Financial Performance - Net income attributable to common stockholders for Q3 2024 was $16.2 million, or $0.19 per common share, with $44.0 million from the investment portfolio[1]. - Adjusted Distributable Earnings increased to $34.5 million, or $0.40 per common share, covering dividends[2]. - Net income attributable to common stockholders for the three-month period ended September 30, 2024, was $39,198,000, compared to $4,801,000 for the same period in 2023[24]. - The company reported a net income of $60,072,000 after accounting for preferred stock dividends and other expenses[25]. - Net income attributable to common stockholders was $67,996,000, resulting in a per share amount of $0.80[26]. - Total net income for the same period was $23,323,000, compared to $60,072,000 in the prior quarter, reflecting a decrease of approximately 61%[32]. - The net income (loss) for the same period was $23.323 million, a decrease from $60.072 million in the prior quarter, indicating a decline of about 61.2%[43]. Investment Portfolio - The investment portfolio expanded by 26%, driven by growth in non-QM loans, residential transition loans, and commercial mortgage bridge loans[3]. - Total interest income and other income for the investment portfolio was $104,348,000, with a per share amount of $1.22[25]. - The company’s investment portfolio generated a net income of $44.115 million for the three-month period ended September 30, 2024, down from $69.476 million in the previous quarter, a decrease of about 36.5%[43]. Assets and Liabilities - Total assets increased to $15,953,290,000 as of September 30, 2024, up from $15,092,653,000 at the end of the previous quarter, representing a growth of approximately 5.7%[34]. - Total liabilities increased to $14,327,641,000, up from $13,518,794,000 in the previous quarter, marking a rise of approximately 6%[34]. - Loans at fair value rose to $13,519,786,000, compared to $12,846,106,000 in the prior quarter, indicating an increase of about 5.2%[34]. Equity and Shares - The total equity increased to $1,625,649,000 as of September 30, 2024, from $1,573,859,000 on June 30, 2024[23]. - The weighted average shares of common stock outstanding were 88,039,000 as of September 30, 2024[24]. - The weighted average shares of common stock outstanding increased to 87,198,000 from 85,045,000 in the previous quarter[32]. - The book value per common share decreased to $13.66 from $13.92 in the previous quarter[35]. Dividends - The dividend yield was 13.1% based on the closing stock price of $11.95 per share on November 5, 2024[2]. - The company’s Board of Directors considers earnings, liquidity, financial condition, and REIT distribution requirements when setting dividends[41]. - The total dividends on preferred stock for the three-month period ended September 30, 2024, were $6.833 million, consistent with the previous quarter[44]. Loan Performance - The percentage of delinquent loans in the residential mortgage loan portfolio decreased, while the commercial mortgage loan portfolio saw an increase[9]. - The Longbridge segment reported $8,890,459,000 in HMBS assets as of September 30, 2024, compared to $8,926,658,000 on June 30, 2024[19]. - New loan origination volume for the Longbridge segment was $354,740,000 for the three-month period ended September 30, 2024, up from $304,538,000 for the period ended June 30, 2024[20]. Interest and Expenses - The net interest margin on the credit portfolio decreased to 2.64% from 2.76%[10]. - Interest expense totaled $63,123,000, indicating a significant cost associated with financing[25]. - Investment-related expenses were reported at $11,087,000, impacting overall profitability[25]. - The company incurred $5.418 million in non-capitalized transaction costs and other expense adjustments for the three-month period ended September 30, 2024[43]. Forward-Looking Statements - Forward-looking statements indicate potential risks including changes in interest rates and market conditions that could affect future performance[30]. Conference Call - The conference call to discuss financial results for the quarter ended September 30, 2024, is scheduled for November 7, 2024[29].

You can get access to everything we have to offer right now. Try our service and decide for yourself. I will be going over a preferred share from Ellington Financial (NYSE: EFC ). While we will be covering the Q3 2024 earnings release (when it happens), we did not post a Q2 2024 article for the public. Therefore, I'm going to Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. ...

In the retirement phase of my investing life, my interests have shifted from accumulation mode to a more income-focused approach that I call my Income Compounder portfolio. As an income-oriented investor, my monthly paycheck comes from dividends and distributions that are paid Now retired, I am an income-oriented investor seeking high yield income to support my lifestyle in retirement.I became deeply interested in the stock market beginning in late 2007 (bad timing for me but worse for my uncle) when I rece ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-34569 Ellington Financial Inc. (Exact Name of Registrant as Specified in Its Charter) Delaware 26-0489289 (State or Other ...

Ellington Financial Inc. (NYSE:EFC) Q2 2024 Results Conference Call August 7, 2024 11:00 AM ET Company Participants Alaael-Deen Shilleh - Associate General Counsel and Secretary Larry Penn - Chief Executive Officer JR Herlihy - Chief Financial Officer Mark Tecotzky - Co-Chief Investment Officer Conference Call Participants Bose George - KBW Crispin Love - Piper Sandler Douglas Harter - UBS Eric Hagen - BTIG Matthew Erdner - JonesTrading Lee Cooperman - Omega Family Office Operator Good morning, ladies and g ...

Exhibit 99.1 Ellington Financial Inc. Reports Second Quarter 2024 Results OLD GREENWICH, Connecticut—August 6, 2024 Ellington Financial Inc. (NYSE: EFC) ("we," "us," or "our") today reported financial results for the quarter ended June 30, 2024. Highlights • Net income attributable to common stockholders of $52.3 million, or $0.62 per common share. 1 ◦ $69.1 million, or $0.81 per common share, from the investment portfolio. ▪ $68.0 million, or $0.80 per common share, from the credit strategy. ▪ $1.1 million ...

p I te with Introduction Microsoft Excel API Companies that utilize leverage to lend have been battling higher borrowing costs and struggling to grow their earnings to keep up with higher interest rates. Fortunately, Ellington Financial's interest income has grown at a faster pace than its interest expense. Net interest income (interest income less interest expense) grew by $3.5 million or more than 10% to $31 million in the first quarter. Unfortunately, the increase in net interest income was more than off ...

Mortgage real estate investment trusts, or mREITs, have been a tough investment in this rate environment. One name that has held up in the space is Ellington Financial Inc. (NYSE:EFC), and it is well positioned for when rates normalize and the housing industry rebounds, in our opinion. We still like income names to comprise about 20% of your long-term portfolio. Within those long-term income holdings, we endorse having dividend paying names, blended with dividend growth, and/or high-yield. Now we got some b ...

Ownership and Acquisitions - As of March 31, 2024, Ellington Financial Inc. had an ownership interest of approximately 99.3% in its Operating Partnership[431]. - The company completed the acquisition of a controlling interest in Longbridge Financial, LLC on October 3, 2022, and a merger with Arlington Asset Investment Corp. on December 14, 2023[434]. Investment Portfolio - The investment portfolio includes residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), consumer loans, and asset-backed securities (ABS)[435]. - Agency RMBS assets consist primarily of whole pool and partial pool pass-through certificates, guaranteed by U.S. government agencies[441]. - The targeted asset classes include investments in U.S. and European markets, focusing on Agency RMBS, CMBS, consumer loans, and corporate CLOs[438]. - The company has a diverse array of financial assets, including investments in mortgage servicing rights and strategic investments in loan originators[440]. Financial Strategies - The company employs strategies to capitalize on market opportunities, adjusting asset allocations based on credit and liquidity trends[437]. - The strategies include opportunistic hedging of credit risk, interest rate risk, yield spread risk, and foreign currency risk, depending on market conditions[437]. - The company engages in TBA transactions to manage risks associated with investment strategies, utilizing these transactions as hedging instruments against interest rate and yield spread risks[465][466]. Loan and Mortgage Details - The majority of CMBS acquired utilize senior/subordinate structures, focusing on B-pieces for higher yields[445]. - As of March 31, 2024, all commercial mortgage loans held by the company were first-lien loans, with maturities ranging from one to ten years[448]. - The company focuses on acquiring smaller balance loans, typically less than $30 million, which are secured by real estate and may include personal guarantees from borrowers[449]. - The U.S. consumer loan portfolio consists of unsecured loans and secured auto loans, with ongoing purchases of newly originated consumer loans under flow agreements[450]. - The company is active in the market for residential non-performing loans (NPLs) and re-performing loans (RPLs), focusing on less-competitively-bid mixed legacy pools[459]. Financial Performance - Net income attributable to common stockholders for the three-month period ended March 31, 2024, was $26.9 million, with a net income per common share of $0.32[554]. - The company reported net interest income of $31.1 million for the three-month period ended March 31, 2024[554]. - Total other income for the same period was $44.5 million, which included realized and unrealized gains on financial derivatives of $33.8 million[554]. - The company reported a net income per common share of $0.61 for the three-month period ended March 31, 2024, down from $0.58 in the same period in 2023[556]. - For the three-month period ended March 31, 2024, total net income was $34,051,000, compared to $44,750,000 for the same period in 2023, representing a decrease of approximately 24%[603]. Interest Rates and Borrowing - The average cost of funds on secured financings increased to 5.78% for the three-month period ended March 31, 2024, compared to 5.69% for the previous period[519]. - The average borrowing rate on unsecured financings increased to 6.14% for the three-month period ended March 31, 2024, from 5.85% in the previous period[519]. - The company retained mortgage servicing rights associated with HMBS and proprietary reverse mortgage loans, contributing to its Reverse MSR-related Net Assets[503]. - As of March 31, 2024, total recourse borrowings amounted to $2,996.3 million, down from $3,510.9 million as of December 31, 2023, resulting in a debt-to-equity ratio of 1.9:1[514]. Market Conditions - The S&P CoreLogic Case-Shiller US National Home Price NSA Index increased by 0.5% in the first two months of 2024, following a 5.5% rise in 2023[474]. - U.S. real GDP grew at an estimated annualized rate of 1.6% in Q1 2024, down from 3.4% in the previous quarter, while the unemployment rate averaged 3.8% during the same period[474]. - The Federal Reserve maintained its target federal funds rate at 5.25%–5.50% in January and March 2024, indicating potential policy adjustments later in the year[474]. Asset Valuation - The fair value of the consolidated investment portfolio as of March 31, 2024, is $14,308,343,000, compared to $14,156,428,000 as of December 31, 2023, reflecting an increase of approximately 1.07%[533]. - The fair value of investments in unconsolidated entities totaled approximately $125.37 million as of March 31, 2024[492]. - The total fair value of Forward MSR-related investments was approximately $160.01 million[492]. Equity and Dividends - Equity increased by $17.5 million to $1.553 billion as of March 31, 2024, driven by net income of $34.1 million and net proceeds from common stock issuance of $26.9 million[552]. - Preferred stock dividends for the current period totaled $6,654,000, compared to $5,117,000 in the previous year[603]. Adjusted Distributable Earnings - Adjusted Distributable Earnings is calculated as U.S. GAAP net income adjusted for various components, providing a useful indicator of long-term financial performance and dividend-paying ability[598]. - Adjusted distributable earnings for the same period were $30,819,000, down from $35,990,000 in 2023, indicating a decline of about 14%[603]. - Adjusted distributable earnings attributable to common stockholders were $23,726,000 for the current period, down from $30,300,000 in the prior year[603].

Financial Data and Key Metrics Changes - The company reported net income of $0.32 per share and adjusted distributable earnings (ADE) of $0.28 per share for Q1 2024, with the credit strategy contributing $0.48 per share of net income [14][18] - The total loan credit portfolio increased by 2% to $2.8 billion as of March 31, driven by larger residential transition loan and commercial mortgage bridge loan portfolios [22] - The recourse debt to equity ratio decreased to 1.8:1 at March 31, down from 2:1 at year-end, indicating improved leverage management [25] Business Line Data and Key Metrics Changes - The credit strategy generated $0.48 per share of GAAP net income, primarily from strong net interest income and gains on non-Agency RMBS [7][14] - The Agency strategy generated a modest $0.03 per share of GAAP net income, despite lower interest rate volatility [20] - Longbridge generated $0.10 per share of GAAP net income, although adjusted earnings were slightly negative after excluding certain gains [4][21] Market Data and Key Metrics Changes - The total long Agency RMBS portfolio declined by 22% sequentially to $663 million, reflecting a strategic shift towards higher yielding opportunities [23] - Longbridge originated $205 million across HECM and proprietary loans, a 22% decline from the previous quarter, with a shift in origination channels [24][50] Company Strategy and Development Direction - The company is focusing on expanding its proprietary reverse mortgage business and has initiated a securitization program for these loans [5][29] - There is an emphasis on capitalizing on opportunities in the commercial real estate sector, particularly through the acquisition of non-performing loans at discounts [28][32] - The company aims to balance near-term earnings growth with maintaining capital for opportunistic investments [61] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for growth in closed-end seconds and HELOCs, driven by homeowners' substantial equity and low existing mortgage rates [6][43] - The company is well-positioned for a higher for longer interest rate environment, leveraging its hedging expertise and short-duration high-yielding loan portfolios [36][63] - Management expects Longbridge to contribute positively to ADE in the second quarter, with origination volumes ahead of projections [41][35] Other Important Information - The company completed its first non-QM securitization in 14 months, taking advantage of favorable market conditions [17] - The total economic return for the first quarter was positive at 2.1%, indicating a stable performance despite market challenges [26] Q&A Session Summary Question: Can you provide more details on sourcing closed-end seconds and HELOCs? - Management indicated that these products are primarily sourced from existing proprietary originator relationships, focusing on borrowers with agency first lien mortgages [66][85] Question: What is the company's comfort level regarding the dividend? - Management expressed confidence in maintaining the current dividend level, which is expected to remain stable for some time [69] Question: What is the company's strategy regarding regional banks' involvement in the RTL and commercial transitional space? - Management noted that regional banks lack the necessary expertise for heavy underwriting in this sector, which has allowed the company to maintain its competitive edge [73][74] Question: How does the company hedge against interest rate risks? - Management confirmed that they utilize a combination of interest rate hedges and credit hedges to mitigate risks associated with their portfolios [78][79]