Ellington Credit (EARN) Q1 2025 Earnings Call May 21, 2025 11:00 AM ET Company Participants Alaael-Deen Shilleh - Associate General Counsel & SecretaryLaurence Penn - CEO, President & DirectorChristopher Smernoff - Chief Financial OfficerGregory Borenstein - Portfolio ManagerEric Hagen - Managing DirectorCrispin Love - Director Operator all sites on hold, we appreciate your patience and ask that you please continue to stand by. Please standby, your program will begin momentarily. Good morning, ladies and ge ...

Financial Data and Key Metrics Changes - For calendar Q1, the company reported a net loss of $0.23 per share and adjusted distributable earnings of $0.26 per share [9] - The overall net interest margin increased by 20 basis points to 5.27, supported by a growing capital allocation to CLOs [9] - The economic return for the quarter was negative 3.2%, with book value per share at $6.08 [10][11] Business Line Data and Key Metrics Changes - The CLO portfolio increased by 46% to $250 million, while capital allocated to CLOs expanded to 81% from 72% at the end of the previous quarter [11] - The agency RMBS holdings decreased slightly to $504 million from $512 million at the end of the previous quarter [11] - The portfolio P&L by strategy showed a negative $0.24 per share from CLOs and a positive $0.08 from agency [10] Market Data and Key Metrics Changes - The market experienced strong performance in January and February, followed by turbulence in March due to fears of tariffs, slowing growth, and persistent inflation [7] - Credit spreads widened significantly in March, impacting CLO mezzanine debt and equity tranches, leading to meaningful price declines [7][8] - Recent tariff de-escalations have led to credit spreads and prices reversing course in May, recovering a significant portion of the declines [8] Company Strategy and Development Direction - The company successfully completed its conversion to a registered closed-end fund and changed its fiscal calendar to begin on April 1 [4][5] - The strategy focuses on increasing the CLO portfolio while maintaining liquidity and flexibility in response to market conditions [22][29] - The company plans to add corporate debt to its liability structure later this year, which should be accretive to net investment income [29] Management's Comments on Operating Environment and Future Outlook - Management noted that while there were mark-to-market losses in calendar Q1, most price declines were driven by credit spread widening rather than realized credit losses [22] - The company is optimistic about deploying capital in a compelling market and believes it is well-positioned to drive strong earnings moving forward [29] - Management expects to be slightly short on dividend coverage in the second quarter but is on track for recovery in the third quarter [56] Other Important Information - The company disposed of all remaining mortgage positions shortly after April 1, which allowed for increased liquidity and buying power [8][25] - As of April 30, approximately 18.8% of the total portfolio, or about $59 million, was in cash and cash equivalents, providing ample dry powder for deployment [27] Q&A Session Summary Question: How does the yield on newly acquired CLOs compare to the previous $250 million? - Management indicated that the weighted average yield varied from slightly wider to potentially hundreds of basis points back, depending on the type of assets purchased [34] Question: Is there still dry powder available for deployment? - Management confirmed that there is still good dry powder available and that cash reserves are maintained to allow for increased portfolio size [37][39] Question: What are the latest thoughts on the ADE trajectory? - Management stated that they might be slightly short on covering the dividend in the second quarter but are on track for recovery in the third quarter [56]

May 21, 2025 Earnings Conference Call Three-Month Period Ended March 31, 2025 Important Notice Forward-Looking Statements This presentation may contain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical in nature and can be identified by words such as "anticipate," "estimate," "will," "should," "may," "expect," "project," "believe," "intend," "seek," "plan" and similar expressions ...

Ellington Credit (EARN) came out with quarterly earnings of $0.26 per share, missing the Zacks Consensus Estimate of $0.27 per share. This compares to earnings of $0.27 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -3.70%. A quarter ago, it was expected that this residential mortgage real estate investment trust would post earnings of $0.26 per share when it actually produced earnings of $0.27, delivering a surprise of 3.85% ...

Exhibit 99.1 Ellington Credit Company Reports Results for Three-Month Period Ended March 31, 2025 OLD GREENWICH, Connecticut—May 20, 2025—Ellington Credit Company (NYSE: EARN) ("we") today reported financial results for the three-month period ended March 31, 2025. Highlights Conversion Update On April 1, 2025, we completed our conversion to a Delaware-domiciled closed-end fund focused on corporate collateralized loan obligations ("CLOs"), registered under the Investment Company Act of 1940 ("1940 Act"), whi ...

Group 1 - Ellington Credit Company has changed its mandate from a REIT (Real Estate Investment Trust) to a RIC (Registered Investment Company) [1] - The new focus of Ellington Credit Company is on investment strategies that align with the RIC structure [1]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-35896 Ellington Credit Company (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of Incorporation or Organizat ...

Company Overview - Ellington Credit Company (NYSE: EARN) has transitioned from operating as a mortgage REIT, primarily focusing on agency mortgage-backed securities, to a new strategic direction [1] Strategic Change - The company has undergone a strategic change, indicating a shift in its operational focus and investment strategy [1] Research Principles - Grassroots Trading emphasizes providing objective, unbiased, and balanced research, supported by solid data and devoid of emotional influences [1] - The focus is on small- to mid-cap companies, while also identifying potential opportunities in large- and mega-cap companies to offer comprehensive coverage of the equity markets [1]

Financial Data and Key Metrics Changes - The company reported a net loss of $0.07 per share for Q4 2024, with adjusted distributable earnings of $0.27 per share, covering dividends of $0.24 for the quarter [23][21] - The overall net interest margin remained strong at 5.07%, supported by a growing capital allocation to CLOs [23] - The debt-to-equity ratio adjusted for unsettled trades increased to 2.9 times from 2.5 times at September 30, while the net mortgage assets-to-equity ratio decreased to 2.6 times from 3 times [27] Business Line Data and Key Metrics Changes - The CLO portfolio grew by 18% to $171 million at year-end, with capital allocated to CLOs expanding to 72% from 58% at September 30 [28] - The CLO mezzanine debt portfolio continued to perform well, contributing to adjusted distributable earnings, while the Agency strategy generated a net loss due to rising interest rates and volatility [20][24] - The Agency RMBS holdings increased by 11% to $512 million at year-end [28] Market Data and Key Metrics Changes - Strong credit fundamentals and robust demand for leveraged loans supported the CLO markets, with credit spreads tightening [17] - The percentage of loans backing U.S. broadly syndicated CLOs trading at a premium declined from 63% at the end of January to 32% at the end of February [35] - European CLO equity outperformed U.S. CLO equity in Q4, benefiting from less capital markets activity and tighter credit spreads [36] Company Strategy and Development Direction - The company is on track to complete its conversion to a closed-end fund on April 1, which is expected to enhance risk-adjusted returns and access to capital markets [9][51] - The focus has shifted towards liquidity in the Agency pool position, with an emphasis on selling pools post-conversion [16][46] - The company plans to balance a swift ramp-up of CLO investments with careful asset selection, aiming for a fully ramped CLO portfolio around mid-year [50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the timing of the conversion, anticipating good entry points for deploying capital in the second quarter [57] - There are concerns about potential longer-term stresses on corporate borrowers, but management expects to find opportunities in equity as market conditions evolve [37][39] - Recent market volatility has created a dynamic trading environment, presenting opportunities for CLO investments [38] Other Important Information - The company has significantly derisked its Agency MBS portfolio by increasing short TBA hedging positions, which now offset almost all long pool exposure [43] - The average pay-up on Agency pools decreased to 20 basis points from 101 basis points one year prior [16] Q&A Session Summary Question: How much capital will be freed up on April 1 when selling the Agency portfolio? - Management indicated that approximately 28% of the portfolio not in CLOs would be freed up, which is expected to be well-timed given current market volatility [54][56] Question: How have different parts of the CLO market reacted to recent volatility? - Management noted that AAA tranches have moved back about 0.50%, while equity generally saw declines, with performance varying by manager [60] Question: What is the expected leverage range once fully invested in CLOs? - Management suggested a reasonable estimate for leverage would be half the churn, indicating a potential for $150 million worth of CLOs for every $100 million of common equity [88]

Ellington Credit Company (NYSE:EARN) Q4 2024 Earnings Conference Call March 13, 2025 11:00 AM ET Company Participants Alaael-Deen Shilleh - Associate General Counsel and Secretary Laurence E. Penn - Chief Executive Officer and President Mark Tecotzky - Co-Chief Investment Officer Christopher Smernoff - Chief Financial Officer Gregory Borenstein - Head of Corporate Credit at Ellington Management Group Conference Call Participants Douglas Harter - UBS Matthew Erdner - JonesTrading Operator Good morning, ladie ...