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Ellington Credit Company (EARN-1.34%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing indicates a strategic shift in the company's investment focus towards corporate collateralized loan obligations (CLOs), with plans to convert to a closed-end fund, subject to shareholder approval.
Ellington reported a net income of $5.4 million for the quarter, compared to a net loss of $11.4 million in the same period the previous year.
The company's total assets decreased to $752.3 million from $945.7 million at the end of 2023, reflecting a reduction in Agency RMBS holdings.
Interest income for the quarter was $12.5 million, up from $11.3 million in the previous year, driven by higher asset yields and increased CLO holdings.
Interest expense decreased to $7.8 million from $12.3 million, primarily due to lower borrowings and reduced leverage on CLO investments.
Ellington's total liabilities decreased to $560.7 million from $809.5 million at the end of 2023, with repurchase agreements accounting for the majority of the liabilities.
The company reported a book value per share of $6.85, down from $7.32 at the end of 2023, with an economic return of 2.6% for the quarter.
Ellington's debt-to-equity ratio was 2.5:1 as of September 30, 2024, compared to 5.4:1 at the end of 2023, reflecting a strategic reduction in leverage.
The filing details the company's hedging strategies, including the use of interest rate swaps and TBAs to mitigate interest rate risk.
Ellington's management agreement was amended to align management fees with the advisory fee structures of CLO-focused registered closed-end funds.
The company declared monthly dividends of $0.08 per share during the quarter and announced future dividends for October and November 2024.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Ellington Credit Company of Beneficial Interest quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.