Ellington Financial Inc. Reports First Quarter 2026 Results
OLD GREENWICH, Conn.--(BUSINESS WIRE)--Ellington Financial Inc. (NYSE: EFC) ("we") today reported financial results for the quarter ended March 31, 2026.
Highlights
-
Net income attributable to common stockholders of $95.5 million, or $0.78 per common share.1
-
$76.4 million, or $0.63 per common share, from the investment portfolio.
- $74.7 million, or $0.61 per common share, from the credit strategy.
- $1.7 million, or $0.02 per common share, from the Agency strategy.
- $57.5 million, or $0.47 per common share, from Longbridge.
-
$76.4 million, or $0.63 per common share, from the investment portfolio.
-
Adjusted Distributable Earnings of $66.5 million, or $0.55 per common share.2
- $70.8 million, or $0.58 per common share, from the investment portfolio.
- $25.4 million, or $0.21 per common share, from Longbridge.
- Book value per common share as of March 31, 2026 of $13.56, including the effects of dividends of $0.39 per common share for the quarter.
-
Recourse debt-to-equity ratio3 of 1.9:1 as of March 31, 2026. Including all recourse and non-recourse borrowings, which primarily consist of securitization-related liabilities, debt-to-equity ratio of 9.0:13.
- 30% of total recourse borrowings3 are long-term and non-mark-to-market
- 18% of total recourse borrowings3 are unsecured
- Weighted average remaining term of repo borrowings3 is 9.0 months
- Total unencumbered assets4 of $1.92 billion, consisting of cash and cash equivalents of $163.2 million and other unencumbered assets of $1.75 billion as of March 31, 2026.
First Quarter 2026 Results
"Ellington Financial delivered an exceptionally strong first quarter, generating excellent results even as market volatility rose," said Laurence Penn, Chief Executive Officer and President. "Broad-based contributions across our diversified portfolio drove robust GAAP net income, an annualized economic return of 26%, and book value per share appreciation of 3% net of dividends. Adjusted distributable earnings continued to outpace dividends, supported by high yields and steady credit performance from our loan portfolios, as well as securitization gains at Longbridge. Our Longbridge segment had a tremendous quarter, contributing $0.47 per share to net income and $0.21 per share to ADE for the quarter.
"Our securitization platform continued to operate at an energetic pace during the quarter, as we participated in seven transactions totaling more than $2.8 billion, well above the volume in the comparable period of 2025. Our shift to larger deal sizes, without compromising speed to market, reflects the ongoing scaling of our origination platform. This has translated directly into improved execution economics, as fixed transaction costs are spread across larger pool balances, and as bigger transactions attract a broader and deeper institutional investor base. Greater market presence also enables us to lock in attractive, long-term, non-mark-to-market financing at even more attractive terms.
“At the end of January, we raised common equity on an accretive basis with a highly targeted use of proceeds, namely retiring our highest-cost preferred equity. We will monitor the preferred equity market with an eye toward potentially issuing additional preferred equity at a lower cost. Meanwhile, following the successful completion of our inaugural Moody’s- and Fitch-rated long-term debt deal in the fourth quarter of last year, we have meaningfully enhanced our ability to access the long-term institutional debt markets. Collectively, these actions have further strengthened our balance sheet and enhanced our financial flexibility, positioning us to act decisively, including capitalizing on the compelling investment opportunities emerging from the current environment.”
| ____________________________________ | ||
1 | Represents $133.9 million of aggregate net income from the investment portfolio and Longbridge segments, less $38.4 million of preferred dividends accrued and certain corporate/other income and expense items not attributed to either the investment portfolio or Longbridge segments. | |
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. Represents $96.3 million of aggregate Adjusted Distributable Earnings from the investment portfolio and Longbridge segments, less $29.8 million of certain corporate/other items not attributed to either the investment portfolio or Longbridge segments. | |
3 | Excludes borrowings collateralized by U.S. Treasury securities. | |
4 | Total unencumbered assets is calculated in accordance with the definition of "Consolidated Unencumbered Assets" set forth in the indenture governing our 7.375% Senior Notes due September 30, 2030. | |
Financial Results
Investment Portfolio Segment
The investment portfolio segment generated net income of $77.6 million in the first quarter, consisting of $75.8 million from the credit strategy and $1.7 million from the Agency strategy.
Credit
The total adjusted long credit portfolio5 increased by 4% sequentially to $4.27 billion as of March 31, 2026. The increase was driven by purchases of non-QM loans, Agency-eligible loans, and residential transition loans; and a larger portfolio of retained RMBS. These increases were partially offset by the impact of loans sold into securitizations.
Key Highlights6:
- Overall positive performance driven by higher net interest income in the credit portfolio, and net realized and unrealized gains on non-QM loans and retained tranches, closed-end second lien loans and retained tranches, and Agency-eligible loans; along with unrealized gains on commercial REO, and certain other investments.
- Partially offsetting higher net interest income were net realized and unrealized losses on CLOs, non-Agency RMBS, non-performing and re-performing residential mortgage loans, and residential REO.
- Strong credit performance across our loan businesses, including sequentially lower 90-day delinquency rates and continued low life-to-date realized credit losses in both our residential and commercial loan portfolios.
- Excellent overall results from equity investments in loan originators.
During the quarter, the net interest margin7 on our credit portfolio increased modestly to 3.46% from 3.38%8, as slightly higher asset yields were partially offset by a slightly higher cost of funds. We continued to benefit from positive carry on our interest rate swap hedges, where we overall receive a higher floating rate and pay a lower fixed rate.
Agency
The long Agency RMBS portfolio decreased by 3% sequentially to $197.3 million as of March 31, 2026.
Key Highlights6:
- Positive results driven by net interest income and net gains on interest rate hedges, due to the increase in interest rates quarter over quarter. These gains were partially offset by net losses on our Agency RMBS, with spreads on many Agency RMBS wider during the quarter.
- Pay-ups on our specified pools increased to 0.83% as of March 31, 2026, from 0.79% as of December 31, 2025.
The net interest margin7 on our Agency portfolio (excluding the Catch-up Amortization Adjustment) decreased to 1.47% as of March 31, 2026, from 1.90%8 as of December 31, 2025, driven by a higher cost of funds. We continued to benefit from positive carry on our interest rate swap hedges, where we overall receive a higher floating rate and pay a lower fixed rate, but that benefit declined during the quarter, contributing to the higher cost of funds.
Longbridge Segment
The Longbridge segment reported net income of $57.5 million for the first quarter. The Longbridge portfolio (excluding non-retained tranches of consolidated securitization trusts) increased by 13% sequentially to $695.1 million as of March 31, 2026, driven by continued strong proprietary reverse mortgage loan origination volumes, partially offset by the impact of a securitization of proprietary reverse mortgage loans completed during the quarter. Longbridge originated $515.4 million of new loans during the quarter, which was a 52% increase from the same period in 2025.
Key Highlights6:
- Strong contribution from originations, supported by continued robust origination volumes and margins, and net gains related to the proprietary reverse mortgage loan securitization completed during the quarter.
- Positive contribution from servicing, reflecting: (i) strong tail securitization executions; (ii) a net gain on the HMBS MSR, driven primarily by tighter HMBS yield spreads; and (iii) steady base servicing net income.
- Income related to the settlement of a lawsuit, pursuant to which Longbridge received a payment of $17.0 million.
- Net gains on interest rate hedges.
| ____________________________________ | ||
5 | Excludes non-retained tranches of consolidated securitization trusts. | |
6 | Sector-level results include associated financing costs and hedging gains/losses where applicable. | |
7 | Net interest margin represents the weighted average asset yield less the weighted average secured financing cost of funds on such assets. It also includes the effect of actual and accrued periodic payments on interest rate swaps used to hedge the assets. | |
8 | Conformed to current period presentation. | |
Corporate/Other Summary
Results for the quarter also reflect a significant unrealized gain on our unsecured debt, driven by credit spread widening during the quarter, partially offset by an incentive fee accrued during the first quarter.
Credit Portfolio(1)
The following table summarizes our credit portfolio holdings as of March 31, 2026 and December 31, 2025:
|
| March 31, 2026 |
| December 31, 2025(2) | ||||||||
($ in thousands) |
| Fair Value |
| % |
| Fair Value |
| % | ||||
Dollar denominated: |
|
|
|
|
|
|
|
| ||||
Agency-eligible residential mortgage loans and retained RMBS(6)(8) |
| $ | 313,537 |
| 5.5 | % |
| $ | 243,615 |
| 4.4 | % |
CLOs |
|
| 97,108 |
| 1.7 | % |
|
| 111,808 |
| 2.0 | % |
CMBS |
|
| 28,883 |
| 0.5 | % |
|
| 26,550 |
| 0.5 | % |
Commercial mortgage loans(3)(5) |
|
| 776,588 |
| 13.5 | % |
|
| 765,059 |
| 13.7 | % |
Consumer loans and ABS backed by consumer loans(6) |
|
| 149,151 |
| 2.6 | % |
|
| 143,648 |
| 2.6 | % |
Corporate debt and equity and corporate loans |
|
| 33,378 |
| 0.6 | % |
|
| 29,147 |
| 0.5 | % |
Debt and equity investments in loan origination-related entities(7) |
|
| 100,589 |
| 1.7 | % |
|
| 95,688 |
| 1.7 | % |
Forward MSR-related investments |
|
| 72,824 |
| 1.3 | % |
|
| 77,852 |
| 1.4 | % |
Home equity line of credit and closed-end second lien loans and retained RMBS(6)(8) |
|
| 357,385 |
| 6.2 | % |
|
| 364,838 |
| 6.6 | % |
Non-QM loans and retained RMBS(3)(6)(8) |
|
| 2,667,157 |
| 46.4 | % |
|
| 2,624,068 |
| 47.2 | % |
Other RMBS |
|
| 110,603 |
| 1.9 | % |
|
| 109,974 |
| 2.0 | % |
Residential transition loans and other residential mortgage loans(2)(3)(4) |
|
| 905,583 |
| 15.7 | % |
|
| 839,456 |
| 15.1 | % |
Other investments(9)(10) |
|
| 79,398 |
| 1.4 | % |
|
| 70,466 |
| 1.3 | % |
Non-Dollar denominated: |
|
|
|
|
|
|
|
| ||||
CLOs |
|
| 11,983 |
| 0.2 | % |
|
| 13,232 |
| 0.2 | % |
RMBS(11)(12) |
|
| 21,737 |
| 0.4 | % |
|
| 16,953 |
| 0.3 | % |
Other residential mortgage loans |
|
| 25,707 |
| 0.4 | % |
|
| 27,536 |
| 0.5 | % |
Total long credit portfolio |
| $ | 5,751,611 |
| 100.0 | % |
| $ | 5,559,890 |
| 100.0 | % |
Adjustments: |
|
|
|
|
|
|
|
| ||||
Less: Non-retained tranches of consolidated securitization trusts |
|
| 1,480,798 |
|
|
|
| 1,433,814 |
|
| ||
Total adjusted long credit portfolio |
| $ | 4,270,813 |
|
|
| $ | 4,126,076 |
|
| ||
(1) | This information does not include U.S. Treasury securities, securities sold short, or financial derivatives. | |
(2) | Conformed to current period presentation. | |
(3) | Includes related REO. 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) | Other residential mortgage loans include secondary market purchases of non-performing and re-performing mortgage loans. | |
(5) | Includes equity investments in unconsolidated entities holding commercial mortgage loans and REO and corporate loans secured by commercial mortgage loans. | |
(6) | Includes equity investments in securitization-related vehicles. | |
(7) | Includes corporate loans made to certain loan origination entities in which we hold an equity investment. | |
(8) | Retained RMBS represents RMBS issued by non-consolidated Ellington-sponsored loan securitization trusts, and interests in entities holding such RMBS. | |
(9) | Includes equity investment in Ellington affiliate. | |
(10) | Includes equity investment in an unconsolidated entity which purchases certain other loans for eventual securitization. | |
(11) | Includes loan to an entity which purchases residential mortgage loans for eventual securitization. | |
(12) | Includes equity investment in an unconsolidated entity holding European RMBS. |
Agency RMBS Portfolio
The following table(1) summarizes our Agency RMBS portfolio holdings as of March 31, 2026 and December 31, 2025:
|
| March 31, 2026 |
| December 31, 2025(2) | ||||||||
($ in thousands) |
| Fair Value |
| % |
| Fair Value |
| % | ||||
Long Agency RMBS: |
|
|
|
|
|
|
|
| ||||
Fixed rate |
| $ | 196,756 |
| 99.7 | % |
| $ | 203,077 |
| 99.7 | % |
Reverse mortgages |
|
| 560 |
| 0.3 | % |
|
| 556 |
| 0.3 | % |
Total long Agency RMBS |
| $ | 197,316 |
| 100.0 | % |
| $ | 203,633 |
| 100.0 | % |
(1) | This information does not include U.S. Treasury securities, securities sold short, or financial derivatives. | |
(2) | Conformed to current period presentation. Agency IO's are included in Other RMBS in the credit portfolio table above. |
Longbridge Portfolio
Longbridge originates reverse mortgage loans, including (i) home equity conversion mortgage loans, or "HECMs," which are insured by the FHA, and (ii) "proprietary reverse mortgage loans," which are not insured by the FHA. HECMs are eligible for inclusion in GNMA-guaranteed HECM-backed MBS, or "HMBS." Upon securitization, the HECMs remain on our balance sheet under GAAP. We have securitized some of the proprietary reverse mortgage loans originated by Longbridge, and we have retained certain of the securitization tranches in compliance with credit risk retention rules. Longbridge has typically retained the MSRs associated with the loans it has originated. Longbridge also originates home equity lines of credit, or "HELOCs," designed for homeowners aged 62 or older.
The following table summarizes loan-related assets(1) in the Longbridge segment as of March 31, 2026 and December 31, 2025:
|
| March 31, 2026 |
| December 31, 2025 | ||||
|
| (In thousands) | ||||||
HMBS assets(2) |
| $ | 10,893,878 |
|
| $ | 10,524,652 |
|
Less: HMBS liabilities |
|
| (10,765,668 | ) |
|
| (10,406,332 | ) |
HMBS MSR(3) |
|
| 128,210 |
|
|
| 118,320 |
|
Unsecuritized HECM loans(4) |
|
| 172,860 |
|
|
| 174,046 |
|
Proprietary reverse mortgage loans(5)(6) |
|
| 1,974,539 |
|
|
| 1,687,801 |
|
Reverse MSRs |
|
| 30,192 |
|
|
| 28,913 |
|
Unsecuritized REO(6) |
|
| 5,702 |
|
|
| 4,742 |
|
Total |
|
| 2,311,503 |
|
|
| 2,013,822 |
|
Less: Non-retained tranches of consolidated securitization trusts |
|
| 1,616,404 |
|
|
| 1,396,607 |
|
Total, excluding non-retained tranches of consolidated securitization trusts |
| $ | 695,099 |
|
| $ | 617,215 |
|
(1) | This information does not include financial derivatives or loan commitments. | |
(2) | Includes HECM loans, related REO, and claims or other receivables. | |
(3) | When Longbridge pools HECM loans into HMBS, such transfers do not qualify as sales under U.S. GAAP, and as a result, such transactions are treated as secured borrowings on our Consolidated Balance Sheet; the pooled HECM loans are included in Loans, at fair value, and the related liabilities are reflected as HMBS-related obligations, at fair value. After pooling the HECM loans into HMBS, Longbridge retains the mortgage servicing rights associated with such HECM loans (the "HMBS MSR"). | |
(4) | As of March 31, 2026, includes $21.7 million of active HECM buyout loans, $19.9 million of inactive HECM buyout loans, and $6.6 million of other inactive HECM loans. As of December 31, 2025, includes $28.5 million of active HECM buyout loans, $19.0 million of inactive HECM buyout loans, and $6.1 million of other inactive HECM loans. | |
(5) | As of March 31, 2026, includes $1.6 billion of securitized proprietary reverse mortgage loans and related REO, $26.2 million of cash held in a securitization reserve fund, and $13.9 million of investment related receivables. As of December 31, 2025, includes $1.4 billion of securitized proprietary reverse mortgage loans and related REO, $26.0 million of cash held in a securitization reserve fund, and $19.9 million of investment related receivables. | |
(6) | In accordance with U.S. GAAP, REO is not considered a financial instrument and as a result is included at the lower of cost or fair value. |
The following table summarizes Longbridge's origination volumes by channel for the three-month periods ended March 31, 2026 and December 31, 2025:
($ In thousands) |
| March 31, 2026 |
| December 31, 2025 | ||||||||||||
Channel |
| Units |
|
New Loan
|
|
% of New
|
| Units |
|
New Loan
|
|
% of New
| ||||
Wholesale and correspondent |
| 1,577 |
| $ | 361,697 |
| 70 | % |
| 1,668 |
| $ | 382,613 |
| 72 | % |
Retail |
| 743 |
|
| 153,677 |
| 30 | % |
| 824 |
|
| 147,119 |
| 28 | % |
Total |
| 2,320 |
| $ | 515,374 |
| 100 | % |
| 2,492 |
| $ | 529,732 |
| 100 | % |
(1) | Represents initial borrowed amounts on reverse mortgage loans. |
Financing
Key Highlights:
- Recourse Debt-to-Equity Ratio, excluding borrowings collateralized by U.S. Treasury securities, adjusted for unsettled purchases and sales: 1.9:1 as of both March 31, 2026 and December 31, 2025, as an increase in repo borrowings on our larger credit and Longbridge portfolios was roughly offset by higher total equity.
- Overall Debt-to-Equity Ratio, excluding borrowings collateralized by U.S. Treasury securities, adjusted for unsettled purchases and sales: 9.0:1 as of both March 31, 2026 and December 31, 2025.
The following table summarizes our outstanding borrowings and debt-to-equity ratios as of March 31, 2026 and December 31, 2025:
|
| March 31, 2026 |
| December 31, 2025 | ||||||
|
|
Outstanding
|
|
Debt-to-
|
|
Outstanding
|
|
Debt-to-
| ||
|
| (In thousands) |
|
|
| (In thousands) |
|
| ||
Recourse borrowings(3) |
| $ | 3,822,166 |
| 2.0:1 |
| $ | 3,614,592 |
| 1.9:1 |
Non-recourse borrowings(3) |
|
| 13,891,000 |
| 7.1:1 |
|
| 13,351,910 |
| 7.1:1 |
Total Borrowings |
| $ | 17,713,166 |
| 9.0:1 |
| $ | 16,966,502 |
| 9.1:1 |
Total Equity |
| $ | 1,957,988 |
|
|
| $ | 1,871,155 |
|
|
Recourse borrowings excluding borrowings collateralized by U.S. Treasury securities, adjusted for unsettled purchases and sales |
|
|
| 1.9:1 |
|
|
| 1.9:1 | ||
Total borrowings excluding borrowings collateralized by U.S. Treasury securities, adjusted for unsettled purchases and sales |
|
|
| 9.0:1 |
|
|
| 9.0:1 | ||
(1) | Includes borrowings under repurchase agreements, other secured borrowings, other secured borrowings, at fair value, and unsecured debt, at par. | |
(2) | Recourse and overall debt-to-equity ratios are computed by dividing outstanding recourse and overall borrowings, respectively, by total equity. Debt-to-equity ratios do not account for liabilities other than debt financings. | |
(3) | All of our 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 us or our consolidated subsidiaries. In the event of default under a recourse borrowing, the lender's claim is not limited to the collateral (if any). |
Operating Results
The following table summarizes our operating results by strategy for the three-month period ended March 31, 2026:
| Investment Portfolio |
| Longbridge |
|
Corporate/
|
| Total |
|
Per
| ||||||||||||||||||
(In thousands except per share amounts) | Credit |
| Agency |
|
Investment
|
|
|
|
| ||||||||||||||||||
Interest income and other income(1) | $ | 105,573 |
|
| $ | 1,958 |
|
| $ | 107,531 |
|
| $ | 63,111 |
|
| $ | 1,341 |
|
| $ | 171,983 |
|
| $ | 1.40 |
|
Interest expense |
| (44,799 | ) |
|
| (1,155 | ) |
|
| (45,954 | ) |
|
| (27,157 | ) |
|
| (11,391 | ) |
|
| (84,502 | ) |
|
| (0.69 | ) |
Realized gain (loss), net |
| 11,782 |
|
|
| (1 | ) |
|
| 11,781 |
|
|
| 276 |
|
|
| — |
|
|
| 12,057 |
|
|
| 0.10 |
|
Unrealized gain (loss), net |
| (31,593 | ) |
|
| (936 | ) |
|
| (32,529 | ) |
|
| 14,908 |
|
|
| 21,188 |
|
|
| 3,567 |
|
|
| 0.03 |
|
Net change from reverse mortgage loans and HMBS obligations |
| — |
|
|
| — |
|
|
| — |
|
|
| 40,928 |
|
|
| — |
|
|
| 40,928 |
|
|
| 0.33 |
|
Earnings in unconsolidated entities |
| 17,564 |
|
|
| — |
|
|
| 17,564 |
|
|
| — |
|
|
| — |
|
|
| 17,564 |
|
|
| 0.14 |
|
Interest rate hedges and other activity, net(2) |
| 23,892 |
|
|
| 1,846 |
|
|
| 25,738 |
|
|
| 6,762 |
|
|
| (5,696 | ) |
|
| 26,804 |
|
|
| 0.22 |
|
Credit hedges and other activities, net(3) |
| 20 |
|
|
| — |
|
|
| 20 |
|
|
| 411 |
|
|
| — |
|
|
| 431 |
|
|
| — |
|
Income tax (expense) benefit |
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (966 | ) |
|
| (966 | ) |
|
| (0.01 | ) |
Investment and transaction related expenses |
| (4,027 | ) |
|
| — |
|
|
| (4,027 | ) |
|
| (15,800 | ) |
|
| — |
|
|
| (19,827 | ) |
|
| (0.16 | ) |
Other expenses |
| (2,574 | ) |
|
| — |
|
|
| (2,574 | ) |
|
| (25,964 | ) |
|
| (32,008 | ) |
|
| (60,546 | ) |
|
| (0.49 | ) |
Net income (loss) |
| 75,838 |
|
|
| 1,712 |
|
|
| 77,550 |
|
|
| 57,475 |
|
|
| (27,532 | ) |
|
| 107,493 |
|
|
| 0.87 |
|
Dividends on preferred stock |
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (5,883 | ) |
|
| (5,883 | ) |
|
| (0.05 | ) |
Issuance costs of redeemed preferred stock |
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (3,966 | ) |
|
| (3,966 | ) |
|
| (0.03 | ) |
Net (income) loss attributable to non-participating non-controlling interests |
| (1,175 | ) |
|
| — |
|
|
| (1,175 | ) |
|
| — |
|
|
| (4 | ) |
|
| (1,179 | ) |
|
| (0.01 | ) |
Net income (loss) attributable to common stockholders and participating non-controlling interests |
| 74,663 |
|
|
| 1,712 |
|
|
| 76,375 |
|
|
| 57,475 |
|
|
| (37,385 | ) |
|
| 96,465 |
|
|
| 0.78 |
|
Net (income) loss attributable to participating non-controlling interests |
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (998 | ) |
|
| (998 | ) |
|
| — |
|
Net income (loss) attributable to common stockholders | $ | 74,663 |
|
| $ | 1,712 |
|
| $ | 76,375 |
|
| $ | 57,475 |
|
| $ | (38,383 | ) |
| $ | 95,467 |
|
| $ | 0.78 |
|
Net income (loss) attributable to common stockholders per share of common stock | $ | 0.61 |
|
| $ | 0.02 |
|
| $ | 0.63 |
|
| $ | 0.47 |
|
| $ | (0.32 | ) |
| $ | 0.78 |
|
|
| ||
Weighted average shares of common stock and convertible units(4) outstanding |
|
|
|
|
|
|
|
|
|
|
| 122,984 |
|
|
| ||||||||||||
Weighted average shares of common stock outstanding |
|
|
|
|
|
|
|
|
|
|
| 121,711 |
|
|
| ||||||||||||
(1) | Other income primarily consists of rental income on real estate owned, loan origination fees, and servicing income. Included in the Longbridge segment is also $17.0 million of litigation settlement 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 our operating results by strategy for the three-month period ended December 31, 2025:
|
| Investment Portfolio(1) |
| Longbridge |
|
Corporate/
|
| Total |
|
Per
| ||||||||||||||||||
(In thousands except per share amounts) |
| Credit |
| Agency |
|
Investment
|
|
|
|
| ||||||||||||||||||
Interest income and other income(2) |
| $ | 100,279 |
|
| $ | 2,069 |
|
| $ | 102,348 |
|
| $ | 42,510 |
|
| $ | 1,795 |
|
| $ | 146,653 |
|
| $ | 1.34 |
|
Interest expense |
|
| (46,619 | ) |
|
| (1,331 | ) |
|
| (47,950 | ) |
|
| (24,371 | ) |
|
| (10,983 | ) |
|
| (83,304 | ) |
|
| (0.76 | ) |
Realized gain (loss), net |
|
| 2,272 |
|
|
| (10 | ) |
|
| 2,262 |
|
|
| 60 |
|
|
| — |
|
|
| 2,322 |
|
|
| 0.02 |
|
Unrealized gain (loss), net |
|
| (19,063 | ) |
|
| 1,513 |
|
|
| (17,550 | ) |
|
| 8,927 |
|
|
| (7,905 | ) |
|
| (16,528 | ) |
|
| (0.15 | ) |
Net change from reverse mortgage loans and HMBS obligations |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 31,900 |
|
|
| — |
|
|
| 31,900 |
|
|
| 0.29 |
|
Earnings in unconsolidated entities |
|
| 18,203 |
|
|
| — |
|
|
| 18,203 |
|
|
| — |
|
|
| — |
|
|
| 18,203 |
|
|
| 0.17 |
|
Interest rate hedges and other activity, net(3) |
|
| (402 | ) |
|
| 1,339 |
|
|
| 937 |
|
|
| 1,767 |
|
|
| (661 | ) |
|
| 2,043 |
|
|
| 0.02 |
|
Credit hedges and other activities, net(4) |
|
| (4,413 | ) |
|
| — |
|
|
| (4,413 | ) |
|
| (435 | ) |
|
| — |
|
|
| (4,848 | ) |
|
| (0.05 | ) |
Income tax (expense) benefit |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (1,353 | ) |
|
| (1,353 | ) |
|
| (0.01 | ) |
Investment and transaction related expenses |
|
| (8,213 | ) |
|
| — |
|
|
| (8,213 | ) |
|
| (16,506 | ) |
|
| (5,962 | ) |
|
| (30,681 | ) |
|
| (0.28 | ) |
Other expenses |
|
| (2,663 | ) |
|
| — |
|
|
| (2,663 | ) |
|
| (27,491 | ) |
|
| (11,639 | ) |
|
| (41,793 | ) |
|
| (0.38 | ) |
Net income (loss) |
|
| 39,381 |
|
|
| 3,580 |
|
|
| 42,961 |
|
|
| 16,361 |
|
|
| (36,708 | ) |
|
| 22,614 |
|
|
| 0.21 |
|
Dividends on preferred stock |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (6,981 | ) |
|
| (6,981 | ) |
|
| (0.06 | ) |
Net (income) loss attributable to non-participating non-controlling interests |
|
| (805 | ) |
|
| — |
|
|
| (805 | ) |
|
| — |
|
|
| (4 | ) |
|
| (809 | ) |
|
| (0.01 | ) |
Net income (loss) attributable to common stockholders and participating non-controlling interests |
|
| 38,576 |
|
|
| 3,580 |
|
|
| 42,156 |
|
|
| 16,361 |
|
|
| (43,693 | ) |
|
| 14,824 |
|
|
| 0.14 |
|
Net (income) loss attributable to participating non-controlling interests |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (157 | ) |
|
| (157 | ) |
|
| — |
|
Net income (loss) attributable to common stockholders |
| $ | 38,576 |
|
| $ | 3,580 |
|
| $ | 42,156 |
|
| $ | 16,361 |
|
| $ | (43,850 | ) |
| $ | 14,667 |
|
| $ | 0.14 |
|
Net income (loss) attributable to common stockholders per share of common stock |
| $ | 0.36 |
|
| $ | 0.03 |
|
| $ | 0.39 |
|
| $ | 0.15 |
|
| $ | (0.40 | ) |
| $ | 0.14 |
|
|
| ||
Weighted average shares of common stock and convertible units(5) outstanding |
|
|
|
|
|
|
|
|
|
|
|
| 109,652 |
|
|
| ||||||||||||
Weighted average shares of common stock outstanding |
|
|
|
|
|
|
|
|
|
|
|
| 108,491 |
|
|
| ||||||||||||
Contacts
Investors:
Ellington Financial
Investor Relations
(203) 409-3575
info@ellingtonfinancial.com
or
Media:
Amanda Shpiner/Grace Cartwright
Gasthalter & Co.
for Ellington Financial
(212) 257-4170
ellington@gasthalter.com
Read full story here
