Ellington Financial Inc. Reports First Quarter 2024 Results
Ellington Financial Inc. (NYSE: EFC) reported Q1 2024 results with net income of $26.9 million, or $0.32 per share, driven by credit strategy, Longbridge, and Agency strategy. Adjusted Distributable Earnings of $23.7 million. Book value per share was $13.69. Recourse debt-to-equity ratio of 1.8:1. Cash of $187.5 million. Dividend yield of 13.3%. Strong performance in non-QM loans, secondary CLO, CMBS, and non-Agency RMBS portfolios. Completed inaugural securitization of proprietary reverse mortgage loans. Quarterly results driven by expanding RTL portfolio, CLO purchases, commercial mortgage bridge loan growth. Non-QM securitization completed with significant gains. Focus on higher-yielding strategies, origination profits at Longbridge, and managing sub-performing loans.
Net income of $26.9 million, or $0.32 per share, driven by credit strategy, Longbridge, and Agency strategy.
Adjusted Distributable Earnings of $23.7 million.
Book value per share was $13.69.
Strong performance in non-QM loans, secondary CLO, CMBS, and non-Agency RMBS portfolios.
Completed inaugural securitization of proprietary reverse mortgage loans.
Focus on higher-yielding strategies, origination profits at Longbridge, and managing sub-performing loans.
Net loss on certain commercial non-performing mortgage loans and REO.
Uptick in delinquencies in residential and commercial mortgage loan portfolios.
Net losses on proprietary loans at Longbridge.
Net loss on Great Ajax common shares from terminated merger.
Net income weighed down by non-accrual loans and REO expenses.
Insights
Ellington Financial Inc.'s reported net income of $26.9 million reflects a solid quarter, which is directly tied to its diversified investment strategies. The net income from the credit strategy particularly stands out at $40.9 million, indicative of savvy asset management within the current economic context. A noteworthy element is the company’s increasing net interest margin to 2.86% from 2.66%, likely benefiting from higher asset yields.
From a shareholder’s perspective, the book value per share at $13.69, when coupled with a dividend yield of 13.3%, presents an attractive proposition, especially considering the ongoing monthly dividend declaration. However, investors should be cautious about the recourse debt-to-equity ratio of 1.8:1, which, while adjusted down from the previous quarter, still requires analysis of the company's leverage versus the industry standard to understand the associated risk profile.
The company's focus on deploying uninvested capital and the successful completion of their inaugural securitization of proprietary reverse mortgage loans signal strategic use of financial engineering to strengthen their financing structure. The ability to capitalize on non-QM securitization amidst tight yield spreads also hints at an adept management team that is optimizing market conditions to benefit the bottom line.
Ellington Financial's expansion of its residential transition loan (RTL) portfolio and its opportunistic CLO purchases reflect a strategic maneuver within the real estate investment domain, showing an active response to market demands and valuation realism from borrowers. The company's commercial mortgage bridge loan portfolio growth and the strong origination flow from affiliate Sheridan indicate a recovering responsiveness in the CRE lending space.
As Longbridge achieved improved gain-on-sale margins and executed its first securitization of proprietary reverse mortgage loans, it underscores Ellington Financial’s capabilities in securitization and servicing—key areas for investors to monitor due to their potential impact on future earnings. The quarterly report suggests that the company is not only maintaining a diversified approach to real estate financing but actively capitalizing on market inefficiencies to bolster their income streams.
The favorable results from Ellington Financial's secondary CLO, CMBS and non-Agency RMBS portfolios can be interpreted as a successful navigation of the fixed income markets. Their quarterly results show a balance between risk and return, with the company strategically culling lower-yielding securities to free up capital for higher yielding opportunities. This indicates a proactive management of their asset portfolio in alignment with market conditions.
Given the company’s adaptation to interest rate hikes through positive carry on interest rate swap hedges, investors should note the company’s efforts to hedge against market volatility. The increased delinquencies in residential and commercial mortgage loan portfolios warrant attention, but the company's proactive stance on workout strategies for non-performing assets may offer some reassurance. Moving forward, keeping an eye on such credit performance indicators will be critical.
Highlights
-
Net income attributable to common stockholders of
$26.9 million $0.32 -
$43.0 million $0.51 -
$40.9 million $0.48 -
$2.1 million $0.03
-
-
$8.7 million $0.10
-
-
Adjusted Distributable Earnings2 of
$23.7 million $0.28 -
Book value per common share as of March 31, 2024 of
$13.69 $0.43 -
Dividend yield of
13.3% based on the May 6, 2024 closing stock price of$11.71 $0.13 - Recourse debt-to-equity ratio3 of 1.8:1 as of March 31, 2024, adjusted for unsettled purchases and sales. Including all non-recourse borrowings, which primarily consist of securitization-related liabilities, debt-to-equity ratio of 8.3:14.
-
Cash and cash equivalents of
$187.5 million $544.5 million
First Quarter 2024 Results
"Steady performance from our non-QM and residential transition loan businesses, together with strong returns from our secondary CLO, CMBS, and non-Agency RMBS portfolios, drove Ellington Financial's first quarter results," said Laurence Penn, Chief Executive Officer and President.
"We continue to focus on deploying the uninvested capital we held at year end following the closing of the Arlington merger. Our credit portfolio grew sequentially during the first quarter, driven by an expanding RTL portfolio and opportunistic CLO purchases. We also grew our commercial mortgage bridge loan portfolio, after five consecutive quarters of payoffs exceeding new originations in that portfolio. With borrowers finally more realistic about commercial real estate property valuations, we are seeing strong origination flow from our affiliate Sheridan, which has also sourced two NPLs for us so far in 2024.
"We also achieved some key portfolio objectives during the quarter. First, we successfully completed our inaugural securitization of proprietary reverse mortgage loans from Longbridge, thereby converting repo financing into term, non-mark-to-market financing at attractive terms. We expect that this securitization marks the beginning of an ongoing program for our proprietary reverse mortgage business, similar to the program we have established in our non-QM businesses. Second, we continued to cull lower-yielding securities from our portfolio, selling Agency and non-Agency RMBS and CMBS in order to free up capital for higher yielding opportunities. The culling of these securities, which are generally financed with higher leverage, drove down our overall leverage ratios, despite the capital deployment mentioned above.
"Following quarter-end, we completed our first non-QM securitization of the year, taking advantage of the tightest yield spreads we've seen in the past two years, and booking a significant gain as a result.
"We continue to work hard to get more fully invested in our higher-yielding strategies, drive origination profits at Longbridge, and work through the few sub-performing loans in our commercial bridge loan portfolio, as we build back up Adjusted Distributable Earnings. We continue to be patient on deployment, balancing the dual goals of growing earnings in the near term while preserving dry powder to capitalize on opportunistic situations as they arise."
Financial Results
Investment Portfolio Summary
Our investment portfolio generated net income attributable to common stockholders of
Credit Performance
Our total long credit portfolio, excluding non-retained tranches of consolidated non-QM securitization trusts, increased to
Strong net interest income5 and net gains on non-Agency RMBS, interest rate hedges, and investments in loan originators drove the positive results in the credit strategy in the first quarter. These gains were partially offset by net losses on credit hedges, negative operating income on certain commercial non-performing mortgage loans and REO, and net losses on residential REO liquidations. We also had a net loss on the Great Ajax common shares we had purchased in connection with last year's terminated merger, which was partially offset by a net gain on the fixed payer interest rate swap hedges that we hold against those shares.
In addition, we saw a further uptick in delinquencies in our residential and commercial mortgage loan portfolios, and while those portfolios continue to experience low levels of realized credit losses and strong overall credit performance, we are monitoring developments closely and diligently working out a handful of non-performing commercial mortgage assets. Loans in non-accrual status, as well as negative operating income on certain REOs, continued to weigh on our Adjusted Distributable Earnings during the quarter.
During the quarter, the net interest margin6 on our credit portfolio increased to
Agency Performance
Our total long Agency RMBS portfolio decreased by
Despite lower interest rate volatility during the quarter, Agency RMBS lagged a broader rally in credit as market consensus for the timing of the first Federal Reserve rate cut was pushed back. This drove interest rates higher across the yield curve and pressured yield spreads on Agency RMBS, particularly in February and particularly for lower coupons. While Agency yield spreads did recover meaningfully in March, driven by lower volatility and capital inflows, overall for the quarter Agency RMBS generated a modestly negative excess return to
Average pay-ups on our specified pools increased to
During the quarter, the asset yields on our Agency RMBS increased while our borrowing costs were roughly unchanged. At the same time, we continued to benefit from positive carry on our interest rate swap hedges, where we overall receive a higher floating rate and pay a lower fixed rate, and the impact of this benefit increased quarter over quarter. As a result, the net interest margin5 on our Agency RMBS, excluding the Catch-up Amortization Adjustment, increased to
Longbridge Summary
Our Longbridge portfolio generated net income attributable to common stockholders of
Our Longbridge portfolio, excluding non-retained tranches of a consolidated securitization trust, decreased by
Corporate/Other Summary
Our results for the quarter also reflect a net loss, driven by the increase in interest rates, on the fixed receiver interest rate swaps that we use to hedge the fixed payments on both our unsecured long-term debt and our preferred equity, partially offset by a net gain on our senior notes, also driven by the increase in interest rates.
| ____________________ | ||||
1 |
Includes |
|||
2 |
Adjusted Distributable Earnings is a non-GAAP financial measure. See "Reconciliation of Net Income (Loss) to Adjusted Distributable Earnings" below for an explanation regarding the calculation of Adjusted Distributable Earnings. |
|||
3 |
Excludes |
|||
4 |
Excludes |
|||
5 |
Excludes any interest income and interest expense items from interest rate hedges, net credit hedges and other activities, net. |
|||
6 |
Net interest margin represents the weighted average asset yield less the weighted average secured financing cost of funds on such assets. It also includes the effect of actual and accrued periodic payments on interest rate swaps used to hedge the assets. |
|||
7 |
HMBS assets are consolidated for GAAP reporting purposes, and HMBS-related obligations are accounted for on the balance sheet as secured borrowings. The fair value of HMBS assets less the fair value of the HMBS-related obligations approximate fair value of the HMBS MSR Equivalent. |
|||
Credit Portfolio(1)
The following table summarizes our credit portfolio holdings as of March 31, 2024 and December 31, 2023:
|
|
March 31, 2024 |
|
December 31, 2023 |
||||||||
($ in thousands) |
|
Fair Value |
|
% |
|
Fair Value |
|
% |
||||
Dollar denominated: |
|
|
|
|
|
|
|
|
||||
CLOs(2) |
|
$ |
59,243 |
|
1.4 |
% |
|
$ |
33,920 |
|
0.8 |
% |
CMBS |
|
|
22,393 |
|
0.5 |
% |
|
|
45,432 |
|
1.1 |
% |
Commercial mortgage loans and REO(3)(4) |
|
|
366,320 |
|
8.7 |
% |
|
|
330,296 |
|
7.9 |
% |
Consumer loans and ABS backed by consumer loans(2) |
|
|
83,194 |
|
2.0 |
% |
|
|
83,130 |
|
2.0 |
% |
Other loans and ABS(5) |
|
|
19,674 |
|
0.5 |
% |
|
|
10,314 |
|
0.3 |
% |
Corporate debt and equity and corporate loans |
|
|
31,140 |
|
0.8 |
% |
|
|
29,720 |
|
0.7 |
% |
Debt and equity investments in loan origination-related entities(6) |
|
|
35,967 |
|
0.9 |
% |
|
|
38,528 |
|
0.9 |
% |
Non-Agency RMBS |
|
|
210,132 |
|
5.0 |
% |
|
|
253,522 |
|
6.1 |
% |
Non-QM loans and retained non-QM RMBS(7) |
|
|
1,989,390 |
|
47.3 |
% |
|
|
2,037,914 |
|
48.9 |
% |
Residential transition loans and other residential mortgage loans and REO(3) |
|
|
1,199,246 |
|
28.5 |
% |
|
|
1,113,816 |
|
26.8 |
% |
Forward MSR-related investments |
|
|
160,009 |
|
3.8 |
% |
|
|
163,336 |
|
3.9 |
% |
Non-Dollar denominated: |
|
|
|
|
|
|
|
|
||||
CLOs(2) |
|
|
5,496 |
|
0.1 |
% |
|
|
4,234 |
|
0.1 |
% |
Corporate debt and equity |
|
|
185 |
|
— |
% |
|
|
189 |
|
— |
% |
RMBS(8) |
|
|
20,423 |
|
0.5 |
% |
|
|
19,674 |
|
0.5 |
% |
Total long credit portfolio |
|
$ |
4,202,812 |
|
100.0 |
% |
|
$ |
4,164,025 |
|
100.0 |
% |
Less: Non-retained tranches of consolidated securitization trusts |
|
|
1,407,035 |
|
|
|
|
1,424,804 |
|
|
||
Total long credit portfolio excluding non-retained tranches of consolidated securitization trusts |
|
$ |
2,795,777 |
|
|
|
$ |
2,739,221 |
|
|
||
(1) |
This information does not include |
|
(2) |
Includes equity investments in securitization-related vehicles. |
|
(3) |
In accordance with |
|
(4) |
Includes equity investments in unconsolidated entities holding commercial mortgage loans and REO. |
|
(5) |
Includes equity investment in an unconsolidated entity which purchases certain other loans for eventual securitization. |
|
(6) |
Includes corporate loans to certain loan origination entities in which we hold an equity investment. |
|
(7) |
Retained non-QM RMBS represents RMBS issued by non-consolidated Ellington-sponsored non-QM loan securitization trusts, and interests in entities holding such RMBS. |
|
(8) |
Includes an equity investment in an unconsolidated entity holding European RMBS. |
Agency RMBS Portfolio
The following table(1) summarizes our Agency RMBS portfolio holdings as of March 31, 2024 and December 31, 2023:
|
|
March 31, 2024 |
|
December 31, 2023 |
||||||||
($ in thousands) |
|
Fair Value |
|
% |
|
Fair Value |
|
% |
||||
Long Agency RMBS: |
|
|
|
|
|
|
|
|
||||
Fixed rate |
|
$ |
609,806 |
|
92.0 |
% |
|
$ |
798,211 |
|
93.5 |
% |
Floating rate |
|
|
5,043 |
|
0.8 |
% |
|
|
5,130 |
|
0.6 |
% |
Reverse mortgages |
|
|
36,912 |
|
5.6 |
% |
|
|
37,171 |
|
4.4 |
% |
IOs |
|
|
10,811 |
|
1.6 |
% |
|
|
12,712 |
|
1.5 |
% |
Total long Agency RMBS |
|
$ |
662,572 |
|
100.0 |
% |
|
$ |
853,224 |
|
100.0 |
% |
(1) |
This information does not include |
Longbridge Portfolio
Longbridge originates reverse mortgage loans, including home equity conversion mortgage loans, or "HECMs," which are insured by the FHA and which are eligible for inclusion in GNMA-guaranteed HECM-backed MBS, or "HMBS." Upon securitization, the HECMs remain on our balance sheet under GAAP, and Longbridge retains the mortgage servicing rights associated with the HMBS, or the "HMBS MSR Equivalent." Longbridge also originates "proprietary reverse mortgage loans," which are not insured by the FHA, and Longbridge has typically retained the associated MSRs. We have securitized some of the proprietary reverse mortgage loans originated by Longbridge, and we have retained certain of the securitization tranches in compliance with credit risk retention rules. The following table(1) summarizes loan-related assets in the Longbridge segment as of March 31, 2024 and December 31, 2023:
|
|
March 31, 2024 |
|
December 31, 2023 |
||||
|
|
(In thousands) |
||||||
HMBS assets(2) |
|
$ |
8,713,835 |
|
|
$ |
8,511,682 |
|
Less: HMBS liabilities |
|
|
(8,619,463 |
) |
|
|
(8,423,235 |
) |
HMBS MSR Equivalent |
|
|
94,372 |
|
|
|
88,447 |
|
Unsecuritized HECM loans(3) |
|
|
111,617 |
|
|
|
102,553 |
|
Proprietary reverse mortgage loans(4) |
|
|
365,372 |
|
|
|
329,575 |
|
Reverse MSRs |
|
|
29,889 |
|
|
|
29,580 |
|
Unsecuritized REO |
|
|
2,228 |
|
|
|
2,219 |
|
Total |
|
|
603,478 |
|
|
|
552,374 |
|
Less: Non-retained tranches of consolidated securitization trust |
|
|
(162,482 |
) |
|
|
— |
|
Total, excluding non-retained tranches of consolidated securitization trust |
|
$ |
440,996 |
|
|
$ |
552,374 |
|
(1) |
This information does not include financial derivatives or loan commitments. |
|
(2) |
Includes HECM loans, related REO, and claims or other receivables. |
|
(3) |
As of March 31, 2024, includes |
|
(4) |
Includes |
The following table summarizes Longbridge's origination volumes by channel for the three-month periods ended March 31, 2024 and December 31, 2023:
($ In thousands) |
|
March 31, 2024 |
|
December 31, 2023 |
||||||||||||
Channel |
|
Units |
|
New Loan
|
|
% of New
|
|
Units |
|
New Loan
|
|
% of New
|
||||
Retail |
|
381 |
|
$ |
51,639 |
|
25 |
% |
|
363 |
|
$ |
47,868 |
|
18 |
% |
Wholesale and correspondent |
|
983 |
|
|
153,246 |
|
75 |
% |
|
1,223 |
|
|
214,314 |
|
82 |
% |
Total |
|
1,364 |
|
$ |
204,885 |
|
100 |
% |
|
1,586 |
|
$ |
262,182 |
|
100 |
% |
(1) |
Represents initial borrowed amounts on reverse mortgage loans. |
Financing
Our recourse debt-to-equity ratio3 decreased to 1.8:1 at March 31, 2024 from 2.0:1 at December 31, 2023. The decline was primarily driven by an increase in shareholders' equity, a decline in borrowings on our smaller Agency RMBS portfolio, and a decrease in recourse borrowings related to the securitization of proprietary reverse mortgage loans in March; such securitization financing is consolidated non-recourse debt. Our overall debt-to-equity ratio4 also decreased during the quarter, to 8.3:1 as of March 31, 2024, as compared to 8.4:1 as of December 31, 2023.
The following table summarizes our outstanding borrowings and debt-to-equity ratios as of March 31, 2024 and December 31, 2023:
|
|
March 31, 2024 |
|
December 31, 2023 |
||||||
|
|
Outstanding
|
|
Debt-to-
|
|
Outstanding
|
|
Debt-to-
|
||
|
|
(In thousands) |
|
|
|
(In thousands) |
|
|
||
Recourse borrowings(3)(4) |
|
$ |
2,996,346 |
|
1.9:1 |
|
$ |
3,510,945 |
|
2.3:1 |
Non-recourse borrowings(4) |
|
|
10,188,612 |
|
6.6:1 |
|
|
9,847,903 |
|
6.4:1 |
Total Borrowings |
|
$ |
13,184,958 |
|
8.5:1 |
|
$ |
13,358,848 |
|
8.7:1 |
Total Equity |
|
$ |
1,553,156 |
|
|
|
$ |
1,535,612 |
|
|
Recourse borrowings excluding |
|
|
|
1.8:1 |
|
|
|
2.0:1 |
||
Total borrowings excluding |
|
|
|
8.3:1 |
|
|
|
8.4:1 |
||
(1) |
Includes borrowings under repurchase agreements, other secured borrowings, other secured borrowings, at fair value, and unsecured debt, at par. |
|
(2) |
Recourse and overall debt-to-equity ratios are computed by dividing outstanding recourse and overall borrowings, respectively, by total equity. Debt-to-equity ratios do not account for liabilities other than debt financings. |
|
(3) |
Excludes repo borrowings at certain unconsolidated entities that are recourse to us. Including such borrowings, our debt-to-equity ratio based on total recourse borrowings is 2.0:1 and 2.4:1 as of March 31, 2024 and December 31, 2023, respectively. |
|
(4) |
All of our 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 us or our 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 our operating results by strategy for the three-month period ended March 31, 2024:
|
|
Investment Portfolio |
|
Longbridge |
|
Corporate/
|
|
Total |
|
Per
|
||||||||||||||||||
(In thousands except per share amounts) |
|
Credit |
|
Agency |
|
Investment
|
|
|
|
|
||||||||||||||||||
Interest income and other income (1) |
|
$ |
84,269 |
|
|
$ |
7,069 |
|
|
$ |
91,338 |
|
|
$ |
12,132 |
|
|
$ |
1,877 |
|
|
$ |
105,347 |
|
|
$ |
1.24 |
|
Interest expense |
|
|
(43,121 |
) |
|
|
(9,763 |
) |
|
|
(52,884 |
) |
|
|
(8,558 |
) |
|
|
(4,597 |
) |
|
|
(66,039 |
) |
|
|
(0.77 |
) |
Realized gain (loss), net |
|
|
(6,379 |
) |
|
|
(12,154 |
) |
|
|
(18,533 |
) |
|
|
— |
|
|
|
— |
|
|
|
(18,533 |
) |
|
|
(0.22 |
) |
Unrealized gain (loss), net |
|
|
3,466 |
|
|
|
797 |
|
|
|
4,263 |
|
|
|
(8,356 |
) |
|
|
1,829 |
|
|
|
(2,264 |
) |
|
|
(0.03 |
) |
Net change from reverse mortgage loans and HMBS obligations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
27,515 |
|
|
|
— |
|
|
|
27,515 |
|
|
|
0.32 |
|
Earnings in unconsolidated entities |
|
|
2,226 |
|
|
|
— |
|
|
|
2,226 |
|
|
|
— |
|
|
|
— |
|
|
|
2,226 |
|
|
|
0.03 |
|
Interest rate hedges and other activity, net(2) |
|
|
8,259 |
|
|
|
16,123 |
|
|
|
24,382 |
|
|
|
15,712 |
|
|
|
(5,538 |
) |
|
|
34,556 |
|
|
|
0.41 |
|
Credit hedges and other activities, net(3) |
|
|
(4,449 |
) |
|
|
— |
|
|
|
(4,449 |
) |
|
|
(592 |
) |
|
|
— |
|
|
|
(5,041 |
) |
|
|
(0.06 |
) |
Income tax (expense) benefit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(61 |
) |
|
|
(61 |
) |
|
|
— |
|
Investment related expenses |
|
|
(2,973 |
) |
|
|
— |
|
|
|
(2,973 |
) |
|
|
(10,263 |
) |
|
|
— |
|
|
|
(13,236 |
) |
|
|
(0.16 |
) |
Other expenses |
|
|
(170 |
) |
|
|
— |
|
|
|
(170 |
) |
|
|
(18,836 |
) |
|
|
(11,413 |
) |
|
|
(30,419 |
) |
|
|
(0.36 |
) |
Net income (loss) |
|
|
41,128 |
|
|
|
2,072 |
|
|
|
43,200 |
|
|
|
8,754 |
|
|
|
(17,903 |
) |
|
|
34,051 |
|
|
|
0.40 |
|
Dividends on preferred stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,654 |
) |
|
|
(6,654 |
) |
|
|
(0.08 |
) |
Net (income) loss attributable to non-participating non-controlling interests |
|
|
(185 |
) |
|
|
— |
|
|
|
(185 |
) |
|
|
(38 |
) |
|
|
(4 |
) |
|
|
(227 |
) |
|
|
— |
|
Net income (loss) attributable to common stockholders and participating non-controlling interests |
|
|
40,943 |
|
|
|
2,072 |
|
|
|
43,015 |
|
|
|
8,716 |
|
|
|
(24,561 |
) |
|
|
27,170 |
|
|
|
0.32 |
|
Net (income) loss attributable to participating non-controlling interests |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(255 |
) |
|
|
(255 |
) |
|
|
— |
|
Net income (loss) attributable to common stockholders |
|
$ |
40,943 |
|
|
$ |
2,072 |
|
|
$ |
43,015 |
|
|
$ |
8,716 |
|
|
$ |
(24,816 |
) |
|
$ |
26,915 |
|
|
$ |
0.32 |
|
Net income (loss) attributable to common stockholders per share of common stock |
|
$ |
0.48 |
|
|
$ |
0.03 |
|
|
$ |
0.51 |
|
|
$ |
0.10 |
|
|
$ |
(0.29 |
) |
|
$ |
0.32 |
|
|
|
||
Weighted average shares of common stock and convertible units(4) outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
85,269 |
|
|
|
||||||||||||
Weighted average shares of common stock outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
84,468 |
|
|
|
||||||||||||
(1) |
Other income primarily consists of rental income on real estate owned, loan origination fees, and servicing income. |
|
(2) |
Includes |
|
(3) |
Other activities include certain equity and other trading strategies and related hedges, and net realized and unrealized gains (losses) on foreign currency. |
|
(4) |
Convertible units include Operating Partnership units attributable to participating non-controlling interests. |
The following table summarizes our operating results by strategy for the three-month period ended December 31, 2023:
|
|
Investment Portfolio |
|
Longbridge |
|
Corporate/
|
|
Total |
|
Per
|
||||||||||||||||||
(In thousands except per share amounts) |
|
Credit |
|
Agency |
|
Investment
|
|
|
|
|
||||||||||||||||||
Interest income and other income (1) |
|
$ |
74,769 |
|
|
$ |
11,580 |
|
|
$ |
86,349 |
|
|
$ |
10,930 |
|
|
$ |
1,996 |
|
|
$ |
99,275 |
|
|
$ |
1.38 |
|
Interest expense |
|
|
(43,503 |
) |
|
|
(12,923 |
) |
|
|
(56,426 |
) |
|
|
(7,819 |
) |
|
|
(3,454 |
) |
|
|
(67,699 |
) |
|
|
(0.94 |
) |
Realized gain (loss), net(2) |
|
|
(19,064 |
) |
|
|
(11,075 |
) |
|
|
(30,139 |
) |
|
|
(27 |
) |
|
|
28,175 |
|
|
|
(1,991 |
) |
|
|
(0.03 |
) |
Unrealized gain (loss), net |
|
|
28,364 |
|
|
|
57,043 |
|
|
|
85,407 |
|
|
|
15,661 |
|
|
|
(5,604 |
) |
|
|
95,464 |
|
|
|
1.32 |
|
Net change from reverse mortgage loans and HMBS obligations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
28,903 |
|
|
|
— |
|
|
|
28,903 |
|
|
|
0.40 |
|
Earnings in unconsolidated entities |
|
|
2,547 |
|
|
|
— |
|
|
|
2,547 |
|
|
|
— |
|
|
|
— |
|
|
|
2,547 |
|
|
|
0.04 |
|
Interest rate hedges and other activity, net(3) |
|
|
(20,238 |
) |
|
|
(30,067 |
) |
|
|
(50,305 |
) |
|
|
(25,684 |
) |
|
|
9,730 |
|
|
|
(66,259 |
) |
|
|
(0.92 |
) |
Credit hedges and other activities, net(4) |
|
|
(4,525 |
) |
|
|
— |
|
|
|
(4,525 |
) |
|
|
— |
|
|
|
1,463 |
|
|
|
(3,062 |
) |
|
|
(0.04 |
) |
Income tax (expense) benefit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(129 |
) |
|
|
(129 |
) |
|
|
— |
|
Investment related expenses |
|
|
(3,169 |
) |
|
|
— |
|
|
|
(3,169 |
) |
|
|
(6,386 |
) |
|
|
— |
|
|
|
(9,555 |
) |
|
|
(0.13 |
) |
Other expenses(5) |
|
|
(1,877 |
) |
|
|
— |
|
|
|
(1,877 |
) |
|
|
(18,940 |
) |
|
|
(37,352 |
) |
|
|
(58,169 |
) |
|
|
(0.81 |
) |
Net income (loss) |
|
|
13,304 |
|
|
|
14,558 |
|
|
|
27,862 |
|
|
|
(3,362 |
) |
|
|
(5,175 |
) |
|
|
19,325 |
|
|
|
0.27 |
|
Dividends on preferred stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,104 |
) |
|
|
(6,104 |
) |
|
|
(0.08 |
) |
Net (income) loss attributable to non-participating non-controlling interests |
|
|
(586 |
) |
|
|
— |
|
|
|
(586 |
) |
|
|
6 |
|
|
|
(5 |
) |
|
|
(585 |
) |
|
|
(0.01 |
) |
Net income (loss) attributable to common stockholders and participating non-controlling interests |
|
|
12,718 |
|
|
|
14,558 |
|
|
|
27,276 |
|
|
|
(3,356 |
) |
|
|
(11,284 |
) |
|
|
12,636 |
|
|
|
0.18 |
|
Net (income) loss attributable to participating non-controlling interests |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(139 |
) |
|
|
(139 |
) |
|
|
— |
|
Net income (loss) attributable to common stockholders |
|
$ |
12,718 |
|
|
$ |
14,558 |
|
|
$ |
27,276 |
|
|
$ |
(3,356 |
) |
|
$ |
(11,423 |
) |
|
$ |
12,497 |
|
|
$ |
0.18 |
|
Net income (loss) attributable to common stockholders per share of common stock |
|
$ |
0.18 |
|
|
$ |
0.20 |
|
|
$ |
0.38 |
|
|
$ |
(0.04 |
) |
|
$ |
(0.16 |
) |
|
$ |
0.18 |
|
|
|
||
Weighted average shares of common stock and convertible units(6) outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
72,136 |
|
|
|
||||||||||||
Weighted average shares of common stock outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
71,338 |
|
|
|
||||||||||||
(1) |
Other income primarily consists of rental income on real estate owned, loan origination fees, and servicing income. |
|
(2) |
In Corporate/Other, represents the |
|
(3) |
Includes |
|
(4) |
Other activities include certain equity and other trading strategies and related hedges, and net realized and unrealized gains (losses) on foreign currency. |
|
(5) |
In Corporate/Other, includes Arlington merger-related expenses of |
|
(6) |
Convertible units include Operating Partnership units attributable to participating non-controlling interests. |
About Ellington Financial
Ellington Financial invests in a diverse array of financial assets, including residential and commercial mortgage loans and mortgage-backed securities, reverse mortgage loans, mortgage servicing rights and related investments, consumer loans, asset-backed securities, 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.
Conference Call
We will host a conference call at 11:00 a.m. Eastern Time on Wednesday, May 8, 2024, to discuss our financial results for the quarter ended March 31, 2024. To participate in the event by telephone, please dial (800) 343-5419 at least 10 minutes prior to the start time and reference the conference ID EFCQ124. International callers should dial (203) 518-9731 and reference the same conference ID. The conference call will also be webcast live over the Internet and can be accessed via the "For Investors" section of our web site at www.ellingtonfinancial.com. To listen to the live webcast, please visit www.ellingtonfinancial.com at least 15 minutes prior to the start of the call to register, download, and install necessary audio software. In connection with the release of these financial results, we also posted an investor presentation, that will accompany the conference call, on our website at www.ellingtonfinancial.com under "For Investors—Presentations."
A dial-in replay of the conference call will be available on Wednesday, May 8, 2024, at approximately 2:00 p.m. Eastern Time through Wednesday, May 15, 2024 at approximately 11:59 p.m. Eastern Time. To access this replay, please dial (888) 562-0902. International callers should dial (402) 220-7344. A replay of the conference call will also be archived on our web site at www.ellingtonfinancial.com.
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. Our actual results may differ from our 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 our investments, market volatility, changes in mortgage default rates and prepayment rates, our ability to borrow to finance our assets, changes in government regulations affecting our business, our ability achieve the cost savings and efficiencies, operating efficiencies, synergies and other benefits, including the increased scale, and avoid potential business disruption from our recently completed merger with Arlington Asset Investment Corp., our ability to maintain our exclusion from registration under the Investment Company Act of 1940, our ability to maintain our 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 our Annual Report on Form 10-K, which can be accessed through our 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 we file with the SEC, including reports on Forms 10-Q, 10-K and 8-K. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
ELLINGTON FINANCIAL INC. |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||
(UNAUDITED) |
|||||||
|
Three-Month Period Ended |
||||||
|
March 31, 2024 |
|
December 31, 2023 |
||||
(In thousands, except per share amounts) |
|
|
|
||||
NET INTEREST INCOME |
|
|
|
||||
Interest income |
$ |
101,520 |
|
|
$ |
98,690 |
|
Interest expense |
|
(70,464 |
) |
|
|
(70,699 |
) |
Total net interest income |
|
31,056 |
|
|
|
27,991 |
|
Other Income (Loss) |
|
|
|
||||
Realized gains (losses) on securities and loans, net |
|
(17,208 |
) |
|
|
(22,475 |
) |
Realized gains (losses) on financial derivatives, net |
|
3,478 |
|
|
|
9,437 |
|
Realized gains (losses) on real estate owned, net |
|
(1,372 |
) |
|
|
(3,773 |
) |
Unrealized gains (losses) on securities and loans, net |
|
5,573 |
|
|
|
147,273 |
|
Unrealized gains (losses) on financial derivatives, net |
|
30,365 |
|
|
|
(81,957 |
) |
Unrealized gains (losses) on real estate owned, net |
|
(679 |
) |
|
|
2,710 |
|
Unrealized gains (losses) on other secured borrowings, at fair value, net |
|
(12,524 |
) |
|
|
(52,687 |
) |
Unrealized gains (losses) on unsecured borrowings, at fair value |
|
1,829 |
|
|
|
(1,954 |
) |
Net change from reverse mortgage loans, at fair value |
|
205,497 |
|
|
|
208,661 |
|
Net change related to HMBS obligations, at fair value |
|
(177,982 |
) |
|
|
(179,758 |
) |
Bargain purchase gain |
|
— |
|
|
|
28,175 |
|
Other, net |
|
7,508 |
|
|
|
2,988 |
|
Total other income (loss) |
|
44,485 |
|
|
|
56,640 |
|
EXPENSES |
|
|
|
||||
Base management fee to affiliate, net of rebates |
|
5,730 |
|
|
|
5,660 |
|
Investment related expenses: |
|
|
|
||||
Servicing expense |
|
5,688 |
|
|
|
5,328 |
|
Debt issuance costs related to Other secured borrowings, at fair value |
|
3,113 |
|
|
|
— |
|
Other |
|
4,435 |
|
|
|
4,227 |
|
Professional fees |
|
2,970 |
|
|
|
7,411 |
|
Compensation and benefits |
|
14,643 |
|
|
|
33,173 |
|
Other expenses |
|
7,076 |
|
|
|
11,925 |
|
Total expenses |
|
43,655 |
|
|
|
67,724 |
|
Net Income (Loss) before Income Tax Expense (Benefit) and Earnings from Investments in Unconsolidated Entities |
|
31,886 |
|
|
|
16,907 |
|
Income tax expense (benefit) |
|
61 |
|
|
|
129 |
|
Earnings (losses) from investments in unconsolidated entities |
|
2,226 |
|
|
|
2,547 |
|
Net Income (Loss) |
|
34,051 |
|
|
|
19,325 |
|
Net Income (Loss) attributable to non-controlling interests |
|
482 |
|
|
|
724 |
|
Dividends on preferred stock |
|
6,654 |
|
|
|
6,104 |
|
Net Income (Loss) Attributable to Common Stockholders |
$ |
26,915 |
|
|
$ |
12,497 |
|
Net Income (Loss) per Common Share: |
|
|
|
||||
Basic and Diluted |
$ |
0.32 |
|
|
$ |
0.18 |
|
Weighted average shares of common stock outstanding |
|
84,468 |
|
|
|
71,338 |
|
Weighted average shares of common stock and convertible units outstanding |
|
85,269 |
|
|
|
72,136 |
|
ELLINGTON FINANCIAL INC. |
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(UNAUDITED) |
|||||||
|
As of |
||||||
(In thousands, except share and per share amounts) |
March 31, 2024 |
|
December 31, 2023(1) |
||||
ASSETS |
|
|
|
||||
Cash and cash equivalents |
$ |
187,467 |
|
|
$ |
228,927 |
|
Restricted cash |
|
6,343 |
|
|
|
1,618 |
|
Securities, at fair value |
|
1,328,848 |
|
|
|
1,518,377 |
|
Loans, at fair value |
|
12,644,232 |
|
|
|
12,306,636 |
|
Loan commitments, at fair value |
|
3,917 |
|
|
|
2,584 |
|
Forward MSR-related investments, at fair value |
|
160,009 |
|
|
|
163,336 |
|
Mortgage servicing rights, at fair value |
|
29,889 |
|
|
|
29,580 |
|
Investments in unconsolidated entities, at fair value |
|
125,366 |
|
|
|
116,414 |
|
Real estate owned |
|
19,999 |
|
|
|
22,085 |
|
Financial derivatives–assets, at fair value |
|
150,343 |
|
|
|
143,996 |
|
Reverse repurchase agreements |
|
183,607 |
|
|
|
173,145 |
|
Due from brokers |
|
17,099 |
|
|
|
51,884 |
|
Investment related receivables |
|
200,059 |
|
|
|
480,249 |
|
Other assets |
|
75,422 |
|
|
|
77,099 |
|
Total Assets |
$ |
15,132,600 |
|
|
$ |
15,315,930 |
|
LIABILITIES |
|
|
|
||||
Securities sold short, at fair value |
$ |
165,118 |
|
|
$ |
154,303 |
|
Repurchase agreements |
|
2,517,747 |
|
|
|
2,967,437 |
|
Financial derivatives–liabilities, at fair value |
|
40,425 |
|
|
|
61,776 |
|
Due to brokers |
|
62,646 |
|
|
|
62,442 |
|
Investment related payables |
|
32,329 |
|
|
|
37,403 |
|
Other secured borrowings |
|
180,918 |
|
|
|
245,827 |
|
Other secured borrowings, at fair value |
|
1,569,149 |
|
|
|
1,424,668 |
|
HMBS-related obligations, at fair value |
|
8,619,463 |
|
|
|
8,423,235 |
|
Unsecured borrowings, at fair value |
|
270,936 |
|
|
|
272,765 |
|
Base management fee payable to affiliate |
|
5,730 |
|
|
|
5,660 |
|
Dividend payable |
|
15,168 |
|
|
|
11,528 |
|
Interest payable |
|
25,177 |
|
|
|
22,933 |
|
Accrued expenses and other liabilities |
|
74,638 |
|
|
|
90,341 |
|
Total Liabilities |
|
13,579,444 |
|
|
|
13,780,318 |
|
EQUITY |
|
|
|
||||
Preferred stock, par value |
|
355,551 |
|
|
|
355,551 |
|
Common stock, par value |
|
85 |
|
|
|
83 |
|
Additional paid-in-capital |
|
1,540,857 |
|
|
|
1,514,797 |
|
Retained earnings (accumulated deficit) |
|
(363,034 |
) |
|
|
(353,360 |
) |
Total Stockholders' Equity |
|
1,533,459 |
|
|
|
1,517,071 |
|
Non-controlling interests |
|
19,697 |
|
|
|
18,541 |
|
Total Equity |
|
1,553,156 |
|
|
|
1,535,612 |
|
TOTAL LIABILITIES AND EQUITY |
$ |
15,132,600 |
|
|
$ |
15,315,930 |
|
SUPPLEMENTAL PER SHARE INFORMATION: |
|
|
|
||||
Book Value Per Common Share (3) |
$ |
13.69 |
|
|
$ |
13.83 |
|
(1) |
Derived from audited financial statements as of December 31, 2023. |
|
(2) |
Common shares issued and outstanding at March 31, 2024 include 2,103,725 shares of common stock issued under our ATM program and exclude 47,565 common shares repurchased during the quarter. |
|
(3) |
Based on total stockholders' equity less the aggregate liquidation preference of our preferred stock outstanding. |
Reconciliation of Net Income (Loss) to Adjusted Distributable Earnings
We calculate Adjusted Distributable Earnings as
Adjusted Distributable Earnings is a supplemental non-GAAP financial measure. We believe that the presentation of Adjusted Distributable Earnings provides information useful to investors, because: (i) we believe that it is a useful indicator of both current and projected long-term financial performance, in that it excludes the impact of certain current-period earnings components that we believe are less useful in forecasting long-term performance and dividend-paying ability; (ii) we use it to evaluate the effective net yield provided by our investment portfolio, after the effects of financial leverage and by Longbridge, to reflect the earnings from its reverse mortgage origination and servicing operations; and (iii) we believe that presenting Adjusted Distributable Earnings assists investors in measuring and evaluating our operating performance, and comparing our operating performance to that of our residential mortgage REIT and mortgage originator peers. Please note, however, that: (I) our calculation of Adjusted Distributable Earnings may differ from the calculation of similarly titled non-GAAP financial measures by our peers, with the result that these non-GAAP financial measures might not be directly comparable; and (II) Adjusted Distributable Earnings excludes certain items that may impact the amount of cash that is actually available for distribution.
In addition, because Adjusted Distributable Earnings is an incomplete measure of our financial results and differs from net income (loss) computed in accordance with
Furthermore, Adjusted Distributable Earnings is different from REIT taxable income. As a result, the determination of whether we have met the requirement to distribute at least
In setting our dividends, our Board of Directors considers our earnings, liquidity, financial condition, REIT distribution requirements, and financial covenants, along with other factors that the Board of Directors may deem relevant from time to time.
The following table reconciles, for the three-month periods ended March 31, 2024 and December 31, 2023, our Adjusted Distributable Earnings to the line on our Condensed Consolidated Statement of Operations entitled Net Income (Loss), which we believe is the most directly comparable
|
|
Three-Month Period Ended |
||||||||||||||||||||||||||||||
|
|
March 31, 2024 |
|
December 31, 2023 |
||||||||||||||||||||||||||||
(In thousands, except per share amounts) |
|
Investment
|
|
Longbridge |
|
Corporate/
|
|
Total |
|
Investment
|
|
Longbridge |
|
Corporate/
|
|
Total |
||||||||||||||||
Net Income (Loss) |
|
$ |
43,200 |
|
|
$ |
8,754 |
|
|
$ |
(17,903 |
) |
|
$ |
34,051 |
|
|
$ |
27,862 |
|
|
$ |
(3,362 |
) |
|
$ |
(5,175 |
) |
|
$ |
19,325 |
|
Income tax expense (benefit) |
|
|
— |
|
|
|
— |
|
|
|
61 |
|
|
|
61 |
|
|
|
— |
|
|
|
— |
|
|
|
129 |
|
|
|
129 |
|
Net income (loss) before income tax expense (benefit) |
|
|
43,200 |
|
|
|
8,754 |
|
|
|
(17,842 |
) |
|
|
34,112 |
|
|
|
27,862 |
|
|
|
(3,362 |
) |
|
|
(5,046 |
) |
|
|
19,454 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Realized (gains) losses, net(1) |
|
|
29,254 |
|
|
|
— |
|
|
|
1,620 |
|
|
|
30,874 |
|
|
|
22,001 |
|
|
|
— |
|
|
|
(2,166 |
) |
|
|
19,835 |
|
Unrealized (gains) losses, net(2) |
|
|
(25,945 |
) |
|
|
449 |
|
|
|
(106 |
) |
|
|
(25,602 |
) |
|
|
(7,904 |
) |
|
|
— |
|
|
|
(6,210 |
) |
|
|
(14,114 |
) |
Unrealized (gains) losses on reverse MSRs, net of hedging (gains) losses(3) |
|
|
— |
|
|
|
(13,943 |
) |
|
|
— |
|
|
|
(13,943 |
) |
|
|
— |
|
|
|
3,178 |
|
|
|
— |
|
|
|
3,178 |
|
Negative (positive) component of interest income represented by Catch-up Amortization Adjustment |
|
|
1,297 |
|
|
|
— |
|
|
|
— |
|
|
|
1,297 |
|
|
|
(530 |
) |
|
|
— |
|
|
|
— |
|
|
|
(530 |
) |
Non-capitalized transaction costs and other expense adjustments(4) |
|
|
923 |
|
|
|
4,068 |
|
|
|
500 |
|
|
|
5,491 |
|
|
|
105 |
|
|
|
731 |
|
|
|
5,019 |
|
|
|
5,855 |
|
Bargain purchase (gain) net of expenses related to the Arlington Merger(5) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,058 |
) |
|
|
(6,058 |
) |
(Earnings) losses from investments in unconsolidated entities |
|
|
(2,226 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2,226 |
) |
|
|
(2,547 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2,547 |
) |
Adjusted distributable earnings from investments in unconsolidated entities(6) |
|
|
816 |
|
|
|
— |
|
|
|
— |
|
|
|
816 |
|
|
|
429 |
|
|
|
— |
|
|
|
— |
|
|
|
429 |
|
Total Adjusted Distributable Earnings |
|
$ |
47,319 |
|
|
$ |
(672 |
) |
|
$ |
(15,828 |
) |
|
$ |
30,819 |
|
|
$ |
39,416 |
|
|
$ |
547 |
|
|
$ |
(14,461 |
) |
|
$ |
25,502 |
|
Dividends on preferred stock |
|
|
— |
|
|
|
— |
|
|
|
6,654 |
|
|
|
6,654 |
|
|
|
— |
|
|
|
— |
|
|
|
6,104 |
|
|
|
6,104 |
|
Adjusted Distributable Earnings attributable to non-controlling interests |
|
|
216 |
|
|
|
(2 |
) |
|
|
225 |
|
|
|
439 |
|
|
|
280 |
|
|
|
2 |
|
|
|
211 |
|
|
|
493 |
|
Adjusted Distributable Earnings Attributable to Common Stockholders |
|
$ |
47,103 |
|
|
$ |
(670 |
) |
|
$ |
(22,707 |
) |
|
$ |
23,726 |
|
|
$ |
39,136 |
|
|
$ |
545 |
|
|
$ |
(20,776 |
) |
|
$ |
18,905 |
|
Adjusted Distributable Earnings Attributable to Common Stockholders, per share |
|
$ |
0.56 |
|
|
$ |
(0.01 |
) |
|
$ |
(0.27 |
) |
|
$ |
0.28 |
|
|
$ |
0.55 |
|
|
$ |
0.01 |
|
|
$ |
(0.29 |
) |
|
$ |
0.27 |
|
(1) |
Includes realized (gains) losses on securities and loans, REO, financial derivatives (excluding periodic settlements on interest rate swaps), and foreign currency transactions which are components of Other Income (Loss) on the Condensed Consolidated Statement of Operations. |
|
(2) |
Includes unrealized (gains) losses on securities and loans, REO, financial derivatives (excluding periodic settlements on interest rate swaps), borrowings carried at fair value, MSR-related investments, and foreign currency transactions which are components of Other Income (Loss) on the Condensed Consolidated Statement of Operations. |
|
(3) |
Represents net change in fair value of the HMBS MSR Equivalent and Reverse MSRs attributable to changes in market conditions and model assumptions. This adjustment also includes net (gains) losses on certain hedging instruments, which are components of realized and/or unrealized gains (losses) on financial derivatives, net on the Condensed Consolidated Statement of Operations. |
|
(4) |
For the three-month period ended March 31, 2024, includes |
|
(5) |
For the three-month period ended December 31, 2023, represents the reversal of the bargain purchase gain of |
|
(6) |
Includes net interest income and operating expenses for certain investments in unconsolidated entities. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240507480395/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
<p>What was Ellington Financial Inc.'s net income for Q1 2024?</p>
Ellington Financial Inc. reported net income of $26.9 million for Q1 2024.
<p>What was Ellington Financial Inc.'s dividend yield based on the May 6, 2024 closing stock price?</p>
Ellington Financial Inc.'s dividend yield was 13.3% based on the May 6, 2024 closing stock price.
<p>What was the recourse debt-to-equity ratio for Ellington Financial Inc. as of March 31, 2024?</p>
Ellington Financial Inc.'s recourse debt-to-equity ratio was 1.8:1 as of March 31, 2024.
<p>What were the key drivers of Ellington Financial Inc.'s Q1 2024 results?</p>
Ellington Financial Inc.'s Q1 2024 results were driven by the credit strategy, Longbridge, and Agency strategy performance.
<p>What did Ellington Financial Inc. achieve during the quarter?</p>
Ellington Financial Inc. achieved several milestones, including the completion of its inaugural securitization of proprietary reverse mortgage loans.
