Ownership and Acquisitions - As of September 30, 2024, Ellington Financial Inc. had an ownership interest of approximately 99.3% in its Operating Partnership[454]. - 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[457]. Investment Portfolio - The investment portfolio includes a diverse array of financial assets such as residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), and collateralized loan obligations (CLOs)[458]. - Agency RMBS assets primarily consist of whole pool and partial pool pass-through certificates, guaranteed by U.S. government agencies[464]. - The company focuses on maintaining its qualification as a REIT and its exclusion from registration under the Investment Company Act[452]. - The U.S. consumer loan portfolio includes unsecured loans and secured auto loans, with ongoing purchases of newly originated and seasoned consumer loans[473]. - The company has consolidated Longbridge, which acquires reverse mortgage loans and pools them into HMBS, retaining servicing rights[486]. - The company actively participates in the market for residential non-performing loans (NPLs) and re-performing loans (RPLs), focusing on less-competitively bid mixed legacy pools[483]. Investment Strategies - The company employs strategies to capitalize on market opportunities, adjusting asset allocations based on credit and liquidity trends[460]. - The investment strategy includes opportunistic hedging of credit risk, interest rate risk, and foreign currency risk, depending on market conditions[460]. - The company aims to generate attractive, risk-adjusted total returns for stockholders through an opportunistic investment strategy[453]. Financial Performance - Net income attributable to common stockholders for the three-month period ended September 30, 2024, was 6.6 million for the same period in 2023, driven by increases in total other income and net interest income[582]. - Interest income for the three-month period ended September 30, 2024, was 96.2 million for the same period in 2023, reflecting higher coupon payments and accrued interest[583]. - The company reported total other income of 120.3 million[619]. - Net income attributable to common stockholders for the nine-month period ended September 30, 2024, was 1.12[619]. Borrowings and Debt Management - As of September 30, 2024, total outstanding borrowings under repos and other secured borrowings amounted to 346.2 million related to Agency RMBS holdings[542]. - The total recourse borrowings increased to 2.82 billion as of June 30, 2024[543]. - The overall debt-to-equity ratio based on total recourse and non-recourse borrowings, excluding U.S. Treasury securities, increased to 8.3:1 as of September 30, 2024, compared to 8.2:1 as of June 30, 2024[546]. - Unsecured borrowings totaled 3.25 billion as of September 30, 2024, from 593,075,000, with performing loans valued at 86,541,000[512]. - The total unpaid principal balance of residential mortgage loans was 2,256,738,000 and residential transition loans at 50.9 million, reflecting an increase compared to the previous year[579]. - The gross base management fee for the three-month period ended September 30, 2024, was 5.0 million in 2023, attributed to a larger capital base[602]. - Other investment related expenses increased to 9.6 million in 2023, reflecting higher servicing fees and legal expenses[603]. Longbridge Segment Performance - Longbridge's net loss attributable to common stockholders was driven by net losses on interest rate hedges, partially offset by positive results in originations[536]. - New loan origination volume for Longbridge was 304.54 million in the previous quarter[538]. - Interest income from the Longbridge segment increased significantly to 5.2 million in 2023, driven by larger average holdings of proprietary reverse mortgage loans[591].
Ellington Financial(EFC) - 2024 Q3 - Quarterly Report