Ellington Financial Inc. reported significant financial performance improvements for the three and nine-month periods ending September 30, 2024, compared to the same periods in 2023. The company achieved net interest income of $33.6 million for Q3 2024, up from $27.5 million in Q3 2023, and $98.3 million for the nine-month period, compared to $79.7 million in the prior year. Total interest income for Q3 2024 was $107.3 million, an increase from $96.2 million in Q3 2023, driven by higher yields in the credit portfolio and increased interest income from the Longbridge segment, which rose to $14.6 million from $5.2 million.

The company reported net income of $23.3 million for Q3 2024, compared to $13.1 million in Q3 2023, with net income attributable to common stockholders increasing to $16.2 million from $6.6 million. For the nine-month period, net income was $117.4 million, up from $68.6 million in 2023. The increase in profitability was attributed to strong performance in the Investment Portfolio Segment, which generated $156.8 million in net income, despite losses in the Longbridge Segment and Corporate/Other.

Total expenses for Q3 2024 were $50.9 million, up from $39.5 million in Q3 2023, reflecting higher operating costs associated with the Longbridge segment. The company’s total assets increased to $16.0 billion as of September 30, 2024, from $15.3 billion at the end of 2023, while total liabilities rose to $14.3 billion from $13.8 billion.

Strategically, Ellington Financial completed a merger with Arlington Asset Investment Corp. on December 14, 2023, and acquired a controlling interest in Longbridge Financial, LLC on October 3, 2022, which has since been consolidated into its financial results. The company also executed a buyout of Longbridge's minority holders' interests in September 2024, making it a wholly owned subsidiary.

The company’s capital structure was bolstered by issuing 5.6 million shares under its Common ATM Program, generating $72.7 million in net proceeds during Q3 2024. As of September 30, 2024, Ellington Financial had $1.6 billion in total equity, reflecting an increase from $1.5 billion at the end of 2023. The debt-to-equity ratio improved to 8.5:1 from 8.7:1, indicating a slight reduction in leverage.

Overall, Ellington Financial's performance in Q3 2024 demonstrated robust growth in net income and interest income, alongside strategic acquisitions and a solid capital position, despite rising expenses and challenges in certain segments.