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Ellington Financial(EFC) - 2024 Q3 - Quarterly Results
EFCEllington Financial(EFC)2024-11-06 22:02

Financial Performance - Net income attributable to common stockholders for Q3 2024 was 16.2million,or16.2 million, or 0.19 per common share, with 44.0millionfromtheinvestmentportfolio[1].−AdjustedDistributableEarningsincreasedto44.0 million from the investment portfolio[1]. - Adjusted Distributable Earnings increased to 34.5 million, or 0.40percommonshare,coveringdividends[2].−Netincomeattributabletocommonstockholdersforthethree−monthperiodendedSeptember30,2024,was0.40 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 4,801,000forthesameperiodin2023[24].−Thecompanyreportedanetincomeof4,801,000 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,resultinginapershareamountof67,996,000, resulting in a per share amount of 0.80[26]. - Total net income for the same period was 23,323,000,comparedto23,323,000, 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 23.323million,adecreasefrom23.323 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,withapershareamountof104,348,000, with a per share amount of 1.22[25]. - The company’s investment portfolio generated a net income of 44.115millionforthethree−monthperiodendedSeptember30,2024,downfrom44.115 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 15,953,290,000asofSeptember30,2024,upfrom15,953,290,000 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,upfrom14,327,641,000, 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,comparedto13,519,786,000, 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 1,625,649,000asofSeptember30,2024,from1,625,649,000 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 13.66from13.66 from 13.92 in the previous quarter[35]. Dividends - The dividend yield was 13.1% based on the closing stock price of 11.95pershareonNovember5,2024[2].−Thecompany’sBoardofDirectorsconsidersearnings,liquidity,financialcondition,andREITdistributionrequirementswhensettingdividends[41].−Thetotaldividendsonpreferredstockforthethree−monthperiodendedSeptember30,2024,were11.95 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 8,890,459,000inHMBSassetsasofSeptember30,2024,comparedto8,890,459,000 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 354,740,000forthethree−monthperiodendedSeptember30,2024,upfrom354,740,000 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,indicatingasignificantcostassociatedwithfinancing[25].−Investment−relatedexpenseswerereportedat63,123,000, 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].