![]() ![]() In the first quarter, the Company's total long credit portfolio, excluding non-retained tranches of consolidated non-QM securitization trusts, decreased by 5% sequentially to $2.426 billion as of March 31, 2023, driven by a smaller commercial mortgage loan portfolio, as loan paydowns significantly exceeded new originations in that portfolio, and a smaller non-QM loan portfolio, following the completion of a non-QM securitization in February in which the Company participated. The Company's investment portfolio generated net income attributable to common stockholders of $40.9 million, consisting of $35.5 million from the credit strategy and $5.3 million from the Agency strategy. I believe that we are well positioned to take advantage of the opportunities that we will find as the year unfolds." In addition, while the credit performance of our loan portfolios continues to be strong, with recession fears looming we continue to tighten our underwriting criteria with an emphasis on keeping LTVs low and being highly selective on geography and property type. However, given the prospect of very significant asset sales from various troubled regional banks, we are being patient with capital deployment. "We finished the first quarter with reduced leverage and a meaningful amount of dry powder available to invest. In addition, with our share price trading at a significant discount to book value per share in March, we opportunistically repurchased our common shares at highly accretive levels. So far, most of the capital that we have put to work has been directed towards our loan businesses this included the secondary market purchase of a portfolio of reverse mortgage loans at what we believe to be distressed prices. "In early February, we capitalized on a narrow window of market stability by participating in our first non-QM securitization of the year at attractive economics, and also by raising $100 million of preferred equity, both of which positioned us well going into the heightened volatility of March. "Despite the market volatility in March, EFC generated an economic return of 3.3% for the quarter, and sequentially increased both book value per share and Adjusted Distributable Earnings, which covered our dividend. Longbridge Financial also had an excellent quarter, led by strong gain on sale margins on new originations and mark-to-market gains on the HMBS MSR and proprietary loan portfolios," said Laurence Penn, Chief Executive Officer and President of Ellington Financial. "During the first quarter, we had strong performance in our non-QM, residential transition loan, small-balance commercial mortgage, and Agency MBS portfolios. Issued 4.0 million shares of Series C preferred stock. Including all non-recourse borrowings, which primarily consist of securitization-related liabilities, debt-to-equity ratio of 9.0:1.Ĭash and cash equivalents of $188.6 million as of March 31, 2023, in addition to other unencumbered assets of $429.1 million. Recourse debt-to-equity ratio 3 of 2.1:1 as of March 31, 2023. $6.5 million, or $0.10 per common share, from Longbridge.Īdjusted Distributable Earnings 2 of $30.3 million, or $0.45 per common share.īook value per common share as of Maof $15.10, including the effects of dividends of $0.45 per common share for the quarter.ĭividend yield of 14.9% based on the closing stock price of $12.05 per share, and monthly dividend of $0.15 per common share declared on April 10, 2023. $5.3 million, or $0.08 per common share, from the Agency strategy. $35.5 million, or $0.53 per common share, from the credit strategy. $40.9 million, or $0.61 per common share, from the investment portfolio. Net income attributable to common stockholders of $38.9 million, or $0.58 per common share. (NYSE: EFC) (the "Company") today reported financial results for the quarter ended March 31, 2023. OLD GREENWICH, Conn.-( BUSINESS WIRE)-Ellington Financial Inc. ![]()
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