# Ellington Credit Company (EARN) Q1 2025 Financial Results Summary
**Release Date:** August 19, 2025
Ellington Credit Company (NYSE: EARN) has announced its financial results for the first fiscal quarter ended June 30, 2025. Below are the key highlights and metrics from the report:
### Financial Metrics
– **Net Asset Value (NAV) per Share**
– June 30, 2025: $6.12
– March 31, 2025: $6.08
– **Change:** Increase of **0.7%**
– **GAAP Net Income**
– Total: $10.2 million
– Per Share: $0.27
– **Net Investment Income (NII)**
– Total: $6.5 million
– Per Share: $0.17
– **Adjusted Net Investment Income**
– Total: $6.6 million
– Per Share: $0.18
– **CLO Portfolio Growth**
– Total: $316.9 million (up from $249.9 million as of March 31, 2025)
– **Change:** Increase of **27%**
– **CLO Debt Investments**
– Total: $148.9 million (up from $85.5 million as of March 31, 2025)
– **Change:** Increase of **74%**
– **CLO Equity Investments**
– Total: $168.0 million (up from $164.4 million as of March 31, 2025)
– **Change:** Increase of **2%**
– **Weighted Average GAAP Yield for the Quarter**
– Total CLO Portfolio Yield: **15.6%**
– **Recurring Cash Distributions from the Investment Portfolio**
– Total: $15.9 million
– Per Share: $0.42
– **Distribution Rate**
– Based on the August 18, 2025, closing stock price of $5.59: **17.2%**
### Dividend Declarations
– **Monthly Distribution of $0.08 per Share Declared on August 7, 2025.**
– Previous distributions for the quarter:
– April 3, 2025: $0.08 (paid on May 27, 2025)
– May 7, 2025: $0.08 (paid on June 30, 2025)
– June 9, 2025: $0.08 (paid on July 31, 2025)
– July 8, 2025: $0.08 (to be paid on August 29, 2025)
### Management Commentary
– **CEO’s Insights:**
– Laurence Penn, the CEO, stated the company achieved a robust annualized return of **19.7%** during the quarter.
– The transition to a closed-end fund has allowed the company to scale its CLO portfolio while disposing of legacy mortgage-related investments effectively.
### Market Commentary
– **Quarterly Environment:**
– The market witnessed volatility primarily due to concerns over global tariffs, influencing corporate credit spreads and leveraged loan prices.
– Following an announcement of a pause on tariffs, corporate credit spreads tightened.
– **Performance Highlights:**
– Investment in U.S. CLO debt saw improved performance, particularly in higher-quality categories. Activity from the CLO strategy accrued strong net investment income alongside realized and unrealized gains.
### Investment Portfolio Composition (as of June 30, 2025)
– **Total Investments Value:** $317.3 million
– **CLO Debt:** 47%
– U.S. CLO Debt: $117.9 million
– European CLO Debt: $30.9 million
– **CLO Equity:** 52.9%
– U.S. CLO Equity: $155.2 million
– European CLO Equity: $12.8 million
– **Other Investments:** $421,000
### Assets and Liabilities Summary (as of June 30, 2025)
– **Total Assets:** $363.9 million
– **Total Liabilities:** $134.2 million
– **Net Asset Value:** $229.7 million
– **Common Shares Outstanding:** 37,559,195
– **Net Asset Value per Common Share:** $6.12
Ellington Credit Company’s formidable advancement in CLO portfolios showcases its robust investment strategies, optimizing returns amid fluctuating market conditions. The ability to declare substantial dividends reflects the firm’s commitment to returning value to its shareholders.
### Condensed Consolidated Statements of Income (In thousands)
| U.S. CLO Debt | European CLO Debt | U.S. CLO Equity | European CLO Equity | Other(1) | Total | Total Per Share | |
|---|---|---|---|---|---|---|---|
| Interest income | 3,314 | 696 | 6,076 | 455 | 1,045 | 11,586 | 0.31 |
| Other investment income | — | — | 84 | — | — | 84 | — |
| Total investment income | 3,314 | 696 | 6,160 | 455 | 1,045 | 11,670 | 0.31 |
| Interest expense | -774 | -126 | -262 | -13 | -540 | -1,715 | -0.05 |
| Other expenses | — | — | — | — | -3,434 | -3,434 | -0.09 |
| Net investment income | 2,540 | 570 | 5,898 | 442 | -2,929 | 6,521 | 0.17 |
| Net realized gain (loss) on investments | 318 | -1 | 176 | -25 | -239 | 229 | 0.01 |
| Change in net unrealized gain (loss) on investments | 1,684 | 199 | 2,507 | -599 | -14 | 3,777 | 0.10 |
| Credit and foreign currency hedges, and other activities | — | — | — | — | -322 | -322 | -0.01 |
| Net income (loss) | 4,542 | 768 | 8,581 | -182 | -3,504 | 10,205 | 0.27 |
| Net income (loss) per share | 0.12 | 0.02 | 0.23 | -0.01 | -0.09 | 0.27 | — |
### Condensed Consolidated Balance Sheets (In thousands)
| (In thousands, except share and per share amounts) | June 30, 2025 |
|---|---|
| Assets | — |
| Investments, at fair value | 317,279 |
| Cash and cash equivalents | 36,644 |
| Other assets | 10,023 |
| Total assets | 363,946 |
| Liabilities | — |
| Reverse repurchase agreements | 112,669 |
| Other liabilities | 21,544 |
| Total liabilities | 134,213 |
| Net asset value | 229,733 |
| Common shares outstanding | 37,559,195 |
| Net asset value per common share | 6.12 |
