Ellington Financial(US:EFC)2026-02-25 23:48Financial Performance - Net income attributable to common stockholders was $14.7 million, or $0.14 per common share, with $42.2 million from the investment portfolio and $16.4 million from Longbridge[5]. - Adjusted Distributable Earnings reached $51.4 million, or $0.47 per common share, driven by $66.4 million from the investment portfolio and $14.6 million from Longbridge[5]. - Net income attributable to common stockholders for the three months ended December 31, 2025, was $38,051, compared to a loss of $43,850 for the previous quarter[28]. - Longbridge's net income for the quarter was $22,614, translating to earnings per share of $0.21, compared to a loss per share of $(0.40) in the previous quarter[28]. - Net income for the three-month period ended December 31, 2025, was $42,961,000, compared to $47,697,000 for the period ended September 30, 2025, reflecting a decrease of 9.5%[50]. - The company reported a net income (loss) of $37,758,000, which includes a realized gain of $8,548,000 and an unrealized loss of $8,261,000[31]. - The company reported total other income of $24,601,000 for the three-month period ended December 31, 2025, down from $33,036,000 in the previous quarter, reflecting a decline of 25.5%[39]. - The company reported unrealized gains of $16,277,000 for the three-month period ended December 31, 2025, compared to unrealized losses of $194,000 for the previous period[50]. Assets and Liabilities - Cash and cash equivalents stood at $201.9 million, alongside unencumbered assets totaling $1.57 billion as of December 31, 2025[5]. - Total assets as of December 31, 2025, reached $19,352,910,000, up from $17,844,548,000 as of September 30, 2025, indicating an increase of 8.4%[41]. - The company’s total liabilities increased to $17,481,755,000 as of December 31, 2025, from $16,048,728,000 as of September 30, 2025, reflecting an increase of 8.9%[41]. - The debt-to-equity ratio was 9.0:1 when including all recourse and non-recourse borrowings[5]. - The overall debt-to-equity ratio increased to 9.0:1 as of December 31, 2025, compared to 8.6:1 as of September 30, 2025[27]. Investment Portfolio - The investment portfolio generated $91,076,000 in income, while interest expense totaled $69,774,000, resulting in a net income from the investment portfolio of $21,302,000[31]. - The company reported interest income and other income of $146,653 for the three months ended December 31, 2025, compared to $102,348 for the previous quarter, indicating a significant increase of approximately 43.25%[28]. - The company incurred total expenses of $39,199,000, which included $17,813,000 in investment and transaction-related expenses[31]. - The net change from reverse mortgage loans and HMBS obligations added $34,954,000 to the income, highlighting the importance of this segment[31]. - The company reported a total of $10,655,000 in adjusted distributable earnings from investments in unconsolidated entities for the three-month period ended December 31, 2025[50]. - The company experienced a loss of $18,203,000 from investments in unconsolidated entities for the three-month period ended December 31, 2025, compared to a loss of $13,074,000 for the previous period[50]. Capital Structure and Strategy - The company plans to optimize its capital structure and balance sheet while increasing market share in loan originations and scaling its securitization platform[4]. - The proportion of total recourse borrowings represented by long-term, non-mark-to-market borrowings almost doubled quarter over quarter[4]. - The company incurred $4,550,000 in non-capitalized transaction costs for the three-month period ended December 31, 2025, compared to $1,758,000 for the previous period, indicating an increase of 158.5%[51]. Longbridge Segment Performance - Longbridge segment reported net income of $16.4 million, with a portfolio decrease of 18% to $617.2 million as of December 31, 2025[9]. - Longbridge's total origination volume for new loans was $529,732 for the three months ended December 31, 2025, compared to $498,577 for the three months ended September 30, 2025, marking an increase of approximately 6.24%[23]. - Longbridge's proprietary reverse mortgage loans increased to $1,687,801 as of December 31, 2025, from $1,387,511 as of September 30, 2025, representing a growth of about 21.63%[21]. - As of December 31, 2025, Longbridge's HMBS assets increased to $10,524,652, up from $10,232,166 as of September 30, 2025, representing a growth of approximately 2.86%[21]. - The long Agency RMBS portfolio decreased slightly to $218.4 million as of December 31, 2025, from $220.7 million as of September 30, 2025[8]. Market Outlook and Risks - Forward-looking statements highlight potential risks including changes in interest rates and market conditions, which could impact future performance[35]. - The company plans to host a conference call on February 26, 2026, to discuss financial results for the quarter ended December 31, 2025, indicating ongoing transparency with investors[34]. Shareholder Information - The weighted average shares of common stock outstanding were 102,726,000, indicating a slight increase in shares compared to previous periods[31]. - The weighted average shares of common stock outstanding increased to 108,491,000 as of December 31, 2025, compared to 101,589,000 in the previous quarter, marking a 6.3% increase[39]. - The book value per common share decreased to $13.16 as of December 31, 2025, down from $13.40 as of September 30, 2025[41]. - Earnings per share attributable to common stockholders for the three-month period ended December 31, 2025, was $0.61, compared to $0.59 for the previous period, reflecting a growth of 3.4%[50].