Ellington Financial Inc. Reports Second Quarter 2023 Results

OLD GREENWICH, Conn.–(BUSINESS WIRE)–Ellington Financial Inc. (NYSE: EFC) (the “Company”) today reported financial results for the quarter ended June 30, 2023.


Highlights

  • Net income attributable to common stockholders of $2.9 million, or $0.04 per common share.1
    • $30.7 million, or $0.46 per common share, from the investment portfolio.
      • $27.0 million, or $0.40 per common share, from the credit strategy.
      • $3.7 million, or $0.06 per common share, from the Agency strategy.
    • $2.5 million, or $0.04 per common share, from Longbridge.
  • Adjusted Distributable Earnings2 of $25.7 million, or $0.38 per common share.
  • Book value per common share as of June 30, 2023 of $14.70, including the effects of dividends of $0.45 per common share for the quarter.
  • Dividend yield of 13.5% based on the August 4, 2023 closing stock price of $13.31 per share, and monthly dividend of $0.15 per common share declared on July 10, 2023.
  • Recourse debt-to-equity ratio3 of 2.1:1 as of June 30, 2023, adjusted for unsettled purchases and sales. Including all non-recourse borrowings, which primarily consist of securitization-related liabilities, debt-to-equity ratio of 9.2:14.
  • Cash and cash equivalents of $194.6 million as of June 30, 2023, in addition to other unencumbered assets of $343.3 million.
  • Signed definitive agreements for the strategic acquisitions of two public mortgage REITs, Arlington Asset Investment Corp. and Great Ajax Corp.

Second Quarter 2023 Results

“In the second quarter, steady performance from our non-QM, residential transition loan, commercial mortgage bridge loan, and credit risk transfer portfolios offset net losses on our loan originator investments and other investments, and EFC generated a modestly positive economic return overall,” said Laurence Penn, Chief Executive Officer and President of Ellington Financial.

“During the quarter, we signed definitive agreements for strategic acquisitions of two public mortgage REITs, Arlington Asset Investment Corp. and Great Ajax Corp. Each of these transactions will add assets that complement and further diversify Ellington Financial’s existing investment strategies and align with our expertise, while also substantially increasing our capital base. As important components of these transactions, we will assume more than $100 million of term, non-mark-to-market unsecured debt and perpetual preferred stock, with attractive costs of capital, as well as a strategic equity investment in a mortgage loan servicer.

“These acquisitions represent important milestones for Ellington Financial. By significantly increasing our scale, they should enhance liquidity for our shareholders and reduce our operating expense ratios, and we project that each of these transactions will be accretive to our earnings within the coming year. We expect to close both transactions later in 2023, at which time EFC’s equity base should exceed $1.7 billion.

“We took several other steps during the quarter that should position us to drive earnings while continuing to navigate market volatility. We took advantage of some attractive entry points to add Agency RMBS and CRT investments, while we also incrementally grew our portfolio of high-yielding RTLs and proprietary reverse mortgage loans. At the same time, we continued to keep duration short on our loan portfolios and dynamically adjust our interest rate and credit hedges, all while maintaining high levels of liquidity and additional borrowing capacity. While Longbridge’s gain-on-sale margins compressed during the quarter, which was the primary driver of the sequential decline in our Adjusted Distributable Earnings, Longbridge’s gain-on-sale margins have recovered somewhat after quarter end. Notably, shortly after quarter end Longbridge was able to acquire, out of a bankruptcy proceeding, a reverse mortgage servicing rights portfolio at a distressed price, which should be immediately accretive to our earnings and Adjusted Distributable Earnings going forward.”

Financial Results

Investment Portfolio Summary

The Company’s investment portfolio generated net income attributable to common stockholders of $30.7 million, consisting of $27.0 million from the credit strategy and $3.7 million from the Agency strategy.

Credit Performance

The Company’s total long credit portfolio, excluding non-retained tranches of consolidated non-QM securitization trusts, increased by 1% sequentially, to $2.45 billion as of June 30, 2023. This slight increase was driven by larger non-QM and RTL loan portfolios quarter over quarter, as net purchases exceeded principal paydowns, and by net purchases of CRT investments. A portion of the increase was offset by a smaller commercial bridge loan portfolio, as loan paydowns in that portfolio again significantly exceeded new originations during the quarter.

Net interest income5 on the Company’s loan portfolios, net gains on its CRT portfolio, and net gains on its interest rate hedges were the primary drivers of the positive results in the Company’s credit strategy. A portion of these gains were offset by negative results in the Company’s investments in unconsolidated entities, including net losses on equity investments in loan originators and commercial mortgage loan-related entities, as well as net realized and unrealized losses on consumer loans and credit hedges. The Company’s residential and commercial mortgage loan portfolios continue to experience low levels of credit losses and strong overall credit performance, although the Company has seen an uptick in delinquencies in these portfolios year-to-date.

During the quarter, borrowing costs on the Company’s credit investments increased, driven by sharply higher short-term interest rates. At the same time, the Company’s asset yields also increased, and it continued to benefit from positive carry on its interest rate swap hedges, where it overall receives a higher floating rate and pays a lower fixed rate. As a result, the net interest margin6 on the Company’s credit portfolio increased quarter over quarter to 2.91% from 2.49%.

Agency Performance

With Agency RMBS yield spreads still wide on a historical basis, the Company opportunistically added to its Agency portfolio during the quarter. As a result, the Company’s total long Agency RMBS portfolio increased by approximately 8% quarter over quarter to $918.5 million.

The second quarter began with elevated interest rate volatility and widening Agency MBS yield spreads, as the market prepared for sales by the FDIC of MBS from failed regional banks. Later in the quarter, with the FDIC sales well absorbed and with the debt ceiling dispute resolved, volatility declined and Agency MBS yield spreads tightened. Accordingly, the Company experienced moderate losses in its Agency strategy in April, but these were reversed in May and June. On balance, the Agency strategy had positive income for the quarter as net gains on interest rate hedges exceeded net losses on Agency RMBS and negative net interest income, which was driven by sharply higher financing costs.

Average pay-ups on the Company’s specified pools decreased slightly to 0.78% as of June 30, 2023, as compared to 0.89% as of March 31, 2023.

As was the case with its credit portfolio, higher borrowing costs on the Company’s Agency portfolio were more than offset by higher asset yields and greater positive carry on its interest rate swap hedges, quarter over quarter. As a result, the net interest margin5 on its Agency RMBS, excluding the Catch-up Premium Amortization Adjustment, increased to 1.31% from 1.14%.

Longbridge Summary

Longbridge’s portfolio decreased by 3% sequentially to $429.8 million as of June 30, 2023. The decrease was due to smaller holdings of unsecuritized HECM loans, primarily driven by significant resolutions of HECM buyout loans, and a smaller HMBS MSR Equivalent quarter over quarter, partially offset by increased holdings of proprietary reverse mortgage loans.

Longbridge’s portfolio generated net income attributable to common stockholders of $2.5 million. Longbridge’s net income for the quarter was driven by net gains related to the resolutions of HECM buyout loans, net gains on proprietary reverse mortgage loans, and net gains on interest rate hedges. These gains were partially offset by net losses on the HMBS MSR Equivalent7, which was driven by the combination of higher interest rates and wider yield spreads in the HECM market during the quarter, and a net loss in originations, as reduced gain-on-sale margins on HECM loans more than offset an increase in overall origination volumes.

_______________________________

1 Includes ($30.3) million of preferred dividends accrued and certain corporate/other income and expense items not attributed to either the investment portfolio or Longbridge.

2 Adjusted Distributable Earnings is a non-GAAP financial measure. See “Reconciliation of Net Income (Loss) to Adjusted Distributable Earnings” below for an explanation regarding the calculation of Adjusted Distributable Earnings.

3 Excludes U.S. Treasury securities and repo borrowings at certain unconsolidated entities that are recourse to the Company. Including such borrowings, the Company’s debt-to-equity ratio based on total recourse borrowings was 2.3:1 as of June 30, 2023.

4 Excludes U.S. Treasury securities.

5 Excludes any interest income and interest expense items from interest rate hedges, net credit hedges and other activities, net.

6 Net interest margin represents the weighted average asset yield less the weighted average secured financing cost of funds. It also includes the effect of actual and accrued periodic payments on interest rate swaps used to hedge the assets.

7 HMBS assets are consolidated for GAAP reporting purposes, and HMBS-related obligations are accounted for on the Company’s balance sheet as secured borrowings. The fair value of HMBS assets less the fair value of the HMBS-related obligations approximate fair value of the HMBS MSR Equivalent.

Corporate/Other

The Company’s results for the quarter also reflected a net loss on the interest rate swaps that it uses to hedge its preferred equity and unsecured long-term debt, its “Senior Notes,” which was driven by rising interest rates quarter over quarter, as well as expenses related to the agreed upon, but not yet completed, mergers of Arlington Asset Investment Corp. and Great Ajax Corp.

Credit Portfolio(1)

The following table summarizes the Company’s credit portfolio holdings as of June 30, 2023 and March 31, 2023:

 

 

June 30, 2023

 

March 31, 2023

($ in thousands)

 

Fair Value

 

%

 

Fair Value

 

%

Dollar denominated:

 

 

 

 

 

 

 

 

CLOs(2)

 

$

          24,722

 

0.6 %

 

$

          31,044

 

0.8 %

CMBS

 

 

            20,752

 

0.5 %

 

 

            16,422

 

0.4 %

Commercial mortgage loans and REO(3)(4)

 

 

          419,915

 

10.7 %

 

 

          455,114

 

11.5  %

Consumer loans and ABS backed by consumer loans(2)

 

 

            93,116

 

2.4 %

 

 

            87,976

 

2.2 %

Corporate debt and equity and corporate loans

 

 

            21,907

 

0.6 %

 

 

            18,882

 

0.5 %

Debt and equity investments in loan origination entities(5)

 

 

            38,815

 

1.0 %

 

 

            40,906

 

1.0 %

Non-Agency RMBS

 

 

          224,075

 

5.7 %

 

 

          207,068

 

5.2 %

Non-QM loans and retained non-QM RMBS(6)

 

 

       2,077,870

 

53.2 %

 

 

       2,122,561

 

53.7 %

Residential transition loans and other residential mortgage loans and REO(3)

 

 

          963,772

 

24.7 %

 

 

          951,811

 

24.1 %

Non-Dollar denominated:

 

 

 

 

 

 

 

 

CLOs(2)

 

 

               1,738

 

0.1 %

 

 

               1,674

 

0.1 %

Corporate debt and equity

 

 

                  238

 

—  %

 

 

                  213

 

—  %

RMBS(7)

 

 

            20,979

 

0.5 %

 

 

            19,525

 

0.5 %

Total long credit portfolio

 

$

     3,907,899

 

100.0 %

 

$

     3,953,196

 

100.0 %

Less: Non-retained tranches of consolidated securitization trusts

 

 

       1,458,673

 

 

 

 

       1,527,527

 

 

Total long credit portfolio excluding non-retained tranches of consolidated securitization trusts

 

$

     2,449,226

 

 

 

$

     2,425,669

 

 

  1. This information does not include U.S. Treasury securities, securities sold short, or financial derivatives.
  2. Includes equity investments in securitization-related vehicles.
  3. In accordance with U.S. GAAP, REO is not considered a financial instrument and as a result is included at the lower of cost or fair value.
  4. Includes equity investments in unconsolidated entities holding small balance commercial mortgage loans and REO.
  5. Includes corporate loans to certain loan origination entities in which the Company holds an equity investment.
  6. Retained non-QM RMBS represents RMBS issued by non-consolidated Ellington-sponsored non-QM loan securitization trusts, and interests in entities holding such RMBS.
  7. Includes an equity investment in an unconsolidated entity holding European RMBS.

Agency RMBS Portfolio(1)

The following table summarizes the Company’s Agency RMBS portfolio holdings as of June 30, 2023 and March 31, 2023:

 

 

June 30, 2023

 

March 31, 2023

($ in thousands)

 

Fair Value

 

%

 

Fair Value

 

%

Long Agency RMBS:

 

 

 

 

 

 

 

 

Fixed rate

 

$

           872,726

 

95.0 %

 

$

           803,654

 

94.2 %

Floating rate

 

 

                  5,329

 

0.6 %

 

 

                  5,881

 

0.7 %

Reverse mortgages

 

 

               26,928

 

2.9 %

 

 

               28,638

 

3.4 %

IOs

 

 

               13,511

 

1.5 %

 

 

               14,939

 

1.7 %

Total long Agency RMBS

 

$

           918,494

 

100.0 %

 

$

           853,112

 

100.0 %

  1. This information does not include U.S. Treasury securities, securities sold short, or financial derivatives.

Longbridge Portfolio(1)

Longbridge originates reverse mortgage loans, including home equity conversion mortgage loans, or “HECMs,” which are insured by the FHA and which are eligible for inclusion in GNMA-guaranteed HECM-backed MBS, or “HMBS.” Upon securitization, the HECMs remain on the Company’s balance sheet under GAAP, and Longbridge retains the mortgage servicing rights associated with the HMBS, or “HMBS MSR Equivalent.” Longbridge also originates “proprietary reverse mortgage loans,” which are not insured by the FHA, and Longbridge has typically retained the associated MSRs. The following table summarizes Longbridge’s loan-related assets as of June 30, 2023 and March 31, 2023:

 

 

June 30, 2023

 

March 31, 2023

 

 

(In thousands)

HMBS assets(2)

 

$

               8,158,304

 

 

$

                8,083,845

 

Less: HMBS liabilities

 

 

               (8,055,288

)

 

 

                (7,975,916

)

HMBS MSR Equivalent

 

 

                     103,016

 

 

 

                      107,929

 

Unsecuritized HECM loans(3)

 

 

                     132,845

 

 

 

                      187,782

 

Proprietary reverse mortgage loans

 

 

                     185,052

 

 

 

                      138,234

 

MSRs related to proprietary reverse mortgage loans

 

 

                         7,473

 

 

 

                          8,100

 

Unsecuritized REO

 

 

                         1,417

 

 

 

                             421

 

Total

 

$

                  429,803

 

 

$

                   442,466

 

  1. This information does not include financial derivatives or loan commitments.
  2. Includes HECM loans, related REO, and claims or other receivables.
  3. As of June 30, 2023, includes $9.9 million of assignable HECM buyout loans, $14.1 million of non-assignable HECM buyout loans, and $4.6 million of other inactive HECM loans. As of March 31, 2023, includes $52.0 million of assignable HECM buyout loans, $16.4 million of non-assignable HECM buyout loans, and $4.4 million of other inactive HECM loans.

The following table summarizes Longbridge’s origination volumes by channel for the three-month periods ended June 30, 2023 and March 31, 2023:

($ In thousands)

 

June 30, 2023

 

March 31, 2023

Channel

 

Units

 

New Loan Origination Volume(1)

 

% of New Loan Origination Volume

 

Units

 

New Loan Origination Volume(1)

 

% of New Loan Origination Volume

Retail

 

           397

 

$

          62,037

 

21 %

 

           375

 

$

          52,765

 

23 %

Wholesale and correspondent

 

        1,338

 

 

          235,375

 

79 %

 

        1,106

 

 

          180,829

 

77 %

Total

 

        1,735

 

 

          297,412

 

100 %

 

        1,481

 

 

          233,594

 

100 %

  1. Represents initial borrowed amounts on reverse mortgage loans.

Financing

The Company’s recourse debt-to-equity ratio2, excluding U.S. Treasury securities and adjusted for unsettled purchases and sales, increased slightly to 2.1:1 at June 30, 2023from 2.0:1 at March 31, 2023, driven by an increase in borrowings and a decrease in total equity. The Company’s overall debt-to-equity ratio, excluding U.S. Treasury securities and adjusted for unsettled purchases and sales, also increased during the quarter, to 9.2:1 as of June 30, 2023, as compared to 8:9:1 as of March 31, 2023.

The following table summarizes the Company’s outstanding borrowings and debt-to-equity ratios as of June 30, 2023 and March 31, 2023:

 

 

June 30, 2023

 

March 31, 2023

 

 

Outstanding Borrowings(1)

 

Debt-to-Equity Ratio(2)

 

Outstanding Borrowings(1)

 

Debt-to-Equity Ratio(2)

 

 

(In thousands)

 

 

 

(In thousands)

 

 

Recourse borrowings(3)(4)

 

$

       3,010,764

 

2.2:1

 

$

       2,859,538

 

2.1:1

Non-recourse borrowings(4)

 

 

         9,527,656

 

7.1:1

 

 

         9,510,508

 

6.9:1

Total Borrowings

 

$

    12,538,420

 

9.3:1

 

$

    12,370,046

 

9.0:1

Total Equity

 

$

       1,344,657

 

 

 

$

       1,374,763

 

 

Recourse borrowings excluding U.S. Treasury securities, adjusted for unsettled purchases and sales

 

 

 

2.1:1

 

 

 

2.0:1

Total borrowings excluding U.S. Treasury securities, adjusted for unsettled purchases and sales

 

 

 

9.2:1

 

 

 

8.9:1

  1. Includes borrowings under repurchase agreements, other secured borrowings, other secured borrowings, at fair value, and senior unsecured notes, at par.
  2. Overall debt-to-equity ratio is computed by dividing outstanding borrowings by total equity. The debt-to-equity ratio does not account for liabilities other than debt financings.
  3. Excludes repo borrowings at certain unconsolidated entities that are recourse to the Company. Including such borrowings, the Company’s debt-to-equity ratio based on total recourse borrowings is 2.3:1 and 2.2:1 as of June 30, 2023 and March 31, 2023, respectively.
  4. All of the Company’s non-recourse borrowings are secured by collateral. In the event of default under a non-recourse borrowing, the lender has a claim against the collateral but not any of the other assets held by the Company or its consolidated subsidiaries. In the event of default under a recourse borrowing, the lender’s claim is not limited to the collateral (if any).

The following table summarizes the Company’s operating results by strategy for the three-month period ended June 30, 2023:

 

 

Investment Portfolio

 

Longbridge

 

Corporate/Other

 

Total

 

Per Share

(In thousands except per share amounts)

 

Credit

 

Agency

 

Investment Portfolio Subtotal

 

 

 

 

Interest income and other income (1)

 

$

            73,544

 

 

$

              7,816

 

 

$

            81,360

 

 

$

         6,305

 

 

$

       1,195

 

 

$

  88,860

 

 

$

    1.31

 

Interest expense

 

 

            (41,672

)

 

 

              (9,645

)

 

 

            (51,317

)

 

 

         (6,117

)

 

 

       (3,109

)

 

 

  (60,543

)

 

 

    (0.89

)

Realized gain (loss), net

 

 

              (4,271

)

 

 

            (14,794

)

 

 

            (19,065

)

 

 

                —

 

 

 

              —

 

 

 

  (19,065

)

 

 

    (0.28

)

Unrealized gain (loss), net

 

 

              (1,984

)

 

 

                1,403

 

 

 

                 (581

)

 

 

           5,611

 

 

 

              —

 

 

 

      5,030

 

 

 

      0.07

 

Net change from reverse mortgage loans and HMBS obligations

 

 

                     —

 

 

 

                     —

 

 

 

                     —

 

 

 

           7,544

 

 

 

              —

 

 

 

      7,544

 

 

 

      0.11

 

Earnings in unconsolidated entities

 

 

              (5,868

)

 

 

                     —

 

 

 

              (5,868

)

 

 

                —

 

 

 

              —

 

 

 

    (5,868

)

 

 

    (0.09

)

Interest rate hedges and other activity, net(2)

 

 

              14,787

 

 

 

              18,877

 

 

 

              33,664

 

 

 

         14,949

 

 

 

       (9,319

)

 

 

    39,294

 

 

 

      0.58

 

Credit hedges and other activities, net(3)

 

 

              (1,798

)

 

 

                     —

 

 

 

              (1,798

)

 

 

                —

 

 

 

              —

 

 

 

    (1,798

)

 

 

    (0.03

)

Income tax (expense) benefit

 

 

                     —

 

 

 

                     —

 

 

 

                     —

 

 

 

                —

 

 

 

            (83

)

 

 

         (83

)

 

 

         —

 

Investment related expenses

 

 

              (1,830

)

 

 

                     —

 

 

 

              (1,830

)

 

 

         (7,560

)

 

 

              —

 

 

 

    (9,390

)

 

 

    (0.14

)

Other expenses

 

 

              (2,035

)

 

 

                     —

 

 

 

              (2,035

)

 

 

       (18,256

)

 

 

     (12,951

)

 

 

  (33,242

)

 

 

    (0.49

)

Net income (loss)

 

 

              28,873

 

 

 

                3,657

 

 

 

              32,530

 

 

 

           2,476

 

 

 

     (24,267

)

 

 

    10,739

 

 

 

      0.16

 

Dividends on preferred stock

 

 

                     —

 

 

 

                     —

 

 

 

                     —

 

 

 

                —

 

 

 

       (5,980

)

 

 

    (5,980

)

 

 

    (0.09

)

Net (income) loss attributable to non-participating non-controlling interests

 

 

              (1,847

)

 

 

                     —

 

 

 

              (1,847

)

 

 

                25

 

 

 

              (4

)

 

 

    (1,826

)

 

 

    (0.03

)

Net income (loss) attributable to common stockholders and participating non-controlling interests

 

 

              27,026

 

 

 

                3,657

 

 

 

              30,683

 

 

 

           2,501

 

 

 

     (30,251

)

 

 

      2,933

 

 

 

      0.04

 

Net (income) loss attributable to participating non-controlling interests

 

 

                     —

 

 

 

                     —

 

 

 

                     —

 

 

 

                —

 

 

 

            (35

)

 

 

         (35

)

 

 

Net income (loss) attributable to common stockholders

 

$

            27,026

 

 

$

              3,657

 

 

$

            30,683

 

 

$

         2,501

 

 

$

   (30,286

)

 

$

    2,898

 

 

$

    0.04

 

Net income (loss) attributable to common stockholders per share of common stock

 

$

                0.40

 

 

$

                0.06

 

 

$

                0.46

 

 

$

           0.04

 

 

$

       (0.45

)

 

$

      0.04

 

 

 

Weighted average shares of common stock and convertible units(4) outstanding

 

 

 

 

 

 

 

 

 

 

 

 

    67,978

 

 

 

Weighted average shares of common stock outstanding

 

 

 

 

 

 

 

 

 

 

 

 

    67,162

 

 

 

  1. Other income primarily consists of rental income on real estate owned, loan origination fees, and servicing income.
  2. Includes U.S. Treasury securities, if applicable.
  3. Other activities include certain equity and other trading strategies and related hedges, and net realized and unrealized gains (losses) on foreign currency.
  4. Convertible units include Operating Partnership units attributable to participating non-controlling interests.

The following table summarizes the Company’s operating results by strategy for the three-month period ended March 31, 2023:

 

 

Investment Portfolio

 

Longbridge

 

Corporate/Other

 

Total

 

Per Share

(In thousands except per share amounts)

 

Credit

 

Agency

 

Investment Portfolio Subtotal

 

 

 

 

Interest income and other income (1)

 

$

            73,570

 

 

$

              7,121

 

 

$

            80,691

 

 

$

         4,165

 

 

$

       1,912

 

 

$

  86,768

 

 

$

    1.29

 

Interest expense

 

 

            (40,579

)

 

 

              (8,852

)

 

 

            (49,431

)

 

 

         (4,346

)

 

 

       (3,135

)

 

 

  (56,912

)

 

 

    (0.84

)

Realized gain (loss), net

 

 

            (10,382

)

 

 

            (25,849

)

 

 

            (36,231

)

 

 

                (3

)

 

 

              —

 

 

 

  (36,234

)

 

 

    (0.54

)

Unrealized gain (loss), net

 

 

              21,911

 

 

 

              42,338

 

 

 

              64,249

 

 

 

           6,133

 

 

 

         6,510

 

 

 

    76,892

 

 

 

      1.14

 

Net change from reverse mortgage loans and HMBS obligations

 

 

                     —

 

 

 

                     —

 

 

 

                     —

 

 

 

         31,587

 

 

 

              —

 

 

 

    31,587

 

 

 

      0.47

 

Earnings in unconsolidated entities

 

 

                3,444

 

 

 

                     —

 

 

 

                3,444

 

 

 

                —

 

 

 

              —

 

 

 

      3,444

 

 

 

      0.05

 

Interest rate hedges and other activity, net(2)

 

 

              (9,042

)

 

 

              (9,443

)

 

 

            (18,485

)

 

 

         (5,591

)

 

 

            838

 

 

 

  (23,238

)

 

 

    (0.34

)

Credit hedges and other activities, net(3)

 

 

                   369

 

 

 

                     —

 

 

 

                   369

 

 

 

                —

 

 

 

              —

 

 

 

         369

 

 

 

      0.01

 

Income tax (expense) benefit

 

 

                     —

 

 

 

                     —

 

 

 

                     —

 

 

 

                —

 

 

 

            (21

)

 

 

         (21

)

 

 

         —

 

Investment related expenses

 

 

              (2,619

)

 

 

                     —

 

 

 

              (2,619

)

 

 

         (6,057

)

 

 

              —

 

 

 

    (8,676

)

 

 

    (0.13

)

Other expenses

 

 

                 (886

)

 

 

                     —

 

 

 

                 (886

)

 

 

       (19,390

)

 

 

       (8,950

)

 

 

  (29,226

)

 

 

    (0.43

)

Net income (loss)

 

 

              35,786

 

 

 

                5,315

 

 

 

              41,101

 

 

 

           6,498

 

 

 

       (2,846

)

 

 

    44,753

 

 

 

      0.66

 

Dividends on preferred stock

 

 

                     —

 

 

 

                     —

 

 

 

                     —

 

 

 

                —

 

 

 

       (5,117

)

 

 

    (5,117

)

 

 

    (0.08

)

Net (income) loss attributable to non-participating non-controlling interests

 

 

                 (238

)

 

 

                     —

 

 

 

                 (238

)

 

 

                (2

)

 

 

              (4

)

 

 

       (244

)

 

 

      0.00

 

Net income (loss) attributable to common stockholders and participating non-controlling interests

 

 

              35,548

 

 

 

                5,315

 

 

 

              40,863

 

 

 

           6,496

 

 

 

       (7,967

)

 

 

    39,392

 

 

 

      0.58

 

Net (income) loss attributable to participating non-controlling interests

 

 

                     —

 

 

 

                     —

 

 

 

                     —

 

 

 

                —

 

 

 

          (476

)

 

 

       (476

)

 

 

Net income (loss) attributable to common stockholders

 

$

            35,548

 

 

$

              5,315

 

 

$

            40,863

 

 

$

         6,496

 

 

$

     (8,443

)

 

$

  38,916

 

 

$

    0.58

 

Net income (loss) attributable to common stockholders per share of common stock

 

$

                0.53

 

 

$

                0.08

 

 

$

                0.61

 

 

$

           0.10

 

 

$

       (0.13

)

 

$

      0.58

 

 

 

Weighted average shares of common stock and convertible units(4) outstanding

 

 

 

 

 

 

 

 

 

 

 

 

    67,488

 

 

 

Weighted average shares of common stock outstanding

 

 

 

 

 

 

 

 

 

 

 

 

    66,672

 

 

 

Contacts

Investors:

Ellington Financial Inc.

Investor Relations

(203) 409-3575

info@ellingtonfinancial.com

or

Media:

Amanda Shpiner/Sara Widmann

Gasthalter & Co.

for Ellington Financial

(212) 257-4170

Ellington@gasthalter.com

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