Q3 2024 Ellington Financial Inc Earnings Call Transcript
Key Points
- Ellington Financial Inc (EFC) reported an increase in adjusted distributable earnings to $0.40 per share, covering the $0.39 dividend for the quarter.
- The Longbridge segment showed significant improvement, contributing $0.12 per share to adjusted distributable earnings, driven by a successful proprietary reverse mortgage securitization.
- EFC's investment portfolio expanded, with high-yielding loan portfolios increasing by 26%, supported by strong balance sheet utilization.
- The company successfully executed multiple securitizations, including non-QM and proprietary reverse mortgage deals, achieving favorable financing terms.
- EFC added new financing lines, enhancing its ability to replace higher-cost debt and improve earnings through cost-effective refinancing.
- The Longbridge segment reported a GAAP net loss of $0.03 per share due to interest rate hedges, despite strong origination results.
- EFC faced net losses on its consumer loan portfolio and a related equity investment, impacting overall earnings.
- Operating expenses increased by 18% over the quarter, driven in part by one-time employee option redemptions at Longbridge.
- The percentage of delinquent loans increased in the commercial mortgage loan portfolio, with some loans moving to 90+ day delinquencies.
- EFC's overall leverage increased to 1.8 times from 1.6 times, raising concerns about potential risks associated with higher leverage.
Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Ellington Financial Third Quarter 2024 Earnings Conference Call. Today's call is being recorded. At this time, all participants have been placed in a listen only mode. The floor will be open for your questions following the presentation. (Operator Instructions)
It is now my pleasure to turn the call over to Alaael-Deen Shilleh. You may begin.
Thank you. Before we start, I would like to remind everyone that certain statements made during this conference call may constitute forward-looking statements within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are non-historical in nature. As described under Item 1A of our annual report on Form 10-K and Part 2, Item 1A of our quarterly report on Form 10-Q.
Forward-looking statements are subject to a variety of risks and uncertainties that could cause the
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
