OLD GREENWICH, Conn.–(BUSINESS WIRE)–Ellington Financial Inc. (NYSE: EFC) (“we”) today reported financial results for the quarter ended December 31, 2025.
Highlights
-
Net income attributable to common stockholders of $14.7 million, or $0.14 per common share.1
-
$42.2 million, or $0.39 per common share, from the investment portfolio.
- $38.1 million, or $0.35 per common share, from the credit strategy.
- $4.1 million, or $0.04 per common share, from the Agency strategy.
- $16.4 million, or $0.15 per common share, from Longbridge.
-
$42.2 million, or $0.39 per common share, from the investment portfolio.
-
Adjusted Distributable Earnings of $51.4 million, or $0.47 per common share.2
- $66.4 million, or $0.61 per common share, from the investment portfolio.
- $14.6 million, or $0.13 per common share, from Longbridge.
- Book value per common share as of December 31, 2025 of $13.16, including the effects of dividends of $0.39 per common share for the quarter.
-
Recourse debt-to-equity ratio3 of 1.9:1 as of December 31, 2025. Including all recourse and non-recourse borrowings, which primarily consist of securitization-related liabilities, debt-to-equity ratio of 9.0:13.
- Increased long-term, non-mark-to-market financing through completion of seven securitizations and closing of $400 million of Moody’s- and Fitch-rated senior unsecured notes.
- Cash and cash equivalents of $201.9 million as of December 31, 2025, in addition to other unencumbered assets of $1.57 billion.
Fourth Quarter 2025 Results
“Ellington Financial reported another quarter of positive results, driven by our loan origination and securitization businesses, and supported by strengthening credit performance across our diversified loan portfolios,” said Laurence Penn, Chief Executive Officer and President. “Once again, our adjusted distributable earnings substantially exceeded our dividends, with particularly strong contributions from our Longbridge segment.
“On October 6th, we closed a $400 million unsecured notes offering—our largest such offering to date. During the quarter, we continued to fortify our balance sheet by utilizing a portion of the proceeds from that offering to replace short-term repo financing, while maintaining a robust and consistent pace of securitization activity. This activity was highlighted by the completion of our inaugural securitization of residential transition loans and, subsequent to year end, our first securitization of Agency-eligible loans. As a result of these actions, our balance sheet metrics strengthened meaningfully. The proportion of total recourse borrowings represented by long-term, non-mark-to-market borrowings almost doubled quarter over quarter, while unencumbered assets expanded by more than $500 million, collectively demonstrating the enhanced strength and flexibility of our balance sheet.
“We also took advantage of the notes offering to actively deploy capital into new investments, expanding our portfolio by 9% even after the impact of securitizations.4 Our portfolio continues to benefit from strong origination and acquisition activity across non-QM loans, Agency-eligible loans, closed-end second lien loans, proprietary reverse mortgage loans, and commercial mortgage bridge loans. By year end, we had largely deployed the proceeds from the notes offering.
“As we move into 2026, we remain focused on maintaining strong credit performance and disciplined portfolio growth, while increasing market share in loan originations and scaling our securitization platform. We also continue to optimize our capital structure and balance sheet. Following year-end, we raised common equity on an accretive basis with a highly targeted use of proceeds, namely retiring our highest-cost preferred equity. We will monitor the preferred equity market with an eye toward potentially refinancing that capital at a lower cost. Meanwhile, moving to the debt side of our balance sheet, we expect over time to continue to increase the share of unsecured, non-mark-to-market, and long-term financings. We believe that all these actions will drive an increasingly resilient earnings and dividend stream for shareholders.”
Financial Results
Investment Portfolio Segment
The investment portfolio segment generated net income of $43.0 million in the fourth quarter, consisting of $38.9 million from the credit strategy and $4.1 million from the Agency strategy.
Credit
The total adjusted long credit portfolio5 increased by 15% to $4.11 billion as of December 31, 2025, compared to $3.56 billion as of September 30, 2025. The increase was driven by net purchases of non-QM loans, Agency-eligible loans, closed-end second lien loans, commercial mortgage bridge loans, ABS, and CLOs; and a larger portfolio of retained RMBS. These increases were partially offset by the impact of loans sold into securitizations.
Key Highlights6:
- Overall positive performance driven by higher net interest income in the credit portfolio, and net realized and unrealized gains on non-QM retained tranches and forward-MSR related investments.
- Partially offsetting higher net interest income were net realized and unrealized losses on non-QM loans, commercial mortgage bridge loans, closed-end second lien loans and related retained tranches, CLOs, CMBS, ABS, and residential REO.
- Strong credit performance across our loan businesses, including sequentially lower 90-day delinquency rates and continued low life-to-date realized credit losses in both our residential and commercial loan portfolios.
- Strong results from equity investments in loan originators.
During the quarter, the net interest margin7 on our credit portfolio decreased to 3.37% from 3.65%, with lower asset yields more than offsetting a slightly lower cost of funds. Asset yields declined primarily due to a higher proportion of loans held in warehouses pending securitization; this larger warehouse portfolio was the result of the deployment of the proceeds from the notes offering. 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
The long Agency RMBS portfolio decreased slightly quarter over quarter to $218.4 million as of December 31, 2025, compared to $220.7 million as of September 30, 2025.
Key Highlights6:
- Strong results driven by net interest income, net gains on Agency RMBS and net gains on interest rate hedges. Declining interest rate volatility and tightening Agency yield spreads were supportive of our portfolio.
- Pay-ups on our specified pools decreased to 0.79% as of December 31, 2025, from 0.81% as of September 30, 2025.
The net interest margin7 on our Agency portfolio (excluding the Catch-up Amortization Adjustment) decreased to 2.18% as of December 31, 2025, from 2.27% as of September 30, 2025, driven by a decrease in asset yields. 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.
Longbridge Segment
The Longbridge segment reported net income of $16.4 million for the fourth quarter. The Longbridge portfolio (excluding non-retained tranches of consolidated securitization trusts) decreased by 18% sequentially to $617.2 million as of December 31, 2025, as continued strong proprietary reverse mortgage loan origination volume was more than offset by the completion of two securitizations.
Key Highlights6:
- Positive contribution from originations, supported by sequentially higher overall origination volumes, continued strong origination margins, and net gains related to the proprietary reverse mortgage loan securitizations completed during the quarter.
- Strong positive contribution from servicing, reflecting strong tail securitization executions, a net gain on the HMBS MSR Equivalent, driven primarily by improved profits from tail securitizations, along with steady base servicing net income.
- Net gains on interest rate hedges.
Corporate/Other Summary
Results also reflect: (i) an increase in the unrealized loss on our unsecured debt, driven by credit spread tightening during the quarter, (ii) debt issuance costs related to our October unsecured notes offering, which were fully expensed at issuance, and (iii) higher corporate-level interest expense due to a larger amount of unsecured notes outstanding.
| _________________________ | |
|
1 |
Represents $58.5 million of aggregate net income from the investment portfolio and Longbridge segments, less $43.9 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. Represents $81.1 million of aggregate Adjusted Distributable Earnings from the investment portfolio and Longbridge segments, less $29.7 million of certain corporate/other items not attributed to either the investment portfolio or Longbridge segments. |
|
3 |
Excludes borrowings collateralized by U.S. Treasury securities. |
|
4 |
Excludes U.S. Treasury securities and non-retained tranches of consolidated securitization trusts. |
|
5 |
Excludes non-retained tranches of consolidated securitization trusts. |
|
6 |
Sector-level results include associated financing costs and hedging gains/losses where applicable. |
|
7 |
Net interest margin represents the weighted average asset yield less the weighted average secured financing cost of funds on such assets. It also includes the effect of actual and accrued periodic payments on interest rate swaps used to hedge the assets. |
Credit Portfolio(1)
The following table summarizes our credit portfolio holdings as of December 31, 2025 and September 30, 2025:
|
|
|
December 31, 2025 |
|
September 30, 2025 |
||||||||
|
($ in thousands) |
|
Fair Value |
|
% |
|
Fair Value |
|
% |
||||
|
Dollar denominated: |
|
|
|
|
|
|
|
|
||||
|
Agency-eligible residential mortgage loans(2) |
|
$ |
243,615 |
|
4.4 |
% |
|
$ |
89,239 |
|
1.8 |
% |
|
CLOs |
|
|
111,808 |
|
2.0 |
% |
|
|
72,456 |
|
1.5 |
% |
|
CMBS |
|
|
26,550 |
|
0.5 |
% |
|
|
31,115 |
|
0.6 |
% |
|
Commercial mortgage loans(3)(5) |
|
|
765,059 |
|
13.8 |
% |
|
|
661,271 |
|
13.7 |
% |
|
Consumer loans and ABS backed by consumer loans(6) |
|
|
143,648 |
|
2.6 |
% |
|
|
97,346 |
|
2.0 |
% |
|
Corporate debt and equity and corporate loans |
|
|
29,147 |
|
0.5 |
% |
|
|
26,444 |
|
0.5 |
% |
|
Debt and equity investments in loan origination-related entities(7) |
|
|
95,688 |
|
1.7 |
% |
|
|
84,229 |
|
1.7 |
% |
|
Forward MSR-related investments |
|
|
77,852 |
|
1.4 |
% |
|
|
74,694 |
|
1.5 |
% |
|
Home equity line of credit and closed-end second lien loans and retained RMBS(6)(8) |
|
|
364,838 |
|
6.6 |
% |
|
|
313,548 |
|
6.5 |
% |
|
Non-Agency RMBS |
|
|
95,240 |
|
1.7 |
% |
|
|
90,383 |
|
1.9 |
% |
|
Non-QM loans and retained RMBS(3)(6)(8) |
|
|
2,624,068 |
|
47.4 |
% |
|
|
2,372,070 |
|
49.0 |
% |
|
Other investments(9)(10) |
|
|
70,466 |
|
1.3 |
% |
|
|
60,840 |
|
1.3 |
% |
|
Residential transition loans and other residential mortgage loans(2)(3)(4) |
|
|
839,456 |
|
15.1 |
% |
|
|
816,158 |
|
16.9 |
% |
|
Non-Dollar denominated: |
|
|
|
|
|
|
|
|
||||
|
CLOs |
|
|
13,232 |
|
0.2 |
% |
|
|
9,969 |
|
0.2 |
% |
|
Corporate debt and equity |
|
|
— |
|
— |
% |
|
|
186 |
|
— |
% |
|
RMBS(11)(12) |
|
|
16,953 |
|
0.3 |
% |
|
|
13,626 |
|
0.3 |
% |
|
Other residential mortgage loans |
|
|
27,536 |
|
0.5 |
% |
|
|
29,761 |
|
0.6 |
% |
|
Total long credit portfolio |
|
$ |
5,545,156 |
|
100.0 |
% |
|
$ |
4,843,335 |
|
100.0 |
% |
|
Adjustments: |
|
|
|
|
|
|
|
|
||||
|
Less: Non-retained tranches of consolidated securitization trusts |
|
|
1,433,814 |
|
|
|
|
1,281,857 |
|
|
||
|
Total adjusted long credit portfolio |
|
$ |
4,111,342 |
|
|
|
$ |
3,561,479 |
|
|
||
|
(1) |
This information does not include U.S. Treasury securities, securities sold short, or financial derivatives. |
|
|
(2) |
Conformed to current period presentation. |
|
|
(3) |
Includes related REO. 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) |
Other residential mortgage loans include secondary market purchases of non-performing and re-performing mortgage loans. |
|
|
(5) |
Includes equity investments in unconsolidated entities holding commercial mortgage loans and REO and corporate loans secured by commercial mortgage loans. |
|
|
(6) |
Includes equity investments in securitization-related vehicles. |
|
|
(7) |
Includes corporate loans made to certain loan origination entities in which we hold an equity investment. |
|
|
(8) |
Retained RMBS represents RMBS issued by non-consolidated Ellington-sponsored loan securitization trusts, and interests in entities holding such RMBS. |
|
|
(9) |
Includes equity investment in Ellington affiliate. |
|
|
(10) |
Includes equity investment in an unconsolidated entity which purchases certain other loans for eventual securitization. |
|
|
(11) |
Includes loan to an entity which purchases residential mortgage loans for eventual securitization. |
|
|
(12) |
Includes equity investment in an unconsolidated entity holding European RMBS. |
Agency RMBS Portfolio
The following table(1) summarizes our Agency RMBS portfolio holdings as of December 31, 2025 and September 30, 2025:
|
|
|
December 31, 2025 |
|
September 30, 2025 |
||||||||
|
($ in thousands) |
|
Fair Value |
|
% |
|
Fair Value |
|
% |
||||
|
Long Agency RMBS: |
|
|
|
|
|
|
|
|
||||
|
Fixed rate |
|
$ |
203,077 |
|
93.0 |
% |
|
$ |
207,161 |
|
93.9 |
% |
|
Reverse mortgages |
|
|
556 |
|
0.3 |
% |
|
|
915 |
|
0.4 |
% |
|
IOs |
|
|
14,734 |
|
6.7 |
% |
|
|
12,667 |
|
5.7 |
% |
|
Total long Agency RMBS |
|
$ |
218,367 |
|
100.0 |
% |
|
$ |
220,743 |
|
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 (i) home equity conversion mortgage loans, or “HECMs,” which are insured by the FHA, and (ii) “proprietary reverse mortgage loans,” which are not insured by the FHA. HECMs are eligible for inclusion in GNMA-guaranteed HECM-backed MBS, or “HMBS.” Upon securitization, the HECMs remain on our balance sheet under GAAP. 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. Longbridge has typically retained the MSRs associated with the loans it has originated. Longbridge also originates home equity lines of credit, or “HELOCs,” designed for homeowners aged 62 or older.
The following table summarizes loan-related assets(1) in the Longbridge segment as of December 31, 2025 and September 30, 2025:
|
|
|
December 31, 2025 |
|
September 30, 2025 |
||||
|
|
|
(In thousands) |
||||||
|
HMBS assets(2) |
|
$ |
10,524,652 |
|
|
$ |
10,232,166 |
|
|
Less: HMBS liabilities |
|
|
(10,406,332 |
) |
|
|
(10,117,649 |
) |
|
HMBS MSR Equivalent |
|
|
118,320 |
|
|
|
114,517 |
|
|
Unsecuritized HECM loans(3) |
|
|
174,046 |
|
|
|
143,165 |
|
|
Proprietary reverse mortgage loans(4)(5) |
|
|
1,687,801 |
|
|
|
1,387,511 |
|
|
Reverse MSRs |
|
|
28,913 |
|
|
|
29,055 |
|
|
Unsecuritized REO(5) |
|
|
4,742 |
|
|
|
3,596 |
|
|
Total |
|
|
2,013,822 |
|
|
|
1,677,844 |
|
|
Less: Non-retained tranches of consolidated securitization trusts |
|
|
1,396,607 |
|
|
|
927,852 |
|
|
Total, excluding non-retained tranches of consolidated securitization trusts |
|
$ |
617,215 |
|
|
$ |
749,992 |
|
|
(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, 2025, includes $28.5 million of active HECM buyout loans, $19.0 million of inactive HECM buyout loans, and $6.1 million of other inactive HECM loans. As of September 30, 2025, includes $19.6 million of active HECM buyout loans, $17.3 million of inactive HECM buyout loans, and $5.7 million of other inactive HECM loans. |
|
|
(4) |
As of December 31, 2025, includes $1.4 billion of securitized proprietary reverse mortgage loans and related REO, $26.0 million of cash held in a securitization reserve fund, and $19.9 million of investment related receivables. As of September 30, 2025, includes $953.2 million of securitized proprietary reverse mortgage loans, $19.2 million of cash held in a securitization reserve fund, and $6.6 million of investment related receivables. |
|
|
(5) |
In accordance with U.S. GAAP, REO is not considered a financial instrument and as a result is included at the lower of cost or fair value. |
The following table summarizes Longbridge’s origination volumes by channel for the three-month periods ended December 31, 2025 and September 30, 2025:
|
($ In thousands) |
|
December 31, 2025 |
|
September 30, 2025 |
||||||||||||
|
Channel |
|
Units |
|
New Loan Origination Volume(1) |
|
% of New Loan Origination Volume |
|
Units |
|
New Loan Origination Volume(1) |
|
% of New Loan Origination Volume |
||||
|
Wholesale and correspondent |
|
1,668 |
|
$ |
382,613 |
|
72 |
% |
|
1,485 |
|
$ |
354,121 |
|
71 |
% |
|
Retail |
|
824 |
|
|
147,119 |
|
28 |
% |
|
739 |
|
|
144,456 |
|
29 |
% |
|
Total |
|
2,492 |
|
$ |
529,732 |
|
100 |
% |
|
2,224 |
|
$ |
498,577 |
|
100 |
% |
|
(1) |
Represents initial borrowed amounts on reverse mortgage loans. |
Financing
Key Highlights:
- Recourse Debt-to-Equity Ratio: 1.9:1 as of December 31, 2025, compared to 1:8.1 as of September 30, 2025. We issued $400 million of unsecured notes during the quarter, a portion of which replaced repo borrowings; however, the overall ratio increased slightly as the remaining proceeds from that offering, along with incremental borrowings, funded new investments, outweighing the combined impact of repo paydowns, securitizations, and higher total equity.
- Overall Debt-to-Equity Ratio: 9.0:1 and 8.6:1 as of December 31, 2025 and September 30, 2025, respectively.
The following table summarizes our outstanding borrowings and debt-to-equity ratios as of December 31, 2025 and September 30, 2025:
|
|
|
December 31, 2025 |
|
September 30, 2025 |
||||||
|
|
|
Outstanding Borrowings(1) |
|
Debt-to-Equity Ratio(2) |
|
Outstanding Borrowings(1) |
|
Debt-to-Equity Ratio(2) |
||
|
|
|
(In thousands) |
|
|
|
(In thousands) |
|
|
||
|
Recourse borrowings(3) |
|
$ |
3,614,592 |
|
1.9:1 |
|
$ |
3,252,917 |
|
1.8:1 |
|
Non-recourse borrowings(3) |
|
|
13,351,910 |
|
7.1:1 |
|
|
12,331,643 |
|
6.9:1 |
|
Total Borrowings |
|
$ |
16,966,502 |
|
9.1:1 |
|
$ |
15,584,560 |
|
8.7:1 |
|
Total Equity |
|
$ |
1,871,155 |
|
|
|
$ |
1,795,820 |
|
|
|
Recourse borrowings excluding borrowings collateralized by U.S. Treasury securities, adjusted for unsettled purchases and sales |
|
|
|
1.9:1 |
|
|
|
1.8:1 |
||
|
Total borrowings excluding borrowings collateralized by U.S. Treasury securities, adjusted for unsettled purchases and sales |
|
|
|
9.0:1 |
|
|
|
8.6:1 |
||
|
(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) |
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). |
Operating Results
The following table summarizes our operating results by strategy for the three-month period ended December 31, 2025:
|
|
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) |
$ |
99,886 |
|
|
$ |
2,462 |
|
|
$ |
102,348 |
|
|
$ |
42,510 |
|
|
$ |
1,795 |
|
|
$ |
146,653 |
|
|
$ |
1.34 |
|
|
|
Interest expense |
|
(46,514 |
) |
|
|
(1,436 |
) |
|
|
(47,950 |
) |
|
|
(24,371 |
) |
|
|
(10,983 |
) |
|
|
(83,304 |
) |
|
|
(0.76 |
) |
|
|
Realized gain (loss), net |
|
2,291 |
|
|
|
(29 |
) |
|
|
2,262 |
|
|
|
60 |
|
|
|
— |
|
|
|
2,322 |
|
|
|
0.02 |
|
|
|
Unrealized gain (loss), net |
|
(19,319 |
) |
|
|
1,769 |
|
|
|
(17,550 |
) |
|
|
8,927 |
|
|
|
(7,905 |
) |
|
|
(16,528 |
) |
|
|
(0.15 |
) |
|
|
Net change from reverse mortgage loans and HMBS obligations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
31,900 |
|
|
|
— |
|
|
|
31,900 |
|
|
|
0.29 |
|
|
|
Earnings in unconsolidated entities |
|
18,203 |
|
|
|
— |
|
|
|
18,203 |
|
|
|
— |
|
|
|
— |
|
|
|
18,203 |
|
|
|
0.17 |
|
|
|
Interest rate hedges and other activity, net(2) |
|
(402 |
) |
|
|
1,339 |
|
|
|
937 |
|
|
|
1,767 |
|
|
|
(661 |
) |
|
|
2,043 |
|
|
|
0.02 |
|
|
|
Credit hedges and other activities, net(3) |
|
(4,413 |
) |
|
|
— |
|
|
|
(4,413 |
) |
|
|
(435 |
) |
|
|
— |
|
|
|
(4,848 |
) |
|
|
(0.05 |
) |
|
|
Income tax (expense) benefit |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,353 |
) |
|
|
(1,353 |
) |
|
|
(0.01 |
) |
|
|
Investment and transaction related expenses |
|
(8,213 |
) |
|
|
— |
|
|
|
(8,213 |
) |
|
|
(16,506 |
) |
|
|
(5,962 |
) |
|
|
(30,681 |
) |
|
|
(0.28 |
) |
|
|
Other expenses |
|
(2,663 |
) |
|
|
— |
|
|
|
(2,663 |
) |
|
|
(27,491 |
) |
|
|
(11,639 |
) |
|
|
(41,793 |
) |
|
|
(0.38 |
) |
|
|
Net income (loss) |
|
38,856 |
|
|
|
4,105 |
|
|
|
42,961 |
|
|
|
16,361 |
|
|
|
(36,708 |
) |
|
|
22,614 |
|
|
|
0.21 |
|
|
|
Dividends on preferred stock |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,981 |
) |
|
|
(6,981 |
) |
|
|
(0.06 |
) |
|
|
Net (income) loss attributable to non-participating non-controlling interests |
|
(805 |
) |
|
|
— |
|
|
|
(805 |
) |
|
|
— |
|
|
|
(4 |
) |
|
|
(809 |
) |
|
|
(0.01 |
) |
|
|
Net income (loss) attributable to common stockholders and participating non-controlling interests |
|
38,051 |
|
|
|
4,105 |
|
|
|
42,156 |
|
|
|
16,361 |
|
|
|
(43,693 |
) |
|
|
14,824 |
|
|
|
0.14 |
|
|
|
Net (income) loss attributable to participating non-controlling interests |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(157 |
) |
|
|
(157 |
) |
|
|
— |
|
|
|
Net income (loss) attributable to common stockholders |
$ |
38,051 |
|
|
$ |
4,105 |
|
|
$ |
42,156 |
|
|
$ |
16,361 |
|
|
$ |
(43,850 |
) |
|
$ |
14,667 |
|
|
$ |
0.14 |
|
|
|
Net income (loss) attributable to common stockholders per share of common stock |
$ |
0.35 |
|
|
$ |
0.04 |
|
|
$ |
0.39 |
|
|
$ |
0.15 |
|
|
$ |
(0.40 |
) |
|
$ |
0.14 |
|
|
|
|||
|
Weighted average shares of common stock and convertible units(4) outstanding |
|
|
|
|
|
|
|
|
|
|
|
109,652 |
|
|
|
|||||||||||||
|
Weighted average shares of common stock outstanding |
|
|
|
|
|
|
|
|
|
|
|
108,491 |
|
|
|
|||||||||||||
|
(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 September 30, 2025:
|
|
|
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) |
|
$ |
88,204 |
|
|
$ |
2,872 |
|
|
$ |
91,076 |
|
|
$ |
35,981 |
|
|
$ |
1,589 |
|
|
$ |
128,646 |
|
|
$ |
1.25 |
|
|
Interest expense |
|
|
(43,443 |
) |
|
|
(1,963 |
) |
|
|
(45,406 |
) |
|
|
(20,403 |
) |
|
|
(3,965 |
) |
|
|
(69,774 |
) |
|
|
(0.68 |
) |
|
Realized gain (loss), net |
|
|
8,486 |
|
|
|
(158 |
) |
|
|
8,328 |
|
|
|
220 |
|
|
|
— |
|
|
|
8,548 |
|
|
|
0.08 |
|
|
Unrealized gain (loss), net |
|
|
(8,629 |
) |
|
|
3,012 |
|
|
|
(5,617 |
) |
|
|
246 |
|
|
|
(2,890 |
) |
|
|
(8,261 |
) |
|
|
(0.08 |
) |
|
Net change from reverse mortgage loans and HMBS obligations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
34,954 |
|
|
|
— |
|
|
|
34,954 |
|
|
|
0.34 |
|
|
Earnings in unconsolidated entities |
|
|
13,074 |
|
|
|
— |
|
|
|
13,074 |
|
|
|
— |
|
|
|
— |
|
|
|
13,074 |
|
|
|
0.13 |
|
|
Interest rate hedges and other activity, net(2) |
|
|
(222 |
) |
|
|
706 |
|
|
|
484 |
|
|
|
(3,409 |
) |
|
|
(452 |
) |
|
|
(3,377 |
) |
|
|
(0.03 |
) |
|
Credit hedges and other activities, net(3) |
|
|
(6,737 |
) |
|
|
— |
|
|
|
(6,737 |
) |
|
|
(1,243 |
) |
|
|
— |
|
|
|
(7,980 |
) |
|
|
(0.08 |
) |
|
Income tax (expense) benefit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,060 |
) |
|
|
(1,060 |
) |
|
|
(0.01 |
) |
|
Investment and transaction related expenses |
|
|
(5,677 |
) |
|
|
— |
|
|
|
(5,677 |
) |
|
|
(12,136 |
) |
|
|
— |
|
|
|
(17,813 |
) |
|
|
(0.17 |
) |
|
Other expenses |
|
|
(1,828 |
) |
|
|
— |
|
|
|
(1,828 |
) |
|
|
(25,586 |
) |
|
|
(11,785 |
) |
|
|
(39,199 |
) |
|
|
(0.38 |
) |
|
Net income (loss) |
|
|
43,228 |
|
|
|
4,469 |
|
|
|
47,697 |
|
|
|
8,624 |
|
|
|
(18,563 |
) |
|
|
37,758 |
|
|
|
0.37 |
|
|
Dividends on preferred stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(7,074 |
) |
|
|
(7,074 |
) |
|
|
(0.07 |
) |
|
Net (income) loss attributable to non-participating non-controlling interests |
|
|
(846 |
) |
|
|
— |
|
|
|
(846 |
) |
|
|
— |
|
|
|
(4 |
) |
|
|
(850 |
) |
|
|
(0.01 |
) |
|
Net income (loss) attributable to common stockholders and participating non-controlling interests |
|
|
42,382 |
|
|
|
4,469 |
|
|
|
46,851 |
|
|
|
8,624 |
|
|
|
(25,641 |
) |
|
|
29,834 |
|
|
|
0.29 |
|
|
Net (income) loss attributable to participating non-controlling interests |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(330 |
) |
|
|
(330 |
) |
|
|
— |
|
|
Net income (loss) attributable to common stockholders |
|
$ |
42,382 |
|
|
$ |
4,469 |
|
|
$ |
46,851 |
|
|
$ |
8,624 |
|
|
$ |
(25,971 |
) |
|
$ |
29,504 |
|
|
$ |
0.29 |
|
|
Net income (loss) attributable to common stockholders per share of common stock |
|
$ |
0.42 |
|
|
$ |
0.04 |
|
|
$ |
0.46 |
|
|
$ |
0.09 |
|
|
$ |
(0.26 |
) |
|
$ |
0.29 |
|
|
|
||
|
Weighted average shares of common stock and convertible units(4) outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
102,726 |
|
|
|
||||||||||||
|
Weighted average shares of common stock outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
101,589 |
|
|
|
||||||||||||
Contacts
Investors:
Ellington Financial
Investor Relations
(203) 409-3575
[email protected]
or
Media:
Amanda Shpiner/Grace Cartwright
Gasthalter & Co.
for Ellington Financial
(212) 257-4170
[email protected]
