- Average loans increased by an annualized 2.1% and customer deposits by 3.1% sequentially.
- Common Equity Tier 1 ratio stood at 11.3%, with tangible book value per share growing 17% year-over-year.
- Customer fees, excluding net credit valuation adjustment, grew by $10 million sequentially, with adjusted expenses declining by $1 million.
- Diluted earnings per share was $1.48, down from $1.63 in the prior quarter but up from $1.37 a year ago, impacted by credit valuation adjustments and elevated credit provisions.
- Efficiency ratio improved to 59.6%, reflecting positive operating leverage as revenue growth outpaced expense growth.
- Net charge-offs totaled $56 million or 37 basis points annualized, largely driven by a $50 million charge-off related to two specific C&I loans.
- Net interest margin expanded by 11 basis points sequentially to 3.28%, marking the seventh consecutive quarter of margin improvement.
- Provision for credit losses was $49 million, reducing allowance for credit losses by $7 million relative to prior quarter.
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- Capital ratios showed slight changes: Tier 1 leverage capital ratio increased to 11.07%, risk-based capital ratios decreased slightly.
- Diluted earnings per share increased 12.2% to $1.10 in Q2 2025 from $0.98 in Q1 2025.
- Effective tax rate decreased to 19.56% from 19.82%, with updated guidance to 18.5%-19% due to California tax legislation.
- Net charge-offs increased to $12.7 million in Q2 2025 from $2 million in Q1 2025, including a large commercial loan charge-off.
- Net income for Q2 2025 was $77.4 million, an 11.4% increase from $69.5 million in Q1 2025.
- Net interest margin increased slightly from 3.25% to 3.27% due to lower cost of funds.
- Noninterest expense increased by 4% to $89.1 million, mainly due to housing amortization and professional expenses.
- Noninterest income increased by $4.2 million to $15.4 million, driven by foreign exchange and derivative fee income.
- Provision for credit losses decreased to $11.2 million in Q2 2025 from $15.5 million in Q1 2025.
- Total gross loans increased by $432 million or 8.9% annualized, driven by commercial, commercial real estate, and residential loans.
- Book value per share increased quarter-over-quarter to $13.49.
- Combined cash and unencumbered assets increased to about $920 million, more than 50% of total equity.
- Ellington Financial reported GAAP net income of $0.45 per share and adjusted distributable earnings (ADE) of $0.47 per share in Q2 2025.
- Leverage ratios remained stable with recourse debt-to-equity at 1.7:1 and overall debt-to-equity at 8.7:1 including securitizations.
- Longbridge segment contributed $0.13 per share to ADE, driven by strong origination volumes, securitization gains, and servicing income.
- Net interest margin (NIM) on the credit portfolio increased by 21 basis points, while the NIM on Agency decreased by 17 basis points.
- Portfolio size remained roughly unchanged quarter-over-quarter with growth in mortgage loan portfolios offset by securitizations and tactical sales.
- The company achieved an annualized economic return of nearly 14% and a total economic return of 3.3% for the quarter (non-annualized).
- Compensation, general, administrative, and servicing expenses were marginally lower, with transaction expenses down by $5 million.
- Earnings available for distribution were $32.1 million or $0.39 per share, and economic net interest income was $69 million.
- Economic return on GAAP book value was 0.5% for the quarter and 9.8% year-to-date; economic net interest income return on average equity was 10.5%.
- GAAP net income for Q2 2025 was $14 million or $0.17 per share, with GAAP book value at $20.91 per share.
- Total leverage was 4.5:1, with recourse leverage at 1.8:1, increased due to higher investments in agency securities.
- Yield on average interest-earning assets was 6%, average cost of funds was 4.5%, resulting in a net interest spread of 1.5%.
- Commercial loan growth was $114 million for the first 6 months of 2025, an annualized rate of 6.2%, despite $154 million in loan reductions primarily from asset sales.
- Deposit base increased 13% year-over-year, reducing the loan-to-deposit ratio from 107% to just under 100%.
- Effective tax rate was reduced to about 13% in Q2 2025 due to acquisition of transferable energy tax credits, lowering federal income tax expense by $1.5 million.
- Mortgage banking income increased 23.4% for the first 6 months of 2025 compared to the same period in 2024.
- Net income for Q2 2025 was $22.6 million or $1.39 per diluted share, up from $18.8 million or $1.17 per diluted share in Q2 2024.
- Net income for the first 6 months of 2025 was $42.2 million or $2.60 per diluted share, compared to $40.3 million or $2.50 per diluted share in the prior year period.
- Net interest income increased by $2.4 million in Q2 and $3.6 million in the first 6 months of 2025 compared to prior year periods.
- Net interest margin declined 14 basis points year-over-year in Q2 2025 but improved sequentially from Q1 2025.
- Noninterest expenses increased due to higher salary, benefits, data processing costs, and new product introductions.
- Provision expense was $1.6 million in Q2 and $3.7 million in the first 6 months, reflecting increased allocations for stressed loans and economic forecast changes.
- Capital ratios increased quarter-over-quarter and the company remains well capitalized by all measures.
- Cost of deposits declined by 12 basis points to 2.01%, and loan yields were impacted by lower purchase loan accretion.
- Efficiency ratio improved to 58.7% in Q2 2025 from 60.5% in Q1 2025, excluding merger-related expenses.
- Fee income increased by $1.3 million quarter-over-quarter, representing 21% of operating revenue, led by wealth management fees.
- GAAP earnings were strong despite lingering merger-related expenses, with core earnings increasing.
- Net interest margin (NIM) increased to 4.07% in Q2 2025 from 4.00% in Q1 2025, with potential for further upside.
- Noninterest expense declined by approximately $600,000 in the quarter, including merger-related expenses and severance costs.
- Normalized EPS reached 1.04, adjusted ROA was 1.51%, and adjusted ROE was 15.1%, placing the company near the top of its peer group.
- Return on average assets was 1.51% and return on average equity was 15.12% for Q2 2025, up from 1.45% and 14.97% in Q1 2025 respectively.
- Total loans grew to $3.93 billion with commercial loans growing 2% annualized; deposits declined by $117 million.
- Adjusted earnings per share reached a record $1.31, up 70% versus Q3 2024.
- Adjusted pretax margins exceeded 51%, reflecting strong expense management and revenue growth.
- Client margin balances hit a record $97.2 billion, up 16% from year-end 2024.
- Net interest revenue increased 37% year-over-year, driven by loan growth and securities lending.
- Pledged Asset Line (PAL) balances grew 37% year-over-year to $23.4 billion.
- Returned $2.7 billion in common stock repurchases during the quarter, totaling $8.5 billion year-to-date.
- Supplemental borrowings reduced by $13 billion in Q3, now at $14.8 billion, 85% below May 2023 peak.
- Third quarter revenue grew 27% year-over-year to a record $6.1 billion.
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