 |
|
Incentive fee to affiliate |
|
— |
|
|
|
3,246 |
|
Investment related expenses: |
|
|
|
||||
Servicing expense |
|
1,524 |
|
|
|
1,280 |
|
Debt issuance costs related to Other secured borrowings, at fair value |
|
2,232 |
|
|
|
1,586 |
|
Debt issuance costs related to Senior notes, at fair value |
|
3,615 |
|
|
|
— |
|
Other |
|
2,312 |
|
|
|
3,113 |
|
Professional fees |
|
1,177 |
|
|
|
1,979 |
|
Compensation expense |
|
2,560 |
|
|
|
1,357 |
|
Other expenses |
|
1,881 |
|
|
|
1,764 |
|
Total expenses |
|
19,567 |
|
|
|
17,440 |
|
Net Income (Loss) before Income Tax Expense (Benefit) and Earnings from Investments in Unconsolidated Entities |
|
(7,952 |
) |
|
|
8,528 |
|
Income tax expense (benefit) |
|
(6,960 |
) |
|
|
(4 |
) |
Earnings (losses) from investments in unconsolidated entities |
|
(5,506 |
) |
|
|
30,318 |
|
Net Income (Loss) |
|
(6,498 |
) |
|
|
38,850 |
|
Net Income (Loss) Attributable to Non-Controlling Interests |
|
(420 |
) |
|
|
2,284 |
|
Dividends on Preferred Stock |
|
3,824 |
|
|
|
2,295 |
|
Net Income (Loss) Attributable to Common Stockholders |
$ |
(9,902 |
) |
|
$ |
34,271 |
|
Net Income (Loss) per Common Share: |
|
|
|
||||
Basic and Diluted |
$ |
(0.17 |
) |
|
$ |
0.61 |
|
Weighted average shares of common stock outstanding |
|
57,614 |
|
|
|
56,569 |
|
Weighted average shares of common stock and convertible units outstanding |
|
58,347 |
|
|
|
57,263 |
|
(1) | Conformed to current period presentation. |
CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED) |
|||||||
|
As of |
||||||
(In thousands, except share amounts) |
|
|
|
||||
ASSETS |
|
|
|
||||
Cash and cash equivalents |
$ |
363,529 |
|
|
$ |
92,661 |
|
Restricted cash |
|
175 |
|
|
|
175 |
|
Securities, at fair value |
|
1,877,529 |
|
|
|
2,087,360 |
|
Loans, at fair value |
|
2,884,627 |
|
|
|
2,415,321 |
|
Investments in unconsolidated entities, at fair value |
|
219,303 |
|
|
|
195,643 |
|
Real estate owned |
|
24,533 |
|
|
|
24,681 |
|
Financial derivatives–assets, at fair value |
|
65,082 |
|
|
|
18,894 |
|
Reverse repurchase agreements |
|
131,243 |
|
|
|
123,250 |
|
Due from brokers |
|
122,825 |
|
|
|
93,549 |
|
Investment related receivables |
|
134,460 |
|
|
|
122,175 |
|
Other assets |
|
3,959 |
|
|
|
3,710 |
|
Total Assets |
$ |
5,827,265 |
|
|
$ |
5,177,419 |
|
LIABILITIES |
|
|
|
||||
Securities sold short, at fair value |
$ |
79,679 |
|
|
$ |
120,525 |
|
Repurchase agreements |
|
2,717,638 |
|
|
|
2,469,763 |
|
Financial derivatives–liabilities, at fair value |
|
16,528 |
|
|
|
12,298 |
|
Due to brokers |
|
36,043 |
|
|
|
2,233 |
|
Investment related payables |
|
59,375 |
|
|
|
39,048 |
|
Other secured borrowings |
|
47,941 |
|
|
|
96,622 |
|
Other secured borrowings, at fair value |
|
1,216,542 |
|
|
|
984,168 |
|
Senior notes, net |
|
85,890 |
|
|
|
85,802 |
|
Senior notes, at fair value |
|
210,000 |
|
|
|
— |
|
Base management fee payable to affiliate |
|
4,266 |
|
|
|
3,115 |
|
Incentive fee payable to affiliate |
|
— |
|
|
|
3,246 |
|
Dividend payable |
|
11,615 |
|
|
|
10,375 |
|
Interest payable |
|
3,749 |
|
|
|
4,570 |
|
Accrued expenses and other liabilities |
|
15,061 |
|
|
|
22,098 |
|
Total Liabilities |
|
4,504,327 |
|
|
|
3,853,863 |
|
EQUITY |
|
|
|
||||
Preferred stock, par value
9,420,421 and 9,400,000 shares issued and outstanding, and |
|
227,432 |
|
|
|
226,939 |
|
Common stock, par value 59,662,263 and 57,458,169 shares issued and outstanding, respectively(3) |
|
60 |
|
|
|
58 |
|
Additional paid-in-capital |
|
1,199,958 |
|
|
|
1,161,603 |
|
Retained earnings (accumulated deficit) |
|
(133,370 |
) |
|
|
(97,279 |
) |
Total Stockholders' Equity |
|
1,294,080 |
|
|
|
1,291,321 |
|
Non-controlling interests |
|
28,858 |
|
|
|
32,235 |
|
Total Equity |
|
1,322,938 |
|
|
|
1,323,556 |
|
TOTAL LIABILITIES AND EQUITY |
$ |
5,827,265 |
|
|
$ |
5,177,419 |
|
SUPPLEMENTAL PER SHARE INFORMATION: |
|
|
|
||||
Book Value Per Common Share(4) |
$ |
17.74 |
|
|
$ |
18.39 |
|
(1) |
Derived from audited financial statements as of |
|
(2) |
Preferred shares issued and outstanding at |
|
(3) |
Common shares issued and outstanding at |
|
(4) | Based on total stockholders' equity less the aggregate liquidation preference of the Company's preferred stock outstanding. |
Reconciliation of Net Income (Loss) to Core Earnings
The Company calculates Core Earnings as
Core Earnings is a supplemental non-GAAP financial measure. The Company believes that the presentation of Core Earnings provides a consistent measure of operating performance by excluding the impact of gains and losses and other adjustments listed above from operating results. The Company believes that Core Earnings provides information useful to investors because it is a metric that the Company uses to assess its performance and to evaluate the effective net yield provided by its portfolio. In addition, the Company believes that presenting Core Earnings enables its investors to measure, evaluate, and compare its operating performance to that of its peers. However, because Core Earnings is an incomplete measure of the Company's financial results and differs from net income (loss) computed in accordance with
The following table reconciles, for the three-month periods ended
|
|
Three-Month Period Ended |
||||||
(In thousands, except per share amounts) |
|
|
|
|
||||
Net Income (Loss) |
|
$ |
(6,498 |
) |
|
$ |
38,850 |
|
Income tax expense (benefit) |
|
|
(6,960 |
) |
|
|
(4 |
) |
Net income (loss) before income tax expense |
|
|
(13,458 |
) |
|
|
38,846 |
|
Adjustments: |
|
|
|
|
||||
Realized (gains) losses on securities and loans, net |
|
|
(806 |
) |
|
|
3,609 |
|
Realized (gains) losses on financial derivatives, net |
|
|
(23,335 |
) |
|
|
(7,064 |
) |
Realized (gains) losses on real estate owned, net |
|
|
27 |
|
|
|
(1,774 |
) |
Unrealized (gains) losses on securities and loans, net |
|
|
151,153 |
|
|
|
35,809 |
|
Unrealized (gains) losses on financial derivatives, net |
|
|
(45,307 |
) |
|
|
(4,171 |
) |
Unrealized (gains) losses on real estate owned, net |
|
|
571 |
|
|
|
(176 |
) |
Unrealized (gains) losses on other secured borrowings, at fair value, net |
|
|
(55,641 |
) |
|
|
(10,899 |
) |
Other realized and unrealized (gains) losses, net(2) |
|
|
83 |
|
|
|
172 |
|
Net realized gains (losses) on periodic settlements of interest rate swaps |
|
|
(1,702 |
) |
|
|
(470 |
) |
Net unrealized gains (losses) on accrued periodic settlements of interest rate swaps |
|
|
561 |
|
|
|
(716 |
) |
Incentive fee to affiliate |
|
|
— |
|
|
|
3,246 |
|
Non-cash equity compensation expense |
|
|
288 |
|
|
|
254 |
|
Negative (positive) component of interest income represented by Catch-up Premium Amortization Adjustment |
|
|
634 |
|
|
|
(1,250 |
) |
Non-capitalized transaction costs and other expense adjustments |
|
|
6,337 |
|
|
|
2,762 |
|
(Earnings) losses from investments in unconsolidated entities(3) |
|
|
7,800 |
|
|
|
(28,563 |
) |
Total Core Earnings |
|
$ |
27,205 |
|
|
$ |
29,615 |
|
Dividends on preferred stock |
|
|
3,824 |
|
|
|
2,295 |
|
Core Earnings attributable to non-controlling interests |
|
|
175 |
|
|
|
2,421 |
|
Core Earnings Attributable to Common Stockholders |
|
$ |
23,206 |
|
|
$ |
24,899 |
|
Core Earnings Attributable to Common Stockholders, per share |
|
$ |
0.40 |
|
|
$ |
0.44 |
|
(1) | Conformed to current period presentation. |
|
(2) | Includes realized and unrealized gains (losses) on foreign currency included in Other, net, on the Condensed Consolidated Statement of Operations. |
|
(3) | Adjustment represents, for certain investments in unconsolidated entities, the net realized and unrealized gains and losses of the underlying investments of such entities. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220505006033/en/
Investors:
Investor Relations
(203) 409-3575
info@ellingtonfinancial.com
or
Media:
for
(212) 257-4170
Ellington@gasthalter.com
Source:
FAQ
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