OLD GREENWICH, Conn.–(BUSINESS WIRE)–Ellington Financial Inc. (NYSE: EFC) (“we,” “us,” or “our”) today reported financial results for the quarter ended June 30, 2024.
Highlights
- Net income attributable to common stockholders of $52.3 million, or $0.62 per common share.1
- $69.1 million, or $0.81 per common share, from the investment portfolio.
- $68.0 million, or $0.80 per common share, from the credit strategy.
- $1.1 million, or $0.01 per common share, from the Agency strategy.
- $4.2 million, or $0.05 per common share, from Longbridge.
- $69.1 million, or $0.81 per common share, from the investment portfolio.
- Adjusted Distributable Earnings2 of $28.3 million, or $0.33 per common share.
- Book value per common share as of June 30, 2024 of $13.92, including the effects of dividends of $0.39 per common share for the quarter.
- Dividend yield of 13.0% based on the August 5, 2024 closing stock price of $12.04 per share, and monthly dividend of $0.13 per common share declared on July 8, 2024.
- Recourse debt-to-equity ratio3 of 1.6:1 as of June 30, 2024, adjusted for unsettled purchases and sales. Including all non-recourse borrowings, which primarily consist of securitization-related liabilities, debt-to-equity ratio of 8.2:14.
- Cash and cash equivalents of $198.5 million as of June 30, 2024, in addition to other unencumbered assets of $565.1 million.
Second Quarter 2024 Results
“Driven by broad-based contributions from our diversified credit and Agency portfolios, as well as from our reverse mortgage platform Longbridge, Ellington Financial generated a non-annualized economic return of 4.5% for the second quarter, and grew adjusted distributable earnings and book value per share sequentially,” said Laurence Penn, Chief Executive Officer and President.
“We had notably strong performance in our non-QM loan business, where tight yield spreads in our April securitization helped generate a significant gain in our portfolio, and where continued strong loan demand improved industrywide gain-on-sale margins and origination volumes, driving excellent results at our affiliate loan originators. Longbridge also contributed robust earnings for the quarter, led by the strong performance of proprietary reverse mortgage loans. Following quarter end, we successfully completed our second securitization of proprietary reverse mortgage loans originated by Longbridge, achieving incrementally stronger execution than our inaugural deal in the first quarter. Our second quarter results also significantly benefited from the performance of our residential transition and commercial mortgage loan strategies, as well as non-Agency RMBS.
“During the quarter, we added attractive investments in a wide array of our credit strategies, including HELOCs and closed-end second lien loans, proprietary reverse mortgage loans, commercial mortgage bridge loans, re-performing and non-performing residential mortgage loans, CMBS, and CLOs. At the same time, we continued to cull securities in lower-yielding sectors, including Agency and non-Agency RMBS.
“Looking forward, our investment pipeline across our diversified proprietary loan origination channels remains strong, and the loan originators in which we’ve invested are not only helping to feed that pipeline, but they’re showing strong profitability as well. Combine that with our ability to access compelling term, non-mark-to-market financing in the securitization markets, and I believe Ellington Financial is well positioned for continued portfolio and earnings growth over the remainder of the year.”
Financial Results
Investment Portfolio Summary
Our investment portfolio generated net income attributable to common stockholders of $69.1 million, consisting of $68.0 million from the credit strategy and $1.1 million from the Agency strategy.
Credit Performance
Our total long credit portfolio, excluding non-retained tranches of consolidated securitization trusts, decreased to $2.73 billion as of June 30, 2024, from $2.80 billion as of March 31, 2024. The decline was driven by the cumulative impact of a non-QM securitization completed during the second quarter and net sales of non-Agency and retained non-QM RMBS, and non-QM loans, which more than offset net purchases of commercial mortgage bridge loans, home equity lines of credit, or “HELOCs,” closed-end second lien loans, re-performing and non-performing residential mortgage loans, CMBS, and CLOs.
Strong net interest income5 and net gains from non-QM loans, retained non-QM RMBS, non-Agency RMBS, and commercial mortgage loans drove the positive results in our credit strategy in the second quarter. We also benefited from mark-to-market gains on our equity investments in the loan originators LendSure and American Heritage Lending, which reflected strong performance at those originators driven by increased origination volumes and strong gain-on-sale margins. With interest rates slightly higher quarter over quarter, we also had net gains on our interest rate hedges. Offsetting a portion of all these gains was a modest net loss in re-performing and non-performing residential mortgage loans.
In our residential mortgage loan portfolio, after excluding the impacts of the purchase of one non-performing loan portfolio and the consolidation of another non-performing loan portfolio, our percentage of delinquent loans increased only slightly quarter over quarter. In our commercial mortgage loan portfolio (including loans accounted for as equity method investments) the delinquency percentage ticked down sequentially. Both of these portfolios continue to experience low levels of realized credit losses and strong overall credit performance, though we are monitoring developments closely and diligently working out a handful of non-performing commercial mortgage assets.
The net interest margin6 on our credit portfolio decreased quarter over quarter, to 2.76% from 2.86%. 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.
Agency Performance
Our total long Agency RMBS portfolio decreased by 31% quarter over quarter to $457.7 million, driven primarily by net sales.
In April, interest rates and volatility increased over renewed concerns about inflation and a more hawkish Federal Reserve, which pushed Agency RMBS yield spreads wider. In May and June, however, interest rates and volatility generally declined, and Agency RMBS yield spreads reversed most of their April widening. Overall for the second quarter, the U.S. Agency MBS Index generated a negative excess return of (0.08)%. Nevertheless, our Agency RMBS strategy generated positive results for the quarter, as net gains on interest rate hedges and net interest income exceeded net losses on Agency RMBS.
Average pay-ups on our specified pools increased modestly to 0.91% as of June 30, 2024, as compared to 0.89% as of March 31, 2024.
During the quarter, our Agency RMBS asset yields and our borrowing costs both declined, and we received a larger benefit from positive carry on our interest rate swap hedges, where we overall receive a higher floating rate and pay a lower fixed rate. As a result, the net interest margin6 on our Agency RMBS, excluding the Catch-up Amortization Adjustment, increased to 1.99% from 1.50% quarter over quarter.
Longbridge Summary
Our Longbridge segment generated net income attributable to common stockholders of $4.2 million for the second quarter, driven by net interest income and net gains on proprietary reverse mortgage loans, along with positive results from servicing. In HECM originations, higher volumes were mostly offset by a decline in gain-on-sale margins, driven by wider yield spreads on newly originated HMBS. In servicing, tighter yield spreads on more seasoned HMBS led to improved execution on tail securitizations, which contributed to the positive results from servicing.
Our Longbridge portfolio, excluding non-retained tranches of a consolidated securitization trust, increased by 18% sequentially to $520.8 million as of June 30, 2024, driven primarily by proprietary reverse mortgage loan originations.
Corporate/Other Summary
In addition to expenses not allocated to either the investment portfolio or Longbridge segments, our results for the quarter also reflect a net gain, driven by the increase in interest rates, on our senior notes. This gain was partially offset by a net loss, also 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.
1 Includes $(21.0) million of preferred dividends accrued and certain corporate/other income and expense items not attributed to either the investment portfolio or Longbridge segments.
2 Adjusted Distributable Earnings is a non-GAAP financial measure. See “Reconciliation of Net Income (Loss) to Adjusted Distributable Earnings” below for an explanation regarding the calculation of Adjusted Distributable Earnings.
3 Excludes U.S. Treasury securities and repo borrowings at certain unconsolidated entities that are recourse to us. Including such borrowings, our debt-to-equity ratio, adjusted for unsettled purchases and sales, based on total recourse borrowings was 1.9:1 as of June 30, 2024.
4 Excludes U.S. Treasury securities and repo borrowings at certain unconsolidated entities.
5 Excludes any interest income and interest expense items from interest rate hedges, net credit hedges and other activities, net.
6 Net interest margin represents the weighted average asset yield less the weighted average secured financing cost of funds on such assets. It also includes the effect of actual and accrued periodic payments on interest rate swaps used to hedge the assets.
Credit Portfolio(1)
The following table summarizes our credit portfolio holdings as of June 30, 2024 and March 31, 2024:
|
|
|
June 30, 2024 |
|
March 31, 2024 |
||||||||
|
($ in thousands) |
|
Fair Value |
|
% |
|
Fair Value |
|
% |
||||
|
Dollar denominated: |
|
|
|
|
|
|
|
|
||||
|
CLOs(2) |
|
$ |
75,719 |
|
1.8 |
% |
|
$ |
59,243 |
|
1.4 |
% |
|
CMBS |
|
|
42,842 |
|
1.0 |
% |
|
|
22,393 |
|
0.5 |
% |
|
Commercial mortgage loans and REO(3)(4) |
|
|
362,914 |
|
8.8 |
% |
|
|
366,320 |
|
8.7 |
% |
|
Consumer loans and ABS backed by consumer loans(2) |
|
|
85,802 |
|
2.1 |
% |
|
|
83,194 |
|
2.0 |
% |
|
Corporate debt and equity and corporate loans |
|
|
32,100 |
|
0.8 |
% |
|
|
31,140 |
|
0.8 |
% |
|
Debt and equity investments in loan origination-related entities(6) |
|
|
37,381 |
|
0.9 |
% |
|
|
35,967 |
|
0.9 |
% |
|
Forward MSR-related investments |
|
|
158,031 |
|
3.8 |
% |
|
|
160,009 |
|
3.8 |
% |
|
Home equity line of credit and closed-end second lien loans |
|
|
62,737 |
|
1.5 |
% |
|
|
— |
|
— |
% |
|
Non-Agency RMBS |
|
|
143,690 |
|
3.5 |
% |
|
|
210,132 |
|
5.0 |
% |
|
Non-QM loans and retained non-QM RMBS(7) |
|
|
1,802,847 |
|
43.5 |
% |
|
|
1,989,390 |
|
47.3 |
% |
|
Other loans and ABS(5) |
|
|
23,533 |
|
0.6 |
% |
|
|
19,674 |
|
0.5 |
% |
|
Residential transition loans and other residential mortgage loans and REO(3) |
|
|
1,234,796 |
|
29.8 |
% |
|
|
1,199,246 |
|
28.5 |
% |
|
Non-Dollar denominated: |
|
|
|
|
|
|
|
|
||||
|
CLOs(2) |
|
|
6,973 |
|
0.2 |
% |
|
|
5,496 |
|
0.1 |
% |
|
Corporate debt and equity |
|
|
219 |
|
— |
% |
|
|
185 |
|
— |
% |
|
RMBS(8) |
|
|
18,138 |
|
0.4 |
% |
|
|
20,423 |
|
0.5 |
% |
|
Other residential mortgage loans |
|
|
52,368 |
|
1.3 |
% |
|
|
— |
|
— |
% |
|
Total long credit portfolio |
|
$ |
4,140,090 |
|
100.0 |
% |
|
$ |
4,202,812 |
|
100.0 |
% |
|
Less: Non-retained tranches of consolidated securitization trusts |
|
|
1,414,389 |
|
|
|
|
1,407,035 |
|
|
||
|
Total long credit portfolio excluding non-retained tranches of consolidated securitization trusts |
|
$ |
2,725,701 |
|
|
|
$ |
2,795,777 |
|
|
||
|
(1) |
This information does not include U.S. Treasury securities, securities sold short, or financial derivatives. |
|
(2) |
Includes equity investments in securitization-related vehicles. |
|
(3) |
In accordance with U.S. GAAP, REO is not considered a financial instrument and as a result is included at the lower of cost or fair value. |
|
(4) |
Includes equity investments in unconsolidated entities holding commercial mortgage loans and REO. |
|
(5) |
Includes equity investment in an unconsolidated entity which held certain other loans for 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 June 30, 2024 and March 31, 2024:
|
|
|
June 30, 2024 |
|
March 31, 2024 |
||||||||
|
($ in thousands) |
|
Fair Value |
|
% |
|
Fair Value |
|
% |
||||
|
Long Agency RMBS: |
|
|
|
|
|
|
|
|
||||
|
Fixed rate |
|
$ |
413,686 |
|
90.4 |
% |
|
$ |
609,806 |
|
92.0 |
% |
|
Floating rate |
|
|
— |
|
— |
% |
|
|
5,043 |
|
0.8 |
% |
|
Reverse mortgages |
|
|
33,853 |
|
7.4 |
% |
|
|
36,912 |
|
5.6 |
% |
|
IOs |
|
|
10,162 |
|
2.2 |
% |
|
|
10,811 |
|
1.6 |
% |
|
Total long Agency RMBS |
|
$ |
457,701 |
|
100.0 |
% |
|
$ |
662,572 |
|
100.0 |
% |
| (1) |
This information does not include U.S. Treasury securities, securities sold short or financial derivatives. |
||
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 June 30, 2024 and March 31, 2024:
|
|
|
June 30, 2024 |
|
March 31, 2024 |
||||
|
|
|
(In thousands) |
||||||
|
HMBS assets(2) |
|
$ |
8,926,658 |
|
|
$ |
8,713,835 |
|
|
Less: HMBS liabilities |
|
|
(8,832,058 |
) |
|
|
(8,619,463 |
) |
|
HMBS MSR Equivalent |
|
|
94,600 |
|
|
|
94,372 |
|
|
Unsecuritized HECM loans(3) |
|
|
103,668 |
|
|
|
111,617 |
|
|
Proprietary reverse mortgage loans(4) |
|
|
449,968 |
|
|
|
365,372 |
|
|
Reverse MSRs |
|
|
29,538 |
|
|
|
29,889 |
|
|
Unsecuritized REO |
|
|
1,375 |
|
|
|
2,228 |
|
|
Total |
|
|
679,149 |
|
|
|
603,478 |
|
|
Less: Non-retained tranches of consolidated securitization trust |
|
|
158,397 |
|
|
|
162,482 |
|
|
Total, excluding non-retained tranches of consolidated securitization trust |
|
$ |
520,752 |
|
|
$ |
440,996 |
|
|
(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 June 30, 2024, includes $5.1 million of active HECM buyout loans, $9.9 million of inactive HECM buyout loans, and $4.3 million of other inactive HECM loans. As of March 31, 2024, includes $9.3 million of active HECM buyout loans, $9.4 million of inactive HECM buyout loans, and $4.5 million of other inactive HECM loans. |
|
(4) |
As of June 30, 2024, includes $181.1 million of securitized proprietary reverse mortgage loans and $4.5 million of cash held in a securitization reserve fund. As of March 31, 2024, includes $184.9 million of securitized proprietary reverse mortgage loans and $4.7 million of cash held in a securitization reserve fund. |
The following table summarizes Longbridge’s origination volumes by channel for the three-month periods ended June 30, 2024 and March 31, 2024:
|
($ In thousands) |
|
June 30, 2024 |
|
March 31, 2024 |
||||||||||||
|
Channel |
|
Units |
|
New Loan Origination Volume(1) |
|
% of New Loan Origination Volume |
|
Units |
|
New Loan Origination Volume(1) |
|
% of New Loan Origination Volume |
||||
|
Retail |
|
408 |
|
$ |
60,601 |
|
20 |
% |
|
381 |
|
$ |
51,639 |
|
25 |
% |
|
Wholesale and correspondent |
|
1,298 |
|
|
243,937 |
|
80 |
% |
|
983 |
|
|
153,246 |
|
75 |
% |
|
Total |
|
1,706 |
|
$ |
304,538 |
|
100 |
% |
|
1,364 |
|
$ |
204,885 |
|
100 |
% |
| (1) |
Represents initial borrowed amounts on reverse mortgage loans. |
Financing
Our recourse debt-to-equity ratio3, adjusted for unsettled purchases and sales, decreased to 1.6:1 at June 30, 2024 from 1.8:1 at March 31, 2024. The decline was primarily driven by the completion of a non-QM securitization in the second quarter, a decline in borrowings on our smaller Agency RMBS portfolio, and an increase in shareholders’ equity. Our overall debt-to-equity ratio4, adjusted for unsettled purchases and sales, also decreased during the quarter, to 8.2:1 as of June 30, 2024, as compared to 8.3:1 as of March 31, 2024.
The following table summarizes our outstanding borrowings and debt-to-equity ratios as of June 30, 2024 and March 31, 2024:
|
|
|
June 30, 2024 |
|
March 31, 2024 |
||||||
|
|
|
Outstanding Borrowings(1) |
|
Debt-to-Equity |
|
Outstanding Borrowings(1) |
|
Debt-to-Equity |
||
|
|
|
(In thousands) |
|
|
|
(In thousands) |
|
|
||
|
Recourse borrowings(3)(4) |
|
$ |
2,816,882 |
|
1.8:1 |
|
$ |
2,996,346 |
|
1.9:1 |
|
Non-recourse borrowings(4) |
|
|
10,417,896 |
|
6.6:1 |
|
|
10,188,612 |
|
6.6:1 |
|
Total Borrowings |
|
$ |
13,234,778 |
|
8.4:1 |
|
$ |
13,184,958 |
|
8.5:1 |
|
Total Equity |
|
$ |
1,573,859 |
|
|
|
$ |
1,553,156 |
|
|
|
Recourse borrowings excluding U.S. Treasury securities, adjusted for unsettled purchases and sales |
|
|
|
1.6:1 |
|
|
|
1.8:1 |
||
|
Total borrowings excluding U.S. Treasury securities, adjusted for unsettled purchases and sales |
|
|
|
8.2:1 |
|
|
|
8.3:1 |
||
|
(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 1.9:1 and 2.0:1 as of June 30, 2024 and March 31, 2024, 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 June 30, 2024:
|
|
|
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) |
|
$ |
81,983 |
|
|
$ |
6,858 |
|
|
$ |
88,841 |
|
|
$ |
13,592 |
|
|
$ |
1,915 |
|
|
$ |
104,348 |
|
|
$ |
1.22 |
|
|
Interest expense |
|
|
(43,531 |
) |
|
|
(6,207 |
) |
|
|
(49,738 |
) |
|
|
(8,754 |
) |
|
|
(4,631 |
) |
|
|
(63,123 |
) |
|
|
(0.74 |
) |
|
Realized gain (loss), net |
|
|
(11,208 |
) |
|
|
(14,200 |
) |
|
|
(25,408 |
) |
|
|
(24 |
) |
|
|
— |
|
|
|
(25,432 |
) |
|
|
(0.29 |
) |
|
Unrealized gain (loss), net |
|
|
30,143 |
|
|
|
9,140 |
|
|
|
39,283 |
|
|
|
3,683 |
|
|
|
1,868 |
|
|
|
44,834 |
|
|
|
0.52 |
|
|
Net change from reverse mortgage loans and HMBS obligations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
19,034 |
|
|
|
— |
|
|
|
19,034 |
|
|
|
0.22 |
|
|
Earnings in unconsolidated entities |
|
|
12,042 |
|
|
|
— |
|
|
|
12,042 |
|
|
|
— |
|
|
|
— |
|
|
|
12,042 |
|
|
|
0.14 |
|
|
Interest rate hedges and other activity, net(2) |
|
|
4,292 |
|
|
|
5,507 |
|
|
|
9,799 |
|
|
|
3,487 |
|
|
|
(1,759 |
) |
|
|
11,527 |
|
|
|
0.13 |
|
|
Credit hedges and other activities, net(3) |
|
|
(31 |
) |
|
|
— |
|
|
|
(31 |
) |
|
|
— |
|
|
|
— |
|
|
|
(31 |
) |
|
|
— |
|
|
Income tax (expense) benefit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(142 |
) |
|
|
(142 |
) |
|
|
— |
|
|
Investment related expenses |
|
|
(3,306 |
) |
|
|
— |
|
|
|
(3,306 |
) |
|
|
(7,781 |
) |
|
|
— |
|
|
|
(11,087 |
) |
|
|
(0.13 |
) |
|
Other expenses |
|
|
(2,006 |
) |
|
|
— |
|
|
|
(2,006 |
) |
|
|
(19,028 |
) |
|
|
(10,864 |
) |
|
|
(31,898 |
) |
|
|
(0.37 |
) |
|
Net income (loss) |
|
|
68,378 |
|
|
|
1,098 |
|
|
|
69,476 |
|
|
|
4,209 |
|
|
|
(13,613 |
) |
|
|
60,072 |
|
|
|
0.70 |
|
|
Dividends on preferred stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,825 |
) |
|
|
(6,825 |
) |
|
|
(0.08 |
) |
|
Net (income) loss attributable to non-participating non-controlling interests |
|
|
(382 |
) |
|
|
— |
|
|
|
(382 |
) |
|
|
— |
|
|
|
(4 |
) |
|
|
(386 |
) |
|
|
— |
|
|
Net income (loss) attributable to common stockholders and participating non-controlling interests |
|
|
67,996 |
|
|
|
1,098 |
|
|
|
69,094 |
|
|
|
4,209 |
|
|
|
(20,442 |
) |
|
|
52,861 |
|
|
|
0.62 |
|
|
Net (income) loss attributable to participating non-controlling interests |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(514 |
) |
|
|
(514 |
) |
|
|
— |
|
|
Net income (loss) attributable to common stockholders |
|
$ |
67,996 |
|
|
$ |
1,098 |
|
|
$ |
69,094 |
|
|
$ |
4,209 |
|
|
$ |
(20,956 |
) |
|
$ |
52,347 |
|
|
$ |
0.62 |
|
|
Net income (loss) attributable to common stockholders per share of common stock |
|
$ |
0.80 |
|
|
$ |
0.01 |
|
|
$ |
0.81 |
|
|
$ |
0.05 |
|
|
$ |
(0.24 |
) |
|
$ |
0.62 |
|
|
|
||
|
Weighted average shares of common stock and convertible units(4) outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
85,880 |
|
|
|
||||||||||||
|
Weighted average shares of common stock outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
85,045 |
|
|
|
||||||||||||
|
(1) Other income primarily consists of rental income on real estate owned, loan origination fees, and servicing income. |
||||||||||||||||||||||||||||
|
(2) Includes U.S. Treasury securities, if applicable. |
||||||||||||||||||||||||||||
|
(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 March 31, 2024:
|
|
|
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) |
|
$ |
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 U.S. Treasury securities, if applicable. |
||||||||||||||||||||||||||||
|
(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. |
||||||||||||||||||||||||||||
Contacts
Investors:
Ellington Financial
Investor Relations
(203) 409-3575
info@ellingtonfinancial.com
or
Media:
Amanda Shpiner/Grace Cartwright
Gasthalter & Co.
for Ellington Financial
(212) 257-4170
ellington@gasthalter.com
