OLD GREENWICH, Conn.–(BUSINESS WIRE)–Ellington Financial Inc. (NYSE: EFC) (“we”) today reported financial results for the quarter ended June 30, 2025.
Highlights
-
Net income attributable to common stockholders of $42.9 million, or $0.45 per common share.1
-
$56.8 million, or $0.60 per common share, from the investment portfolio.
- $57.8 million, or $0.61 per common share, from the credit strategy.
- $(1.0) million, or $(0.01) per common share, from the Agency strategy.
- $10.7 million, or $0.11 per common share, from Longbridge.
-
$56.8 million, or $0.60 per common share, from the investment portfolio.
-
Adjusted Distributable Earnings of $45.0 million, or $0.47 per common share.2
- $53.8 million, or $0.56 per common share, from the investment portfolio.
- $12.8 million, or $0.13 per common share, from Longbridge.
- Book value per common share as of June 30, 2025 of $13.49, including the effects of dividends of $0.39 per common share for the quarter.
- Dividend yield of 12.3% based on the August 6, 2025 closing stock price of $12.72 per share, and monthly dividend of $0.13 per common share declared on August 7, 2025.
- Recourse debt-to-equity ratio3 of 1.7:1 as of June 30, 2025. Including all recourse and non-recourse borrowings, which primarily consist of securitization-related liabilities, debt-to-equity ratio of 8.7:14.
- Cash and cash equivalents of $211.0 million as of June 30, 2025, in addition to other unencumbered assets of $708.8 million.
Second Quarter 2025 Results
“Ellington Financial delivered a strong second quarter, with broad-based contributions from our diversified investment portfolio and loan origination platforms. We generated net income of $0.45 per share, equating to an annualized economic return of 13.8% for the quarter, with book value per share increasing quarter over quarter to $13.49. Meanwhile, our adjusted distributable earnings per share increased sharply by $0.08 to $0.47, significantly exceeding our $0.39 of dividends,” said Laurence Penn, Chief Executive Officer and President.
“Our securitization momentum remains strong, as we completed six transactions during the quarter. The size of our investment portfolio was roughly unchanged sequentially, as opportunistic purchases particularly during the April selloff and growth in certain loan portfolios were offset by the impact of securitizations, tactical sales, and steady principal repayments from our short-term loan portfolios.
“Looking ahead, I believe we are well positioned to continue delivering strong earnings through ongoing portfolio expansion, a faster pace of securitizations—including four priced so far in the third quarter—and continued strong contributions from Longbridge. Longbridge generated a robust $0.13 per share of ADE in the second quarter, and its ADE contributions should be further supported by the recent launch of its HELOC For Seniors program. We are also committed to further strengthening our liability structure, not only through additional securitizations but also by strategically increasing unsecured borrowings over time.”
Financial Results
Investment Portfolio Segment
The investment portfolio segment generated net income of $57.4 million in the second quarter, consisting of $58.4 million from the credit strategy and $(1.0) million from the Agency strategy.
Credit Performance
The total adjusted long credit portfolio5 increased by 1% to $3.32 billion as of June 30, 2025, compared to $3.30 billion as of March 31, 2025. Our portfolios of commercial mortgage bridge loans, non-QM loans, and non-Agency RMBS all expanded, driven by net purchases. These increases were largely offset by the impact of securitizations, tactical sales of home equity line of credit (“HELOC”) and non-QM loans, and a smaller residential transition loan portfolio, with principal paydowns in that portfolio exceeding new purchases.
Key Highlights6:
- Overall positive performance driven by higher net interest income and net realized and unrealized gains from non-QM loans and retained tranches, closed-end second lien loans and retained tranches, and other loans and ABS.
- Positive results from equity investments in loan originators.
- Partially offsetting higher net interest income were net unrealized losses on forward MSR-related investments, as well as losses on commercial and residential REO.
During the quarter, the net interest margin7 on our credit portfolio increased to 3.11% from 2.90%, driven primarily by a lower cost of funds. 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
The long Agency RMBS portfolio increased by 5% quarter over quarter to $268.5 million as of June 30, 2025, compared to $256.1 million as of March 31, 2025, driven by net purchases.
Key Highlights6:
- Agency RMBS yield spreads widened in early April, driven in part by increased volatility due to tariff-related uncertainty. Yield spreads reversed course in May and June, tightening meaningfully, but still ended the quarter wider overall.
- Net losses on interest rate hedges drove the overall loss for the quarter.
- Pay-ups on our specified pools increased slightly to 0.71% as of June 30, 2025, from 0.69% as of March 31, 2025.
The net interest margin7 on our Agency portfolio (excluding the Catch-up Amortization Adjustment) decreased to 2.29% as of June 30, 2025 from 2.46% as of March 31, 2025, driven primarily by a higher cost of funds.
Longbridge Segment
The Longbridge segment reported net income of $10.7 million for the second quarter. The Longbridge portfolio (excluding non-retained tranches of consolidated securitization trusts) decreased by 1% sequentially to $545.6 million as of June 30, 2025, as the impact of a securitization of proprietary reverse mortgage loans completed during the quarter slightly exceeded the impact of new originations in that sector.
Key Highlights6:
- Positive contribution from originations, driven by higher origination volumes in both HECM and proprietary reverse loans, steady origination margins for both products, and net gains related to the proprietary reverse mortgage loan securitization.
- Positive contribution from servicing, including MSR-related income, strong tail securitization executions, and a net gain on the HMBS MSR Equivalent, driven primarily by tighter HMBS yield spreads.
- Net losses on interest rate hedges.
Corporate/Other Summary
Results for the quarter also reflect a decrease in incentive fees incurred partially offset by net unrealized loss on our unsecured borrowings and an increase in income tax expense.
| ____________________________________ |
1 Represents $67.6 million of aggregate net income from the investment portfolio and Longbridge segments, less $24.6 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 $66.6 million of aggregate Adjusted Distributable Earnings from the investment portfolio and Longbridge segments, less $21.6 million of certain corporate/other items not attributed to either the investment portfolio or Longbridge segments.
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, 2025.
4 Excludes U.S. Treasury securities and repo borrowings at certain unconsolidated entities.
5 Excludes non-retained tranches of consolidated securitization trusts. The adjusted long credit portfolio also includes the proceeds from financings related to the MSRs underlying our Forward MSR-related investments. Forward MSR-related investments, at fair value are presented on our Consolidated Balance Sheet net of such financings; as of both June 30, 2025 and March 31, 2025, such borrowings were $93.5 million.
6 Sector-level results include associated financing costs and hedging gains/losses where applicable.
7 Net interest margin represents the weighted average asset yield less the weighted average secured financing cost of funds on such assets. It also includes the effect of actual and accrued periodic payments on interest rate swaps used to hedge the assets.
Credit Portfolio(1)
The following table summarizes our credit portfolio holdings as of June 30, 2025 and March 31, 2025:
|
|
|
June 30, 2025 |
|
March 31, 2025(2) |
||||||||
|
($ in thousands) |
|
Fair Value |
|
% |
|
Fair Value |
|
% |
||||
|
Dollar denominated: |
|
|
|
|
|
|
|
|
||||
|
CLOs |
|
$ |
37,168 |
|
0.8 |
% |
|
$ |
27,958 |
|
0.6 |
% |
|
CMBS |
|
|
35,328 |
|
0.8 |
% |
|
|
36,545 |
|
0.8 |
% |
|
Commercial mortgage loans(3)(4) |
|
|
582,085 |
|
12.8 |
% |
|
|
505,459 |
|
11.1 |
% |
|
Consumer loans and ABS backed by consumer loans(5) |
|
|
89,984 |
|
2.0 |
% |
|
|
87,172 |
|
1.9 |
% |
|
Corporate debt and equity and corporate loans |
|
|
24,189 |
|
0.5 |
% |
|
|
24,915 |
|
0.5 |
% |
|
Debt and equity investments in loan origination-related entities(6) |
|
|
73,842 |
|
1.6 |
% |
|
|
59,791 |
|
1.3 |
% |
|
Forward MSR-related investments |
|
|
81,256 |
|
1.8 |
% |
|
|
87,203 |
|
1.9 |
% |
|
Home equity line of credit and closed-end second lien loans and retained RMBS(5)(7) |
|
|
322,721 |
|
7.1 |
% |
|
|
423,109 |
|
9.3 |
% |
|
Non-Agency RMBS |
|
|
112,949 |
|
2.5 |
% |
|
|
101,187 |
|
2.2 |
% |
|
Non-QM loans and retained RMBS(3)(5)(7) |
|
|
2,186,350 |
|
48.1 |
% |
|
|
2,067,841 |
|
45.6 |
% |
|
Other investments(8)(9) |
|
|
57,326 |
|
1.3 |
% |
|
|
58,134 |
|
1.3 |
% |
|
Residential transition loans and other residential mortgage loans(3) |
|
|
877,421 |
|
19.3 |
% |
|
|
1,002,344 |
|
22.1 |
% |
|
Non-Dollar denominated: |
|
|
|
|
|
|
|
|
||||
|
CLOs |
|
|
6,993 |
|
0.2 |
% |
|
|
6,558 |
|
0.2 |
% |
|
Corporate debt and equity |
|
|
207 |
|
— |
% |
|
|
190 |
|
— |
% |
|
RMBS(10) |
|
|
14,138 |
|
0.3 |
% |
|
|
13,271 |
|
0.3 |
% |
|
Other residential mortgage loans |
|
|
38,725 |
|
0.9 |
% |
|
|
38,364 |
|
0.9 |
% |
|
Total long credit portfolio |
|
$ |
4,540,682 |
|
100.0 |
% |
|
$ |
4,540,040 |
|
100.0 |
% |
|
Adjustments: |
|
|
|
|
|
|
|
|
||||
|
Less: Non-retained tranches of consolidated securitization trusts |
|
|
1,319,037 |
|
|
|
|
1,337,020 |
|
|
||
|
Plus: Financing underlying Forward MSR-related investments(11) |
|
|
93,500 |
|
|
|
|
93,500 |
|
|
||
|
Total adjusted long credit portfolio |
|
$ |
3,315,145 |
|
|
|
$ |
3,296,520 |
|
|
||
|
(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) |
Also includes equity investments in unconsolidated entities holding commercial mortgage loans and REO and corporate loans secured by commercial mortgage loans. |
|
(5) |
Also includes equity investments in securitization-related vehicles. |
|
(6) |
Also includes corporate loans made to certain loan origination entities in which we hold an equity investment. |
|
(7) |
Retained RMBS represents RMBS issued by non-consolidated Ellington-sponsored loan securitization trusts, and interests in entities holding such RMBS. |
|
(8) |
Also includes equity investment in Ellington affiliate. |
|
(9) |
Includes equity investment in an unconsolidated entity which purchases certain other loans for eventual securitization. |
|
(10) |
Includes an equity investment in an unconsolidated entity holding European RMBS. |
|
(11) |
We participate in the economic returns of a portfolio of forward MSRs under various agreements with a licensed mortgage servicer holding such MSRs. Under such agreements, we can direct the servicer to finance the MSRs and distribute the proceeds of such financings to us. Forward MSR-related investments, at fair value are presented on our Consolidated Balance sheet net of any such financings; as of both June 30, 2025 and March 31, 2025, such borrowings were $93.5 million. |
Agency RMBS Portfolio
The following table(1) summarizes our Agency RMBS portfolio holdings as of June 30, 2025 and March 31, 2025:
|
|
|
June 30, 2025 |
|
March 31, 2025 |
||||||||
|
($ in thousands) |
|
Fair Value |
|
% |
|
Fair Value |
|
% |
||||
|
Long Agency RMBS: |
|
|
|
|
|
|
|
|
||||
|
Fixed rate |
|
$ |
254,461 |
|
94.8 |
% |
|
$ |
241,580 |
|
94.3 |
% |
|
Reverse mortgages |
|
|
1,159 |
|
0.4 |
% |
|
|
1,499 |
|
0.6 |
% |
|
IOs |
|
|
12,887 |
|
4.8 |
% |
|
|
13,016 |
|
5.1 |
% |
|
Total long Agency RMBS |
|
$ |
268,507 |
|
100.0 |
% |
|
$ |
256,095 |
|
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 summarizes loan-related assets(1) in the Longbridge segment as of June 30, 2025 and March 31, 2025:
|
|
|
June 30, 2025 |
|
March 31, 2025 |
||||
|
|
|
(In thousands) |
||||||
|
HMBS assets(2) |
|
$ |
9,920,301 |
|
|
$ |
9,597,451 |
|
|
Less: HMBS liabilities |
|
|
(9,814,811 |
) |
|
|
(9,495,132 |
) |
|
HMBS MSR Equivalent |
|
|
105,490 |
|
|
|
102,319 |
|
|
Unsecuritized HECM loans(3) |
|
|
128,802 |
|
|
|
131,883 |
|
|
Proprietary reverse mortgage loans(4) |
|
|
1,085,125 |
|
|
|
866,425 |
|
|
Reverse MSRs |
|
|
29,276 |
|
|
|
29,536 |
|
|
Unsecuritized REO |
|
|
1,962 |
|
|
|
2,489 |
|
|
Total |
|
|
1,350,655 |
|
|
|
1,132,652 |
|
|
Less: Non-retained tranches of consolidated securitization trusts |
|
|
805,046 |
|
|
|
583,686 |
|
|
Total, excluding non-retained tranches of consolidated securitization trusts |
|
$ |
545,609 |
|
|
$ |
548,966 |
|
|
(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, 2025, includes $11.9 million of active HECM buyout loans, $17.7 million of inactive HECM buyout loans, and $5.3 million of other inactive HECM loans. As of March 31, 2025, includes $14.0 million of active HECM buyout loans, $14.1 million of inactive HECM buyout loans, and $5.2 million of other inactive HECM loans. |
|
(4) |
As of June 30, 2025, includes $828.4 million of securitized proprietary reverse mortgage loans, $18.0 million of cash held in a securitization reserve fund, and $7.5 million of investment related receivables. As of March 31, 2025, includes $615.3 million of securitized proprietary reverse mortgage loans and $12.4 million of cash held in a securitization reserve fund. |
The following table summarizes Longbridge’s origination volumes by channel for the three-month periods ended June 30, 2025 and March 31, 2025:
|
($ In thousands) |
|
June 30, 2025 |
|
March 31, 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 |
|
1,374 |
|
$ |
308,354 |
|
72 |
% |
|
1,267 |
|
$ |
241,675 |
|
71 |
% |
|
Retail |
|
687 |
|
|
118,708 |
|
28 |
% |
|
554 |
|
|
96,776 |
|
29 |
% |
|
Total |
|
2,061 |
|
$ |
427,062 |
|
100 |
% |
|
1,821 |
|
$ |
338,451 |
|
100 |
% |
|
(1) |
Represents initial borrowed amounts on reverse mortgage loans. |
Financing
Key Highlights:
- Recourse Debt-to-Equity Ratio3 (adjusted for unsettled trades): 1.7:1 as of both June 30, 2025 and March 31, 2025.
- Overall Debt-to-Equity Ratio4 (adjusted for unsettled trades): 8.7:1 as of both June 30, 2025 and March 31, 2025.
The following table summarizes our outstanding borrowings and debt-to-equity ratios as of June 30, 2025 and March 31, 2025:
|
|
|
June 30, 2025 |
|
March 31, 2025 |
||||||
|
|
|
Outstanding Borrowings(1) |
|
Debt-to-Equity Ratio(2) |
|
Outstanding Borrowings(1) |
|
Debt-to-Equity Ratio(2) |
||
|
|
|
(In thousands) |
|
|
|
(In thousands) |
|
|
||
|
Recourse borrowings(3)(4) |
|
$ |
2,950,497 |
|
1.7:1 |
|
$ |
3,099,550 |
|
1.9:1 |
|
Non-recourse borrowings(4) |
|
|
11,942,036 |
|
7.0:1 |
|
|
11,421,843 |
|
7.0:1 |
|
Total Borrowings |
|
$ |
14,892,533 |
|
8.8:1 |
|
$ |
14,521,393 |
|
8.9:1 |
|
Total Equity |
|
$ |
1,689,510 |
|
|
|
$ |
1,637,616 |
|
|
|
Recourse borrowings excluding U.S. Treasury securities, adjusted for unsettled purchases and sales |
|
|
|
1.7:1 |
|
|
|
1.7:1 |
||
|
Total borrowings excluding U.S. Treasury securities, adjusted for unsettled purchases and sales |
|
|
|
8.7:1 |
|
|
|
8.7:1 |
||
|
(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 as of both June 30, 2025 and March 31, 2025. |
|
(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). |
Operating Results
The following table summarizes our operating results by strategy for the three-month period ended June 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) |
$ |
87,096 |
|
|
$ |
2,840 |
|
|
$ |
89,936 |
|
|
$ |
28,842 |
|
|
$ |
1,668 |
|
|
$ |
120,446 |
|
|
$ |
1.24 |
|
|
Interest expense |
|
(44,486 |
) |
|
|
(2,243 |
) |
|
|
(46,729 |
) |
|
|
(16,687 |
) |
|
|
(3,971 |
) |
|
|
(67,387 |
) |
|
|
(0.69 |
) |
|
Realized gain (loss), net |
|
9,038 |
|
|
|
(423 |
) |
|
|
8,615 |
|
|
|
41 |
|
|
|
— |
|
|
|
8,656 |
|
|
|
0.09 |
|
|
Unrealized gain (loss), net |
|
14,993 |
|
|
|
1,801 |
|
|
|
16,794 |
|
|
|
14,197 |
|
|
|
(1,699 |
) |
|
|
29,292 |
|
|
|
0.30 |
|
|
Net change from reverse mortgage loans and HMBS obligations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
26,605 |
|
|
|
— |
|
|
|
26,605 |
|
|
|
0.28 |
|
|
Earnings in unconsolidated entities |
|
17,072 |
|
|
|
— |
|
|
|
17,072 |
|
|
|
— |
|
|
|
— |
|
|
|
17,072 |
|
|
|
0.18 |
|
|
Interest rate hedges and other activity, net(2) |
|
(912 |
) |
|
|
(2,974 |
) |
|
|
(3,886 |
) |
|
|
(2,506 |
) |
|
|
(127 |
) |
|
|
(6,519 |
) |
|
|
(0.07 |
) |
|
Credit hedges and other activities, net(3) |
|
(16,863 |
) |
|
|
— |
|
|
|
(16,863 |
) |
|
|
(1,688 |
) |
|
|
— |
|
|
|
(18,551 |
) |
|
|
(0.19 |
) |
|
Income tax (expense) benefit |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,475 |
) |
|
|
(1,475 |
) |
|
|
(0.02 |
) |
|
Investment related expenses |
|
(5,468 |
) |
|
|
— |
|
|
|
(5,468 |
) |
|
|
(13,179 |
) |
|
|
— |
|
|
|
(18,647 |
) |
|
|
(0.19 |
) |
|
Other expenses |
|
(2,038 |
) |
|
|
— |
|
|
|
(2,038 |
) |
|
|
(24,944 |
) |
|
|
(11,437 |
) |
|
|
(38,419 |
) |
|
|
(0.40 |
) |
|
Net income (loss) |
|
58,432 |
|
|
|
(999 |
) |
|
|
57,433 |
|
|
|
10,681 |
|
|
|
(17,041 |
) |
|
|
51,073 |
|
|
|
0.53 |
|
|
Dividends on preferred stock |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(7,036 |
) |
|
|
(7,036 |
) |
|
|
(0.07 |
) |
|
Net (income) loss attributable to non-participating non-controlling interests |
|
(602 |
) |
|
|
— |
|
|
|
(602 |
) |
|
|
— |
|
|
|
(5 |
) |
|
|
(607 |
) |
|
|
(0.01 |
) |
|
Net income (loss) attributable to common stockholders and participating non-controlling interests |
|
57,830 |
|
|
|
(999 |
) |
|
|
56,831 |
|
|
|
10,681 |
|
|
|
(24,082 |
) |
|
|
43,430 |
|
|
|
0.45 |
|
|
Net (income) loss attributable to participating non-controlling interests |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(507 |
) |
|
|
(507 |
) |
|
|
— |
|
|
Net income (loss) attributable to common stockholders |
$ |
57,830 |
|
|
$ |
(999 |
) |
|
$ |
56,831 |
|
|
$ |
10,681 |
|
|
$ |
(24,589 |
) |
|
$ |
42,923 |
|
|
$ |
0.45 |
|
|
Net income (loss) attributable to common stockholders per share of common stock |
$ |
0.61 |
|
|
$ |
(0.01 |
) |
|
$ |
0.60 |
|
|
$ |
0.11 |
|
|
$ |
(0.26 |
) |
|
$ |
0.45 |
|
|
|
||
|
Weighted average shares of common stock and convertible units(4) outstanding |
|
|
|
|
|
|
|
|
|
|
|
96,995 |
|
|
|
||||||||||||
|
Weighted average shares of common stock outstanding |
|
|
|
|
|
|
|
|
|
|
|
95,862 |
|
|
|
||||||||||||
|
(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, 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) |
|
$ |
87,077 |
|
|
$ |
4,140 |
|
|
$ |
91,217 |
|
|
$ |
23,056 |
|
|
$ |
1,714 |
|
|
$ |
115,987 |
|
|
$ |
1.25 |
|
|
Interest expense |
|
|
(46,503 |
) |
|
|
(2,498 |
) |
|
|
(49,001 |
) |
|
|
(13,745 |
) |
|
|
(4,481 |
) |
|
|
(67,227 |
) |
|
|
(0.73 |
) |
|
Realized gain (loss), net |
|
|
(12,421 |
) |
|
|
(1,190 |
) |
|
|
(13,611 |
) |
|
|
— |
|
|
|
(1,383 |
) |
|
|
(14,994 |
) |
|
|
(0.16 |
) |
|
Unrealized gain (loss), net |
|
|
24,059 |
|
|
|
5,673 |
|
|
|
29,732 |
|
|
|
4,408 |
|
|
|
1,027 |
|
|
|
35,167 |
|
|
|
0.38 |
|
|
Net change from reverse mortgage loans and HMBS obligations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
29,519 |
|
|
|
— |
|
|
|
29,519 |
|
|
|
0.32 |
|
|
Earnings in unconsolidated entities |
|
|
8,304 |
|
|
|
— |
|
|
|
8,304 |
|
|
|
— |
|
|
|
— |
|
|
|
8,304 |
|
|
|
0.09 |
|
|
Interest rate hedges and other activity, net(2) |
|
|
(5,917 |
) |
|
|
(1,908 |
) |
|
|
(7,825 |
) |
|
|
(12,273 |
) |
|
|
1,284 |
|
|
|
(18,814 |
) |
|
|
(0.20 |
) |
|
Credit hedges and other activities, net(3) |
|
|
3,616 |
|
|
|
— |
|
|
|
3,616 |
|
|
|
(394 |
) |
|
|
— |
|
|
|
3,222 |
|
|
|
0.03 |
|
|
Income tax (expense) benefit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
96 |
|
|
|
96 |
|
|
|
— |
|
|
Investment related expenses |
|
|
(2,770 |
) |
|
|
— |
|
|
|
(2,770 |
) |
|
|
(10,810 |
) |
|
|
— |
|
|
|
(13,580 |
) |
|
|
(0.14 |
) |
|
Other expenses |
|
|
(2,259 |
) |
|
|
— |
|
|
|
(2,259 |
) |
|
|
(20,756 |
) |
|
|
(15,341 |
) |
|
|
(38,356 |
) |
|
|
(0.41 |
) |
|
Net income (loss) |
|
|
53,186 |
|
|
|
4,217 |
|
|
|
57,403 |
|
|
|
(995 |
) |
|
|
(17,084 |
) |
|
|
39,324 |
|
|
|
0.43 |
|
|
Dividends on preferred stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(7,035 |
) |
|
|
(7,035 |
) |
|
|
(0.08 |
) |
|
Net (income) loss attributable to non-participating non-controlling interests |
|
|
(316 |
) |
|
|
— |
|
|
|
(316 |
) |
|
|
— |
|
|
|
(3 |
) |
|
|
(319 |
) |
|
|
— |
|
|
Net income (loss) attributable to common stockholders and participating non-controlling interests |
|
|
52,870 |
|
|
|
4,217 |
|
|
|
57,087 |
|
|
|
(995 |
) |
|
|
(24,122 |
) |
|
|
31,970 |
|
|
|
0.35 |
|
|
Net (income) loss attributable to participating non-controlling interests |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(321 |
) |
|
|
(321 |
) |
|
|
— |
|
|
Net income (loss) attributable to common stockholders |
|
$ |
52,870 |
|
|
$ |
4,217 |
|
|
$ |
57,087 |
|
|
$ |
(995 |
) |
|
$ |
(24,443 |
) |
|
$ |
31,649 |
|
|
$ |
0.35 |
|
|
Net income (loss) attributable to common stockholders per share of common stock |
|
$ |
0.58 |
|
|
$ |
0.05 |
|
|
$ |
0.63 |
|
|
$ |
(0.01 |
) |
|
$ |
(0.27 |
) |
|
$ |
0.35 |
|
|
|
||
|
Weighted average shares of common stock and convertible units(4) outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
92,529 |
|
|
|
||||||||||||
|
Weighted average shares of common stock outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
91,601 |
|
|
|
||||||||||||
|
(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. |
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.
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]
