Ellington Financial reports Q1 adjusted EPS 39c, consensus 39c

Book value per common share was $13.44, including the effects of dividends of 39c per common share for the quarter. “Ellington Financial’s (EFC) Q1 results reflect continued strength in our diversified residential and commercial mortgage loan portfolios, and ongoing momentum in our securitization platform,” said CEO Laurence Penn. “Our loan businesses continued to generate steady growth and income, particularly in commercial mortgage bridge loans, non-QM loans, proprietary reverse mortgage loans, and closed-end second lien loans. In addition, we accessed the securitization markets opportunistically in Q1…we expect that by the end of Q2 quarter we will only have one significant remaining workout asset detracting from our adjusted distributable earnings. The high current levels of volatility are recharging the opportunity set and creating compelling trading opportunities; this is an environment that we believe is well-suited to our core strengths…In fact, we had already built up our credit hedges considerably since mid-2024, and profits on those credit hedges in April 2025 more than offset any valuation declines we saw in the long portfolio. Despite the widespread market weakness in April, we estimate that our economic return was still positive for the month.”