Earnings Conference Call February 28, 2025 Q4 2024 Q4 2024 EARNINGS Important Notice Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve numerous risks and uncertainties. Our actual results may differ from our beliefs, expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as pred ...

Financial Performance - Net income attributable to common stockholders was $22.4 million, or $0.25 per common share, with $25.3 million from the investment portfolio[6] - Net income attributable to common stockholders was $29,343 thousand for the three-month period ended December 31, 2024, compared to a loss of $4,006 thousand for the previous period, indicating a substantial turnaround[28] - Net income for the three-month period ended December 31, 2024, was $25,664,000, compared to $44,115,000 for the period ended September 30, 2024, representing a decrease of 41.8%[50] - Net income attributable to common stockholders for the three-month period was $22,392,000, compared to $16,175,000 in the previous quarter, reflecting a 38.5% increase[39] Earnings and Dividends - Adjusted distributable earnings increased by $0.05 per share sequentially to $0.45, covering the quarterly dividend of $0.39 per share[3] - Total adjusted distributable earnings for the three-month period ended December 31, 2024, were $47,444,000, compared to $47,398,000 for the previous period, showing a slight increase of 0.1%[50] - Adjusted distributable earnings attributable to common stockholders were $46,938,000 for the three-month period ended December 31, 2024, down from $47,193,000 in the prior period, a decrease of 0.5%[50] - Dividend yield was 11.7% based on the closing stock price of $13.33 per share on February 26, 2025[6] Asset and Liability Management - Total assets as of December 31, 2024, reached $16,317,028,000, up from $15,953,290,000 as of September 30, 2024, marking a 2.3% increase[41] - Total liabilities as of December 31, 2024, were $14,726,206,000, up from $14,327,641,000, indicating a 2.8% increase[41] - Total equity decreased to $1,590,822 thousand as of December 31, 2024, from $1,625,649 thousand on September 30, 2024, a decline of about 2.1%[24] - Cash and cash equivalents totaled $192.4 million as of December 31, 2024, alongside unencumbered assets of $619.8 million[6] Loan and Portfolio Growth - Closed-end second/HELOC mortgage, proprietary reverse mortgage, and commercial mortgage loan portfolios grew by 39% during the quarter, excluding securitization impacts[4] - New loan origination volume for the three-month period ended December 31, 2024, was $419,904 thousand, a significant increase from $354,740 thousand for the period ended September 30, 2024, marking a growth of approximately 18.4%[23] - Proprietary reverse mortgage loans increased to $728,959 thousand as of December 31, 2024, up from $597,093 thousand on September 30, 2024, representing a growth of approximately 22%[21] - Unsecuritized HECM loans rose to $140,709 thousand as of December 31, 2024, compared to $127,625 thousand on September 30, 2024, reflecting an increase of approximately 10.3%[21] Interest Income and Expenses - Net interest income for the three-month period ended December 31, 2024, was $38,130,000, an increase from $33,627,000 for the previous quarter, representing a 14.9% growth[39] - Interest expense totaled $68,846,000, resulting in a per share expense of $0.78[31] - The company reported interest income and other income of $108,014 thousand for the three-month period ended December 31, 2024, compared to $86,106 thousand for the previous period, an increase of about 25.5%[28] Debt Management - Recourse debt-to-equity ratio was 1.8:1 as of December 31, 2024, with an overall debt-to-equity ratio of 8.8:1 including all borrowings[6] - The overall debt-to-equity ratio increased to 8.9:1 from 8.5:1 during the quarter, indicating a rise in borrowings from consolidated proprietary reverse mortgage loan securitizations[27] - Total borrowings rose to $14,220,213 thousand as of December 31, 2024, compared to $13,828,974 thousand on September 30, 2024, reflecting an increase of about 2.8%[24] Market Performance - The long Agency RMBS portfolio decreased by 25% quarter over quarter to $296.7 million, primarily due to net sales[9] - The company reported a net unrealized gain of $54,783,000, contributing $0.62 per share[31] - The company reported realized losses of $11,876,000 for the three-month period ended December 31, 2024, compared to realized gains of $63,515,000 in the prior period[50] Conference and Future Outlook - The company will host a conference call on February 28, 2025, to discuss financial results for the quarter ended December 31, 2024[35]

I believe in fundamental analysis and disciplined market research. I have strong quant background with a Ph.D. (Chemical Engineering, University of California, Santa Barbara) in model predictive control and an MBA (Jones School of Business, Rice University). My primary focus is to identify 1) small cap companies with strong fundamentals and growth potential, 2) large cap companies going through temporary set-backs, and 3) stable companies with solid dividend yields and growth potential.Analyst’s Disclosure: ...

Ownership and Acquisitions - As of September 30, 2024, Ellington Financial Inc. had an ownership interest of approximately 99.3% in its Operating Partnership[454]. - The company completed the acquisition of a controlling interest in Longbridge Financial, LLC on October 3, 2022, and a merger with Arlington Asset Investment Corp. on December 14, 2023[457]. Investment Portfolio - The investment portfolio includes a diverse array of financial assets such as residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), and collateralized loan obligations (CLOs)[458]. - Agency RMBS assets primarily consist of whole pool and partial pool pass-through certificates, guaranteed by U.S. government agencies[464]. - The company focuses on maintaining its qualification as a REIT and its exclusion from registration under the Investment Company Act[452]. - The U.S. consumer loan portfolio includes unsecured loans and secured auto loans, with ongoing purchases of newly originated and seasoned consumer loans[473]. - The company has consolidated Longbridge, which acquires reverse mortgage loans and pools them into HMBS, retaining servicing rights[486]. - The company actively participates in the market for residential non-performing loans (NPLs) and re-performing loans (RPLs), focusing on less-competitively bid mixed legacy pools[483]. Investment Strategies - The company employs strategies to capitalize on market opportunities, adjusting asset allocations based on credit and liquidity trends[460]. - The investment strategy includes opportunistic hedging of credit risk, interest rate risk, and foreign currency risk, depending on market conditions[460]. - The company aims to generate attractive, risk-adjusted total returns for stockholders through an opportunistic investment strategy[453]. Financial Performance - Net income attributable to common stockholders for the three-month period ended September 30, 2024, was $16.2 million, up from $6.6 million for the same period in 2023, driven by increases in total other income and net interest income[582]. - Interest income for the three-month period ended September 30, 2024, was $107.3 million, compared to $96.2 million for the same period in 2023, reflecting higher coupon payments and accrued interest[583]. - The company reported total other income of $135.4 million for the nine-month period ended September 30, 2024, with realized and unrealized gains on securities and loans contributing $120.3 million[619]. - Net income attributable to common stockholders for the nine-month period ended September 30, 2024, was $95.4 million, with a net income per common share of $1.12[619]. Borrowings and Debt Management - As of September 30, 2024, total outstanding borrowings under repos and other secured borrowings amounted to $4.7 billion, with approximately 7.3% or $346.2 million related to Agency RMBS holdings[542]. - The total recourse borrowings increased to $3.22 billion as of September 30, 2024, compared to $2.82 billion as of June 30, 2024[543]. - The overall debt-to-equity ratio based on total recourse and non-recourse borrowings, excluding U.S. Treasury securities, increased to 8.3:1 as of September 30, 2024, compared to 8.2:1 as of June 30, 2024[546]. - Unsecured borrowings totaled $297.7 million as of September 30, 2024, with senior notes maturing in April 2027 bearing an interest rate of 5.875%[541]. Interest Rates and Economic Indicators - The U.S. Federal Reserve reduced the federal funds rate by 50 basis points to a range of 4.75%–5.00% in September, marking the first rate cut in four years[501]. - The yield on the 2-year U.S. Treasury decreased by 111 basis points to 3.64%, while the 10-year U.S. Treasury yield declined by 62 basis points to 3.78% in the third quarter[502]. - The Freddie Mac survey 30-year mortgage rate decreased from 6.86% at the end of June to 6.08% on September 26th[502]. Asset Valuation and Performance Metrics - The total long credit portfolio, excluding non-retained tranches of consolidated securitization trusts, increased by 19% to $3.25 billion as of September 30, 2024, from $2.73 billion as of June 30, 2024[505]. - The net interest margin on the credit portfolio decreased to 2.64% from 2.76%[509]. - The fair value of the total commercial mortgage loans was $593,075,000, with performing loans valued at $506,534,000 and non-performing loans at $86,541,000[512]. - The total unpaid principal balance of residential mortgage loans was $3,720,774,000, with non-QM loans at $2,256,738,000 and residential transition loans at $1,174,062,000[517]. Operating Expenses and Management Fees - Total expenses for the three-month period ended September 30, 2024, were $50.9 million, reflecting an increase compared to the previous year[579]. - The gross base management fee for the three-month period ended September 30, 2024, was $6.1 million, up from $5.0 million in 2023, attributed to a larger capital base[602]. - Other investment related expenses increased to $15.7 million for the three-month period ended September 30, 2024, from $9.6 million in 2023, reflecting higher servicing fees and legal expenses[603]. Longbridge Segment Performance - Longbridge's net loss attributable to common stockholders was driven by net losses on interest rate hedges, partially offset by positive results in originations[536]. - New loan origination volume for Longbridge was $354.74 million for the three-month period ended September 30, 2024, up from $304.54 million in the previous quarter[538]. - Interest income from the Longbridge segment increased significantly to $14.6 million for the three-month period ended September 30, 2024, up from $5.2 million in 2023, driven by larger average holdings of proprietary reverse mortgage loans[591].

Ellington Financial, Inc. (NYSE:EFC) Q3 2024 Earnings Conference Call November 7, 2024 11:00 AM ET Company Participants Alaael-Deen Shilleh - Associate General Counsel and Secretary Larry Penn - Chief Executive Officer Mark Tecotzky - Co-Chief Investment Officer JR Herlihy - Chief Financial Officer Conference Call Participants Trevor Cranston - Citizens JMP Francesco Labetti - KBW Matthew Erdner - Jones Trading Eric Hagen - BTIG Matthew Howlett - B. Riley Operator Good morning, ladies and gentlemen, an ...

Financial Performance - Net income attributable to common stockholders for Q3 2024 was $16.2 million, or $0.19 per common share, with $44.0 million from the investment portfolio[1]. - Adjusted Distributable Earnings increased to $34.5 million, or $0.40 per common share, covering dividends[2]. - Net income attributable to common stockholders for the three-month period ended September 30, 2024, was $39,198,000, compared to $4,801,000 for the same period in 2023[24]. - The company reported a net income of $60,072,000 after accounting for preferred stock dividends and other expenses[25]. - Net income attributable to common stockholders was $67,996,000, resulting in a per share amount of $0.80[26]. - Total net income for the same period was $23,323,000, compared to $60,072,000 in the prior quarter, reflecting a decrease of approximately 61%[32]. - The net income (loss) for the same period was $23.323 million, a decrease from $60.072 million in the prior quarter, indicating a decline of about 61.2%[43]. Investment Portfolio - The investment portfolio expanded by 26%, driven by growth in non-QM loans, residential transition loans, and commercial mortgage bridge loans[3]. - Total interest income and other income for the investment portfolio was $104,348,000, with a per share amount of $1.22[25]. - The company’s investment portfolio generated a net income of $44.115 million for the three-month period ended September 30, 2024, down from $69.476 million in the previous quarter, a decrease of about 36.5%[43]. Assets and Liabilities - Total assets increased to $15,953,290,000 as of September 30, 2024, up from $15,092,653,000 at the end of the previous quarter, representing a growth of approximately 5.7%[34]. - Total liabilities increased to $14,327,641,000, up from $13,518,794,000 in the previous quarter, marking a rise of approximately 6%[34]. - Loans at fair value rose to $13,519,786,000, compared to $12,846,106,000 in the prior quarter, indicating an increase of about 5.2%[34]. Equity and Shares - The total equity increased to $1,625,649,000 as of September 30, 2024, from $1,573,859,000 on June 30, 2024[23]. - The weighted average shares of common stock outstanding were 88,039,000 as of September 30, 2024[24]. - The weighted average shares of common stock outstanding increased to 87,198,000 from 85,045,000 in the previous quarter[32]. - The book value per common share decreased to $13.66 from $13.92 in the previous quarter[35]. Dividends - The dividend yield was 13.1% based on the closing stock price of $11.95 per share on November 5, 2024[2]. - The company’s Board of Directors considers earnings, liquidity, financial condition, and REIT distribution requirements when setting dividends[41]. - The total dividends on preferred stock for the three-month period ended September 30, 2024, were $6.833 million, consistent with the previous quarter[44]. Loan Performance - The percentage of delinquent loans in the residential mortgage loan portfolio decreased, while the commercial mortgage loan portfolio saw an increase[9]. - The Longbridge segment reported $8,890,459,000 in HMBS assets as of September 30, 2024, compared to $8,926,658,000 on June 30, 2024[19]. - New loan origination volume for the Longbridge segment was $354,740,000 for the three-month period ended September 30, 2024, up from $304,538,000 for the period ended June 30, 2024[20]. Interest and Expenses - The net interest margin on the credit portfolio decreased to 2.64% from 2.76%[10]. - Interest expense totaled $63,123,000, indicating a significant cost associated with financing[25]. - Investment-related expenses were reported at $11,087,000, impacting overall profitability[25]. - The company incurred $5.418 million in non-capitalized transaction costs and other expense adjustments for the three-month period ended September 30, 2024[43]. Forward-Looking Statements - Forward-looking statements indicate potential risks including changes in interest rates and market conditions that could affect future performance[30]. Conference Call - The conference call to discuss financial results for the quarter ended September 30, 2024, is scheduled for November 7, 2024[29].

You can get access to everything we have to offer right now. Try our service and decide for yourself. I will be going over a preferred share from Ellington Financial (NYSE: EFC ). While we will be covering the Q3 2024 earnings release (when it happens), we did not post a Q2 2024 article for the public. Therefore, I'm going to Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. ...

In the retirement phase of my investing life, my interests have shifted from accumulation mode to a more income-focused approach that I call my Income Compounder portfolio. As an income-oriented investor, my monthly paycheck comes from dividends and distributions that are paid Now retired, I am an income-oriented investor seeking high yield income to support my lifestyle in retirement.I became deeply interested in the stock market beginning in late 2007 (bad timing for me but worse for my uncle) when I rece ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 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 001-34569 Ellington Financial Inc. (Exact Name of Registrant as Specified in Its Charter) Delaware 26-0489289 (State or Other ...

Ellington Financial Inc. (NYSE:EFC) Q2 2024 Results Conference Call August 7, 2024 11:00 AM ET Company Participants Alaael-Deen Shilleh - Associate General Counsel and Secretary Larry Penn - Chief Executive Officer JR Herlihy - Chief Financial Officer Mark Tecotzky - Co-Chief Investment Officer Conference Call Participants Bose George - KBW Crispin Love - Piper Sandler Douglas Harter - UBS Eric Hagen - BTIG Matthew Erdner - JonesTrading Lee Cooperman - Omega Family Office Operator Good morning, ladies and g ...