Ellington Financial(US:EFC)2024-05-07 21:45Financial Performance - Net income attributable to common stockholders for Q1 2024 was $26.9 million, or $0.32 per common share, with $43.0 million from the investment portfolio[7] - Adjusted Distributable Earnings for Q1 2024 were $23.7 million, or $0.28 per common share[7] - Net income attributable to common stockholders for Q1 2024 was $40,943, compared to $26,915 in Q4 2023, reflecting an increase of approximately 52%[30] - Longbridge generated net income of $8.7 million for Q1 2024, despite a 20% sequential decrease in the portfolio to $441.0 million[15] - For the three-month period ended March 31, 2024, the total net income was $34,051,000, compared to a net income of $19,325,000 for the three-month period ended December 31, 2023, representing a 76% increase[53] - Adjusted distributable earnings attributable to common stockholders for the three-month period ended March 31, 2024, were $23,726,000, compared to $18,905,000 for the previous period, reflecting a 25% increase[53] - The earnings per share for common stockholders was $0.28 for the three-month period ended March 31, 2024, compared to $0.27 for the previous period, indicating a slight increase of 3.7%[53] Portfolio and Assets - The total long credit portfolio increased to $2.80 billion as of March 31, 2024, up from $2.74 billion at the end of 2023, driven by growth in residential transition loans and commercial mortgage bridge loans[9] - The Agency RMBS portfolio decreased by 22% quarter-over-quarter to $662.6 million, impacted by net sales and principal repayments[12] - Longbridge's proprietary reverse mortgage loans increased to $365,372 as of March 31, 2024, from $329,575 as of December 31, 2023, marking a growth of about 10.9%[23] - The total origination volume for new loans in Q1 2024 was $204,885, a decrease of 21.7% from $262,182 in Q4 2023[25] - The total equity of Longbridge rose to $1,553,156 as of March 31, 2024, compared to $1,535,612 at the end of 2023[26] - The company retained HMBS MSR Equivalent increased to $94,372 as of March 31, 2024, from $88,447 as of December 31, 2023, showing a growth of approximately 6.5%[23] Financial Ratios and Debt - The recourse debt-to-equity ratio was 1.8:1 as of March 31, 2024, adjusted for unsettled purchases and sales[7] - The recourse debt-to-equity ratio improved to 1.8:1 as of March 31, 2024, down from 2.0:1 at December 31, 2023, indicating a stronger equity position[26] - Longbridge's total borrowings decreased slightly to $13,184,958 as of March 31, 2024, compared to $13,358,848 at December 31, 2023[26] Income and Expenses - The company reported a weighted average share price of $0.32 for common stockholders in Q1 2024, up from $0.10 in Q4 2023[30] - The company incurred $5,491,000 in non-capitalized transaction costs and other expenses for the three-month period ended March 31, 2024, compared to $5,855,000 in the previous period, showing a decrease of 6.2%[53] - Total expenses for the quarter were $58,169,000, which included investment-related expenses of $9,555,000[33] Changes in Assets and Liabilities - Total assets decreased from $15,315,930,000 on December 31, 2023, to $15,132,600,000 as of March 31, 2024, representing a decline of approximately 1.2%[44] - Cash and cash equivalents decreased by 18.1%, from $228,927,000 to $187,467,000[44] - Total liabilities decreased from $13,780,318,000 to $13,579,444,000, a reduction of about 1.5%[44] - Total stockholders' equity increased from $1,517,071,000 to $1,533,459,000, reflecting a growth of approximately 1.1%[44] Gains and Losses - The company reported a realized loss of $30,139,000 and an unrealized gain of $95,464,000 during the quarter[33] - The company reported realized gains of $30,874,000 for the three-month period ended March 31, 2024, compared to $19,835,000 for the previous period, marking a 55% increase[53] - Unrealized losses for the same period were $(25,602,000), an improvement from $(14,114,000) in the previous period, indicating a reduction in losses by 81%[53] Future Outlook - The company plans to host a conference call on May 8, 2024, to discuss financial results for the quarter ended March 31, 2024[38]