Ellington Financial Inc. (NYSE:EFC) Q2 2023 Earnings Conference Call August 8, 2023 11:00 AM ET

Company Participants

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

Doug Harter – Credit Suisse

Mikhail Goberman – JMP Securities

Eric Hagen – BTIG

Operator

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Ellington Financial Second Quarter 2023 Earnings Conference Call. Today's call is being recorded. At this time all participants have been placed in listen-only mode and the floor will be opened for your following the presentation. [Operator Instructions]

It is now my pleasure to turn the call over to Tara Byrne [ph]. You may begin.

Unidentified Company Representative

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 not historical in nature as described under Part 1, Item 1A of our annual report on Form 10-K and Part 2, Item 1A of our quarterly report on Form 10-Q for the quarter ended March 31, 2023. Forward-looking statements are subject to a variety of risks and uncertainties that could cause the company's actual results to differ from its beliefs, expectations, estimates and projections.

Consequently, you should not rely on these forward-looking statements as predictions of future events. Statements made during this conference call are made as of the date of this call, and the company undertakes no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. I am joined on the call today by Larry Penn, Chief Executive Officer of Ellington Financial; Mark Tecotzky, Co-Chief Investment Officer of EFC; and JR Herlihy, Chief Financial Officer of EFC. As described in our earnings press release, our second quarter earnings conference call presentation is available on our website, ellingtonfinancial.com. Management's prepared remarks will track the presentation. Please note that any references to figures in the presentation are qualified in their entirety by the end notes at the backs of the presentation.

With that, I will now turn the call over to Larry.

Larry Penn

Thank you, Tara, and good morning, everyone. As always, thank you for your time and interest in Ellington Financial. I'll begin on Slide 3 of the presentation. For the second quarter, we reported net income of $0.04 per share and adjusted distributable earnings of $0.38 per share. Steady performance from our non-QM, residential transition loan and commercial mortgage bridge loan portfolios, combined with notably strong performance from our credit risk transfer investments, offset net losses elsewhere in the portfolio, and Ellington Financial generated a modestly positive economic return overall.