Ellington Financial(EFC)2025-02-27 23:18Financial 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]