Ellington Financial Inc. Reports Fourth Quarter 2023 Results
- Net income of $12.5 million reported for Q4 2023.
- Adjusted Distributable Earnings stood at $18.9 million.
- Merger with Arlington Asset Investment Corp. completed in December 2023.
- Recourse debt-to-equity ratio of 2.0:1 as of December 31, 2023.
- Monthly dividend reduction planned from $0.15 to $0.13 per share.
- Merger with Arlington was approximately 1.1% dilutive to book value per share.
- Net losses reported from Longbridge and other positions.
- Decrease in adjusted distributable earnings during the quarter.
- Delinquencies observed on residential and commercial mortgage loan portfolios.
Insights
The financial results for Ellington Financial Inc. reflect a multifaceted performance across various strategies. The net income of $12.5 million, or $0.18 per share, is a critical indicator for investors, as it directly affects the company's valuation and the potential return on investment. The adjusted distributable earnings of $18.9 million, or $0.27 per common share, which is a non-GAAP measure, provide a more nuanced view of the company's profitability by excluding certain non-recurring items. This measure is often used by analysts to assess the company's operating performance.
The reduction in monthly dividend from $0.15 to $0.13 per share is a significant signal for stakeholders, as dividends are a direct return on investment for shareholders. The implied dividend yield of 12.8% is notably high, which may be attractive to income-focused investors but also suggests a potential risk premium associated with the stock.
The book value per common share of $13.83, inclusive of dividends, is another vital metric as it represents the net asset value of the company. However, the merger with Arlington Asset Investment Corp. being dilutive to book value by approximately 1.1% indicates a short-term negative impact on shareholder equity, which requires careful consideration by investors.
The strategic moves by Ellington Financial, including the merger with Arlington and the capital rotation into higher-yielding investments, indicate an aggressive approach to growth and portfolio optimization. The reallocation of capital from non-QM loan portfolio sales instead of securitization, given the strong loan bids, shows adaptability to market conditions. This could potentially enhance the company's competitive position in the mortgage and credit markets.
However, the mention of an uptick in delinquencies within the residential and commercial mortgage loan portfolios warrants attention. While the overall credit performance remains strong, any increase in delinquencies could signal future credit risks, which may impact investor sentiment and the company's financial stability.
The decrease in the recourse debt-to-equity ratio from 2.3:1 to 2.0:1, adjusted for unsettled purchases and sales, may indicate a healthier balance sheet. However, the overall debt-to-equity ratio of 8.6:1, when including non-recourse borrowings, remains high, suggesting significant leverage that could amplify risks in adverse market conditions.
The broader economic implications of Ellington Financial's quarterly results can be seen in the context of interest rate environments and real estate markets. The company's performance in the Agency RMBS strategy, which outperformed U.S. Treasury securities and interest rate swaps, reflects a market environment where interest rates and volatility declined towards the end of the year. This could be indicative of broader market trends and central bank policies that impact fixed income markets.
The performance of the credit strategy, with strong net interest income and net gains on non-agency RMBS investments, suggests that there is still robust demand and profitability within certain segments of the credit market. However, the increase in delinquencies could be a harbinger of potential economic slowdown or sector-specific challenges.
The strategic shift in Ellington Financial's portfolio management, particularly the sale of non-QM loans and the leveraging of the MSR portfolio, reflects a response to market liquidity and yield spread conditions. These moves can be seen as a microcosm of the financial sector's adaptation to changing economic landscapes.
Highlights
-
Net income attributable to common stockholders of
$12.5 million $0.18 -
$27.3 million $0.38 -
$12.7 million $0.18 -
$14.6 million $0.20
-
-
$(3.4) million $(0.04)
-
-
Adjusted Distributable Earnings2 of
$18.9 million $0.27 -
Book value per common share as of December 31, 2023 of
$13.83 $0.45 -
Management expects to recommend to our board of directors a reduction of the monthly dividend from
$0.15 $0.13 12.8% based on the February 23, 2024 closing stock price of$12.16 - Recourse debt-to-equity ratio3 of 2.0:1 as of December 31, 2023, adjusted for unsettled purchases and sales. Including all non-recourse borrowings, which primarily consist of securitization-related liabilities, debt-to-equity ratio of 8.6:14.
-
Cash and cash equivalents of
$228.9 million $416.3 million -
Closed the merger with Arlington Asset Investment Corp. ("Arlington") on December 14, 2023, which was approximately
1.1% dilutive to book value per share.
Fourth Quarter 2023 Results
“In the fourth quarter, we reported net income of
“In December, we completed the merger with Arlington, immediately adding scale and further strengthening our balance sheet. We promptly got to work freeing up capital in the Arlington portfolio, both monetizing Arlington’s liquid assets in a constructive market and adding modest leverage to the MSR portfolio. Since then, we have been rotating that capital into higher-yielding investments, which we expect to drive incremental value to shareholders in 2024. Despite incremental expansion of the portfolio in the fourth quarter, our recourse leverage ratio actually ticked down sequentially after absorbing Arlington’s low-leverage capital structure. In addition, in recent months we’ve been choosing to sell much of our non-QM loan portfolio instead of securitizing it, to take advantage of strong whole loan bids in the marketplace.
“Our adjusted distributable earnings did drop during the quarter, but it should recover as Longbridge continues to build back towards profitability, as we work out a few nonperforming commercial mortgage loans and REO assets, and as we continue to deploy new capital and rotate capital into higher-yielding sectors. That said, management expects to recommend to the board a reduction of the monthly dividend from
“Looking ahead, our diversified capital base now includes the common equity, low-cost preferred equity and unsecured debt added through the merger. This diversified capital base, together with our ample liquidity and additional untapped borrowing capacity, should allow us to capitalize on the many attractive investment opportunities we are seeing, including high-yielding lending opportunities in our proprietary loan pipelines and distressed situations in commercial real estate debt.”
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 by
Strong net interest income5 and net gains on our non-agency RMBS investments drove positive results in the credit strategy, with net losses on consumer loans, interest rate and credit hedges being the primary detractors. Our investments in loan originators generated a net positive gain overall as well. We saw a further uptick in delinquencies on 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 nonperforming commercial mortgage assets.
During the quarter, the net interest margin6 on our credit portfolio declined to
Agency Performance
Our total long Agency RMBS portfolio decreased by
In October, interest rates and volatility increased, which drove yield spreads wider in most fixed income sectors, including Agency RMBS. Markets then reversed course, however, with interest rates and volatility declining, and yield spreads tightening, through year end. Overall for the fourth quarter, Agency RMBS outperformed
Average pay-ups on our specified pools increased to
During the quarter, an increase in asset yields on our Agency strategy only partially offset an increase in cost of funds, which caused the net interest margin5 on our Agency RMBS, excluding the Catch-up Amortization Adjustment, to decrease to
Longbridge Summary
Our Longbridge portfolio generated a net loss attributable to common stockholders of
Our Longbridge portfolio increased by
Corporate/Other Summary
Our results for the quarter reflect a net gain, driven by the decline 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.
Our results for the quarter also include the bargain purchase gain associated with the closing of the merger with Arlington, partially offset by merger-related transaction expenses including certain compensation and severance costs that had been previously negotiated as part of the merger agreement. Although the bargain purchase gain, net of the related expenses, contributed positively to net income during the quarter, the common shares issued as consideration for the merger were issued at a discount to our book value per share, and the transaction was dilutive to common shareholders overall by approximately
Finally, our results include the additional costs associated with the termination of our previously announced merger with Great Ajax Corp in October, including the initial markdown on the Great Ajax common shares we purchased in connection with that termination, partially offset by net gains on the fixed payer interest rate swaps that we held as a hedge prior to termination of the merger.
| _________________________ | |
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 December 31, 2023 and September 30, 2023:
|
|
December 31, 2023 |
|
September 30, 2023 |
||||||||
($ in thousands) |
|
Fair Value |
|
% |
|
Fair Value |
|
% |
||||
Dollar denominated: |
|
|
|
|
|
|
|
|
||||
CLOs(2) |
|
$ |
33,920 |
|
0.8 |
% |
|
$ |
29,294 |
|
0.8 |
% |
CMBS |
|
|
45,432 |
|
1.1 |
% |
|
|
20,587 |
|
0.5 |
% |
Commercial mortgage loans and REO(3)(4) |
|
|
330,296 |
|
7.9 |
% |
|
|
365,329 |
|
9.4 |
% |
Consumer loans and ABS backed by consumer loans(2) |
|
|
83,130 |
|
2.0 |
% |
|
|
90,474 |
|
2.3 |
% |
Other loans and ABS(5) |
|
|
10,314 |
|
0.3 |
% |
|
|
1,285 |
|
— |
% |
Corporate debt and equity and corporate loans |
|
|
29,720 |
|
0.7 |
% |
|
|
21,836 |
|
0.6 |
% |
Debt and equity investments in loan origination-related entities(6) |
|
|
38,528 |
|
0.9 |
% |
|
|
37,947 |
|
1.0 |
% |
Non-Agency RMBS |
|
|
253,522 |
|
6.1 |
% |
|
|
259,543 |
|
6.7 |
% |
Non-QM loans and retained non-QM RMBS(7) |
|
|
2,037,914 |
|
48.9 |
% |
|
|
2,060,036 |
|
53.0 |
% |
Residential transition loans and other residential mortgage loans and REO(3) |
|
|
1,113,816 |
|
26.8 |
% |
|
|
975,667 |
|
25.1 |
% |
Forward MSR-related investments |
|
|
163,336 |
|
3.9 |
% |
|
|
— |
|
— |
% |
Non-Dollar denominated: |
|
|
|
|
|
|
|
|
||||
CLOs(2) |
|
|
4,234 |
|
0.1 |
% |
|
|
1,578 |
|
0.1 |
% |
Corporate debt and equity |
|
|
189 |
|
— |
% |
|
|
177 |
|
— |
% |
RMBS(8) |
|
|
19,674 |
|
0.5 |
% |
|
|
19,608 |
|
0.5 |
% |
Total long credit portfolio |
|
$ |
4,164,025 |
|
100.0 |
% |
|
$ |
3,883,361 |
|
100.0 |
% |
Less: Non-retained tranches of consolidated securitization trusts |
|
|
1,424,804 |
|
|
|
|
1,398,748 |
|
|
||
Total long credit portfolio excluding non-retained tranches of consolidated securitization trusts |
|
$ |
2,739,221 |
|
|
|
$ |
2,484,613 |
|
|
||
(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(1)
The following table summarizes our Agency RMBS portfolio holdings as of December 31, 2023 and September 30, 2023:
|
|
December 31, 2023 |
|
September 30, 2023 |
||||||||
($ in thousands) |
|
Fair Value |
|
% |
|
Fair Value |
|
% |
||||
Long Agency RMBS: |
|
|
|
|
|
|
|
|
||||
Fixed rate |
|
$ |
798,211 |
|
93.5 |
% |
|
$ |
914,262 |
|
94.8 |
% |
Floating rate |
|
|
5,130 |
|
0.6 |
% |
|
|
5,154 |
|
0.5 |
% |
Reverse mortgages |
|
|
37,171 |
|
4.4 |
% |
|
|
33,529 |
|
3.5 |
% |
IOs |
|
|
12,712 |
|
1.5 |
% |
|
|
11,341 |
|
1.2 |
% |
Total long Agency RMBS |
|
$ |
853,224 |
|
100.0 |
% |
|
$ |
964,286 |
|
100.0 |
% |
(1) |
This information does not include |
Longbridge Portfolio(1)
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. The following table summarizes Longbridge's loan-related assets as of December 31, 2023 and September 30, 2023:
|
|
December 31, 2023 |
|
September 30, 2023 |
||||
|
|
(In thousands) |
||||||
HMBS assets(2) |
|
$ |
8,511,682 |
|
|
$ |
8,256,881 |
|
Less: HMBS liabilities |
|
|
(8,423,235 |
) |
|
|
(8,181,922 |
) |
HMBS MSR Equivalent |
|
|
88,447 |
|
|
|
74,959 |
|
Unsecuritized HECM loans(3) |
|
|
102,553 |
|
|
|
135,061 |
|
Proprietary reverse mortgage loans |
|
|
329,576 |
|
|
|
247,021 |
|
Reverse MSRs |
|
|
29,580 |
|
|
|
29,653 |
|
Unsecuritized REO |
|
|
2,218 |
|
|
|
1,484 |
|
Total |
|
$ |
552,374 |
|
|
$ |
488,178 |
|
(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 December 31, 2023, includes |
The following table summarizes Longbridge's origination volumes by channel for the three-month periods ended December 31, 2023 and September 30, 2023:
($ In thousands) |
|
December 31, 2023 |
|
September 30, 2023 |
||||||||||||
Channel |
|
Units |
|
New Loan Origination Volume(1) |
|
% of New Loan Origination Volume |
|
Units |
|
New Loan Origination Volume(1) |
|
% of New Loan Origination Volume |
||||
Retail |
|
363 |
|
$ |
47,868 |
|
18 |
% |
|
384 |
|
$ |
55,576 |
|
18 |
% |
Wholesale and correspondent |
|
1,223 |
|
|
214,314 |
|
82 |
% |
|
1,367 |
|
|
251,215 |
|
82 |
% |
Total |
|
1,586 |
|
$ |
262,182 |
|
100 |
% |
|
1,751 |
|
$ |
306,791 |
|
100 |
% |
(1) |
Represents initial borrowed amounts on reverse mortgage loans. |
Financing
Our recourse debt-to-equity ratio2, excluding
The following table summarizes our outstanding borrowings and debt-to-equity ratios as of December 31, 2023 and September 30, 2023:
|
|
December 31, 2023 |
|
September 30, 2023 |
||||||
|
|
Outstanding Borrowings(1) |
|
Debt-to-Equity Ratio(2) |
|
Outstanding Borrowings(1) |
|
Debt-to-Equity Ratio(2) |
||
|
|
(In thousands) |
|
|
|
(In thousands) |
|
|
||
Recourse borrowings(3)(4) |
|
$ |
3,510,945 |
|
2.3:1 |
|
$ |
3,084,174 |
|
2.3:1 |
Non-recourse borrowings(4) |
|
|
9,847,903 |
|
6.4:1 |
|
|
9,586,489 |
|
7.2:1 |
Total Borrowings |
|
$ |
13,358,848 |
|
8.7:1 |
|
$ |
12,670,663 |
|
9.5:1 |
Total Equity |
|
$ |
1,535,612 |
|
|
|
$ |
1,337,417 |
|
|
Recourse borrowings excluding |
|
|
|
2.0:1 |
|
|
|
2.3:1 |
||
Total borrowings excluding |
|
|
|
8.4:1 |
|
|
|
9.4:1 |
||
(1) |
Includes borrowings under repurchase agreements, other secured borrowings, other secured borrowings, at fair value, and unsecured debt, 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 us. Including such borrowings, our debt-to-equity ratio based on total recourse borrowings is 2.4:1 as of both December 31, 2023 and September 30, 2023. |
(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 December 31, 2023:
|
|
Investment Portfolio |
|
Longbridge |
|
Corporate/Other |
|
Total |
|
Per Share |
||||||||||||||||||
(In thousands except per share amounts) |
|
Credit |
|
Agency |
|
Investment Portfolio Subtotal |
|
|
|
|
||||||||||||||||||
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 |
) |
|
|
0.00 |
|
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. |
The following table summarizes our operating results by strategy for the three-month period ended September 30, 2023:
|
|
Investment Portfolio |
|
Longbridge |
|
Corporate/Other |
|
Total |
|
Per Share |
||||||||||||||||||
(In thousands except per share amounts) |
|
Credit |
|
Agency |
|
Investment Portfolio Subtotal |
|
|
|
|
||||||||||||||||||
Interest income and other income (1) |
|
$ |
77,809 |
|
|
$ |
10,490 |
|
|
$ |
88,299 |
|
|
$ |
9,593 |
|
|
$ |
1,581 |
|
|
$ |
99,473 |
|
|
$ |
1.45 |
|
Interest expense |
|
|
(43,791 |
) |
|
|
(11,619 |
) |
|
|
(55,410 |
) |
|
|
(7,540 |
) |
|
|
(3,117 |
) |
|
|
(66,067 |
) |
|
|
(0.96 |
) |
Realized gain (loss), net |
|
|
(10,226 |
) |
|
|
(6,007 |
) |
|
|
(16,233 |
) |
|
|
— |
|
|
|
— |
|
|
|
(16,233 |
) |
|
|
(0.24 |
) |
Unrealized gain (loss), net |
|
|
(9,205 |
) |
|
|
(33,034 |
) |
|
|
(42,239 |
) |
|
|
19,201 |
|
|
|
(4,410 |
) |
|
|
(27,448 |
) |
|
|
(0.40 |
) |
Net change from reverse mortgage loans and HMBS obligations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(15,800 |
) |
|
|
— |
|
|
|
(15,800 |
) |
|
|
(0.23 |
) |
Earnings in unconsolidated entities |
|
|
(978 |
) |
|
|
— |
|
|
|
(978 |
) |
|
|
— |
|
|
|
— |
|
|
|
(978 |
) |
|
|
(0.01 |
) |
Interest rate hedges and other activity, net(2) |
|
|
16,516 |
|
|
|
29,639 |
|
|
|
46,155 |
|
|
|
23,948 |
|
|
|
11,082 |
|
|
|
81,185 |
|
|
|
1.18 |
|
Credit hedges and other activities, net(3) |
|
|
(1,141 |
) |
|
|
— |
|
|
|
(1,141 |
) |
|
|
— |
|
|
|
(235 |
) |
|
|
(1,376 |
) |
|
|
(0.02 |
) |
Income tax (expense) benefit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(224 |
) |
|
|
(224 |
) |
|
|
— |
|
Investment related expenses |
|
|
(2,330 |
) |
|
|
— |
|
|
|
(2,330 |
) |
|
|
(7,273 |
) |
|
|
— |
|
|
|
(9,603 |
) |
|
|
(0.14 |
) |
Other expenses |
|
|
(1,441 |
) |
|
|
— |
|
|
|
(1,441 |
) |
|
|
(18,046 |
) |
|
|
(10,362 |
) |
|
|
(29,849 |
) |
|
|
(0.44 |
) |
Net income (loss) |
|
|
25,213 |
|
|
|
(10,531 |
) |
|
|
14,682 |
|
|
|
4,083 |
|
|
|
(5,685 |
) |
|
|
13,080 |
|
|
|
0.19 |
|
Dividends on preferred stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5,980 |
) |
|
|
(5,980 |
) |
|
|
(0.09 |
) |
Net (income) loss attributable to non-participating non-controlling interests |
|
|
(438 |
) |
|
|
— |
|
|
|
(438 |
) |
|
|
12 |
|
|
|
(3 |
) |
|
|
(429 |
) |
|
|
(0.01 |
) |
Net income (loss) attributable to common stockholders and participating non-controlling interests |
|
|
24,775 |
|
|
|
(10,531 |
) |
|
|
14,244 |
|
|
|
4,095 |
|
|
|
(11,668 |
) |
|
|
6,671 |
|
|
|
0.10 |
|
Net (income) loss attributable to participating non-controlling interests |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(80 |
) |
|
|
(80 |
) |
|
|
||
Net income (loss) attributable to common stockholders |
|
$ |
24,775 |
|
|
$ |
(10,531 |
) |
|
$ |
14,244 |
|
|
$ |
4,095 |
|
|
$ |
(11,748 |
) |
|
$ |
6,591 |
|
|
$ |
0.10 |
|
Net income (loss) attributable to common stockholders per share of common stock |
|
$ |
0.37 |
|
|
$ |
(0.16 |
) |
|
$ |
0.21 |
|
|
$ |
0.06 |
|
|
$ |
(0.17 |
) |
|
$ |
0.10 |
|
|
|
||
Weighted average shares of common stock and convertible units(4) outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
68,605 |
|
|
|
||||||||||||
Weighted average shares of common stock outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
67,790 |
|
|
|
||||||||||||
(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. |
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 Tuesday, February 27, 2024, to discuss our financial results for the quarter ended December 31, 2023. To participate in the event by telephone, please dial (800) 225-9448 at least 10 minutes prior to the start time and reference the conference ID EFCQ423. International callers should dial (203) 518-9708 and reference the same conference ID. The conference call will also be webcast live over the Internet and can be accessed via the "For Our Shareholders" 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 Our Shareholders—Presentations."
A dial-in replay of the conference call will be available on Tuesday, February 27, 2024, at approximately 2:00 p.m. Eastern Time through Tuesday, March 5, 2024 at approximately 11:59 p.m. Eastern Time. To access this replay, please dial (800) 839-5103. International callers should dial (402) 220-2687. 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 |
|
Year Ended |
||||||||
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2023 |
||||||
(In thousands, except per share amounts) |
|
|
|
|
|
||||||
NET INTEREST INCOME |
|
|
|
|
|
||||||
Interest income |
$ |
98,690 |
|
|
$ |
96,216 |
|
|
$ |
370,172 |
|
Interest expense |
|
(70,699 |
) |
|
|
(68,702 |
) |
|
|
(262,451 |
) |
Total net interest income |
|
27,991 |
|
|
|
27,514 |
|
|
|
107,721 |
|
Other Income (Loss) |
|
|
|
|
|
||||||
Realized gains (losses) on securities and loans, net |
|
(22,475 |
) |
|
|
(17,362 |
) |
|
|
(93,993 |
) |
Realized gains (losses) on financial derivatives, net |
|
9,437 |
|
|
|
26,283 |
|
|
|
40,054 |
|
Realized gains (losses) on real estate owned, net |
|
(3,773 |
) |
|
|
(155 |
) |
|
|
(5,229 |
) |
Unrealized gains (losses) on securities and loans, net |
|
147,273 |
|
|
|
(63,850 |
) |
|
|
171,296 |
|
Unrealized gains (losses) on financial derivatives, net |
|
(81,957 |
) |
|
|
55,794 |
|
|
|
(15,060 |
) |
Unrealized gains (losses) on real estate owned, net |
|
2,710 |
|
|
|
(1,712 |
) |
|
|
2,177 |
|
Unrealized gains (losses) on other secured borrowings, at fair value, net |
|
(52,687 |
) |
|
|
18,660 |
|
|
|
(51,554 |
) |
Unrealized gains (losses) on unsecured borrowings, at fair value |
|
(1,954 |
) |
|
|
(4,410 |
) |
|
|
146 |
|
Net change from reverse mortgage loans, at fair value |
|
208,661 |
|
|
|
99,929 |
|
|
|
503,831 |
|
Net change related to HMBS obligations, at fair value |
|
(179,758 |
) |
|
|
(115,729 |
) |
|
|
(451,598 |
) |
Bargain purchase gain |
|
28,175 |
|
|
|
— |
|
|
|
28,175 |
|
Other, net |
|
2,988 |
|
|
|
28,772 |
|
|
|
40,954 |
|
Total other income (loss) |
|
56,640 |
|
|
|
26,220 |
|
|
|
169,199 |
|
EXPENSES |
|
|
|
|
|
||||||
Base management fee to affiliate, net of rebates |
|
5,660 |
|
|
|
4,890 |
|
|
|
20,419 |
|
Investment related expenses: |
|
|
|
|
|
||||||
Servicing expense |
|
5,328 |
|
|
|
5,261 |
|
|
|
20,364 |
|
Other |
|
4,227 |
|
|
|
4,342 |
|
|
|
16,860 |
|
Professional fees |
|
12,411 |
|
|
|
3,847 |
|
|
|
26,164 |
|
Compensation and benefits |
|
33,173 |
|
|
|
14,675 |
|
|
|
78,434 |
|
Other expenses |
|
6,925 |
|
|
|
6,437 |
|
|
|
25,469 |
|
Total expenses |
|
67,724 |
|
|
|
39,452 |
|
|
|
187,710 |
|
Net Income (Loss) before Income Tax Expense (Benefit) and Earnings from Investments in Unconsolidated Entities |
|
16,907 |
|
|
|
14,282 |
|
|
|
89,210 |
|
Income tax expense (benefit) |
|
129 |
|
|
|
224 |
|
|
|
457 |
|
Earnings (losses) from investments in unconsolidated entities |
|
2,547 |
|
|
|
(978 |
) |
|
|
(855 |
) |
Net Income (Loss) |
|
19,325 |
|
|
|
13,080 |
|
|
|
87,898 |
|
Net Income (Loss) Attributable to Non-Controlling Interests |
|
724 |
|
|
|
509 |
|
|
|
3,814 |
|
Dividends on Preferred Stock |
|
6,104 |
|
|
|
5,980 |
|
|
|
23,182 |
|
Net Income (Loss) Attributable to Common Stockholders |
$ |
12,497 |
|
|
$ |
6,591 |
|
|
$ |
60,902 |
|
Net Income (Loss) per Common Share: |
|
|
|
|
|
||||||
Basic and Diluted |
$ |
0.18 |
|
|
$ |
0.10 |
|
|
$ |
0.89 |
|
Weighted average shares of common stock outstanding |
|
71,338 |
|
|
|
67,790 |
|
|
|
68,252 |
|
Weighted average shares of common stock and convertible units outstanding |
|
72,136 |
|
|
|
68,605 |
|
|
|
69,063 |
|
ELLINGTON FINANCIAL INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
|||||||||||
|
As of |
||||||||||
(In thousands, except share and per share amounts) |
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022(1) |
||||||
ASSETS |
|
|
|
|
|
||||||
Cash and cash equivalents |
$ |
228,927 |
|
|
$ |
174,664 |
|
|
$ |
217,053 |
|
Restricted cash |
|
1,618 |
|
|
|
1,604 |
|
|
|
4,816 |
|
Securities, at fair value |
|
1,518,377 |
|
|
|
1,502,049 |
|
|
|
1,459,465 |
|
Loans, at fair value |
|
12,306,636 |
|
|
|
11,920,872 |
|
|
|
11,626,008 |
|
Loan commitments, at fair value |
|
2,584 |
|
|
|
3,752 |
|
|
|
3,060 |
|
Forward MSR-related investments, at fair value |
|
163,336 |
|
|
|
— |
|
|
|
— |
|
Mortgage servicing rights, at fair value |
|
29,580 |
|
|
|
29,653 |
|
|
|
8,108 |
|
Investments in unconsolidated entities, at fair value |
|
116,414 |
|
|
|
113,474 |
|
|
|
127,046 |
|
Real estate owned |
|
22,085 |
|
|
|
23,570 |
|
|
|
28,403 |
|
Financial derivatives–assets, at fair value |
|
143,996 |
|
|
|
198,023 |
|
|
|
132,518 |
|
Reverse repurchase agreements |
|
173,145 |
|
|
|
175,197 |
|
|
|
226,444 |
|
Due from brokers |
|
51,884 |
|
|
|
38,870 |
|
|
|
36,761 |
|
Investment related receivables |
|
480,249 |
|
|
|
167,447 |
|
|
|
139,413 |
|
Other assets |
|
77,099 |
|
|
|
95,866 |
|
|
|
76,791 |
|
Total Assets |
$ |
15,315,930 |
|
|
$ |
14,445,041 |
|
|
$ |
14,085,886 |
|
LIABILITIES |
|
|
|
|
|
||||||
Securities sold short, at fair value |
$ |
154,303 |
|
|
$ |
163,832 |
|
|
$ |
209,203 |
|
Repurchase agreements |
|
2,967,437 |
|
|
|
2,573,043 |
|
|
|
2,609,685 |
|
Financial derivatives–liabilities, at fair value |
|
61,776 |
|
|
|
38,520 |
|
|
|
54,198 |
|
Due to brokers |
|
62,442 |
|
|
|
80,180 |
|
|
|
34,507 |
|
Investment related payables |
|
37,403 |
|
|
|
36,641 |
|
|
|
49,323 |
|
Other secured borrowings |
|
245,827 |
|
|
|
301,131 |
|
|
|
276,058 |
|
Other secured borrowings, at fair value |
|
1,424,668 |
|
|
|
1,404,567 |
|
|
|
1,539,881 |
|
HMBS-related obligations, at fair value |
|
8,423,235 |
|
|
|
8,181,922 |
|
|
|
7,787,155 |
|
Unsecured borrowings, at fair value(2) |
|
272,765 |
|
|
|
189,735 |
|
|
|
191,835 |
|
Base management fee payable to affiliate |
|
5,660 |
|
|
|
4,890 |
|
|
|
4,641 |
|
Dividend payable |
|
11,528 |
|
|
|
14,343 |
|
|
|
12,243 |
|
Interest payable |
|
22,933 |
|
|
|
20,078 |
|
|
|
22,452 |
|
Accrued expenses and other liabilities |
|
90,341 |
|
|
|
98,742 |
|
|
|
73,819 |
|
Total Liabilities |
|
13,780,318 |
|
|
|
13,107,624 |
|
|
|
12,865,000 |
|
EQUITY |
|
|
|
|
|
||||||
Preferred stock, par value |
|
355,551 |
|
|
|
323,920 |
|
|
|
227,432 |
|
Common stock, par value |
|
83 |
|
|
|
68 |
|
|
|
64 |
|
Additional paid-in-capital |
|
1,514,797 |
|
|
|
1,323,124 |
|
|
|
1,259,352 |
|
Retained earnings (accumulated deficit) |
|
(353,360 |
) |
|
|
(333,622 |
) |
|
|
(290,881 |
) |
Total Stockholders' Equity |
|
1,517,071 |
|
|
|
1,313,490 |
|
|
|
1,195,967 |
|
Non-controlling interests |
|
18,541 |
|
|
|
23,927 |
|
|
|
24,919 |
|
Total Equity |
|
1,535,612 |
|
|
|
1,337,417 |
|
|
|
1,220,886 |
|
TOTAL LIABILITIES AND EQUITY |
$ |
15,315,930 |
|
|
$ |
14,445,041 |
|
|
$ |
14,085,886 |
|
SUPPLEMENTAL PER SHARE INFORMATION: |
|
|
|
|
|
||||||
Book Value Per Common Share (4) |
$ |
13.83 |
|
|
$ |
14.33 |
|
|
$ |
15.05 |
|
(1) |
Derived from audited financial statements as of December 31, 2022. |
(2) |
Conformed to current period presentation. Includes the Company's senior notes, issued and outstanding prior to the Arlington Merger, and various senior and subordinated debt assumed as a result of the Arlington Merger. |
(3) |
Common shares issued and outstanding at December 31, 2023 include 11,040,704 shares of common stock issued as a result of the Arlington Merger, 3,640,904 shares of common stock issued under our ATM program, and 84,720 shares of common stock issued as a result of LTIP Unit conversions. |
(4) |
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 December 31, 2023 and September 30, 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 |
||||||||||||||||||||||||||||||
|
|
December 31, 2023 |
|
September 30, 2023 |
||||||||||||||||||||||||||||
(In thousands, except per share amounts) |
|
Investment Portfolio |
|
Longbridge |
|
Corporate/Other |
|
Total |
|
Investment Portfolio |
|
Longbridge |
|
Corporate/Other |
|
Total |
||||||||||||||||
Net Income (Loss) |
|
$ |
27,862 |
|
|
$ |
(3,362 |
) |
|
$ |
(5,175 |
) |
|
$ |
19,325 |
|
|
$ |
14,682 |
|
|
$ |
4,083 |
|
|
$ |
(5,685 |
) |
|
$ |
13,080 |
|
Income tax expense (benefit) |
|
|
— |
|
|
|
— |
|
|
|
129 |
|
|
|
129 |
|
|
|
— |
|
|
|
— |
|
|
|
224 |
|
|
|
224 |
|
Net income (loss) before income tax expense (benefit) |
|
|
27,862 |
|
|
|
(3,362 |
) |
|
|
(5,046 |
) |
|
|
19,454 |
|
|
|
14,682 |
|
|
|
4,083 |
|
|
|
(5,461 |
) |
|
|
13,304 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Realized (gains) losses, net(1) |
|
|
22,001 |
|
|
|
— |
|
|
|
(2,166 |
) |
|
|
19,835 |
|
|
|
4,409 |
|
|
|
— |
|
|
|
840 |
|
|
|
5,249 |
|
Unrealized (gains) losses, net(2) |
|
|
(7,904 |
) |
|
|
— |
|
|
|
(6,210 |
) |
|
|
(14,114 |
) |
|
|
22,946 |
|
|
|
— |
|
|
|
(8,230 |
) |
|
|
14,716 |
|
Unrealized (gains) losses on reverse MSRs, net of hedging (gains) losses(3) |
|
|
— |
|
|
|
3,178 |
|
|
|
— |
|
|
|
3,178 |
|
|
|
— |
|
|
|
(7,974 |
) |
|
|
— |
|
|
|
(7,974 |
) |
Negative (positive) component of interest income represented by Catch-up Amortization Adjustment |
|
|
(530 |
) |
|
|
— |
|
|
|
— |
|
|
|
(530 |
) |
|
|
(349 |
) |
|
|
— |
|
|
|
— |
|
|
|
(349 |
) |
Non-capitalized transaction costs and other expense adjustments(4) |
|
|
105 |
|
|
|
731 |
|
|
|
5,019 |
|
|
|
5,855 |
|
|
|
995 |
|
|
|
881 |
|
|
|
1,486 |
|
|
|
3,362 |
|
Bargain purchase (gain) net of expenses related to the Arlington Merger(5) |
|
|
— |
|
|
|
— |
|
|
|
(6,058 |
) |
|
|
(6,058 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
(Earnings) losses from investments in unconsolidated entities |
|
|
(2,547 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2,547 |
) |
|
|
978 |
|
|
|
— |
|
|
|
— |
|
|
|
978 |
|
Adjusted distributable earnings from investments in unconsolidated entities(6) |
|
|
429 |
|
|
|
— |
|
|
|
— |
|
|
|
429 |
|
|
|
2,179 |
|
|
|
— |
|
|
|
— |
|
|
|
2,179 |
|
Total Adjusted Distributable Earnings |
|
$ |
39,416 |
|
|
$ |
547 |
|
|
$ |
(14,461 |
) |
|
$ |
25,502 |
|
|
$ |
45,840 |
|
|
$ |
(3,010 |
) |
|
$ |
(11,365 |
) |
|
$ |
31,465 |
|
Dividends on preferred stock |
|
|
— |
|
|
|
— |
|
|
|
6,104 |
|
|
|
6,104 |
|
|
|
— |
|
|
|
— |
|
|
|
5,980 |
|
|
|
5,980 |
|
Adjusted Distributable Earnings attributable to non-controlling interests |
|
|
280 |
|
|
|
2 |
|
|
|
211 |
|
|
|
493 |
|
|
|
2,661 |
|
|
|
(12 |
) |
|
|
318 |
|
|
|
2,967 |
|
Adjusted Distributable Earnings Attributable to Common Stockholders |
|
$ |
39,136 |
|
|
$ |
545 |
|
|
$ |
(20,776 |
) |
|
$ |
18,905 |
|
|
$ |
43,179 |
|
|
$ |
(2,998 |
) |
|
$ |
(17,663 |
) |
|
$ |
22,518 |
|
Adjusted Distributable Earnings Attributable to Common Stockholders, per share |
|
$ |
0.55 |
|
|
$ |
0.01 |
|
|
$ |
(0.29 |
) |
|
$ |
0.27 |
|
|
$ |
0.64 |
|
|
$ |
(0.05 |
) |
|
$ |
(0.26 |
) |
|
$ |
0.33 |
|
(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, 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 December 31, 2023, includes |
(5) |
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/20240226977077/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 was Ellington Financial Inc.'s net income for Q4 2023?
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When did Ellington Financial Inc. complete a merger with Arlington Asset Investment Corp.?
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What was the recourse debt-to-equity ratio for Ellington Financial Inc. as of December 31, 2023?
