Business Wire | Nov 2, 2021 04:15PM EDT

Ellington Residential Mortgage REIT Reports Third Quarter 2021 Results

Nov. 02, 2021

OLD GREENWICH, Conn.--(BUSINESS WIRE)--Nov. 02, 2021--Ellington Residential Mortgage REIT (NYSE: EARN) (the "Company") today reported financial results for the quarter ended September 30, 2021.

Highlights

* Net income of $0.9 million, or $0.07 per share. * Core Earnings1 of $4.0 million, or $0.31 per share. * Book value of $12.28 per share as of September 30, 2021, which includes the effect of a third quarter dividend of $0.30 per share. * Net interest margin2 of 1.88%. * Weighted average constant prepayment rate ("CPR") for the fixed-rate Agency specified pool portfolio of 21.9%3. * Switched to a monthly dividend schedule in October 2021, and declared inaugural monthly dividend of $0.10 per share. * Dividend yield of 9.8% based on the November 1, 2021 closing stock price of $12.19. * Debt-to-equity ratio of 6.7:1 as of September 30, 2021. * Net mortgage assets-to-equity ratio of 6.4:14 as of September 30, 2021. * Cash and cash equivalents of $61.2 million as of September 30, 2021, in addition to other unencumbered assets of $31.7 million.

Third Quarter 2021 Results

"In the third quarter, Ellington Residential generated net income of $0.07 per share, and Core Earnings of $0.31 per share, which continued to cover our dividend," said Laurence Penn, Chief Executive Officer and President. "In October, we shifted to a monthly dividend, which we think will further enhance EARN's appeal to income-oriented investors.

"Performance of Agency RMBS was again mixed during the third quarter. Incrementally higher mortgage rates-particularly in September-led to reduced expectations for prepayment rates and boosted higher-coupon RMBS, while the anticipated withdrawal of Federal Reserve purchases negatively impacted lower-coupon RMBS. As a result, higher coupons outperformed lower coupons.

"Net interest income on our portfolio more than offset net unrealized and realized losses, which were concentrated on our lower-coupon holdings. On the hedging side, net gains on our interest-rate swaps and U.S. Treasury hedges roughly offset net losses on our TBA short positions, which continued to be concentrated in higher coupons.

"As we move into the final weeks of the year and look ahead to 2022, we will seek to capitalize on pricing dislocations that Fed tapering-or fear of Fed tapering-could generate. We believe that our hedging strategy and highly liquid portfolio position us well to take advantage of these potential opportunities, while also preserving book value."

___________________________________

^ Core Earnings is a non-GAAP financial measure. See "Reconciliation of Core1 Earnings to Net Income (Loss)" below for an explanation regarding the calculation of Core Earnings.

^ Net interest margin excludes the effect of the Catch-up Premium2 Amortization Adjustment.

^ Excludes recent purchases of fixed rate Agency specified pools with no3 prepayment history.

The Company defines its net mortgage assets-to-equity ratio as the net aggregate market value of its mortgage-backed securities (including the^ underlying market values of its long and short TBA positions) divided by4 total shareholders' equity. As of September 30, 2021 the market value of the Company's mortgage-backed securities and its net short TBA position was $1.22 billion and $(195.2) million, respectively, and total shareholders' equity was $158.9 million.

Financial Results

The following table summarizes the Company's portfolio of RMBS as of September 30, 2021 and June 30, 2021:

September 30, 2021 June 30, 2021

(In thousands) Current Fair Value Average Cost Average Current Fair Value Average Cost Average Principal Price^(1) Cost^(1) Principal Price^(1) Cost^(1)

Agency RMBS^(2)

15-year fixed-rate $ 142,607 $ 150,316 $ 105.41 $ 148,435 $ 104.09 $ 140,139 $ 148,054 $ 105.65 $ 145,804 $ 104.04 mortgages

20-year fixed-rate 37,387 38,515 103.02 38,925 104.11 38,496 39,610 102.89 40,062 104.07 mortgages

30-year fixed-rate 898,524 955,012 106.29 940,203 104.64 872,706 933,252 106.94 914,966 104.84 mortgages

ARMs 11,692 12,212 104.45 12,253 104.80 13,388 14,042 104.88 14,027 104.77

Reverse mortgages 38,657 41,339 106.94 41,274 106.77 49,698 53,714 108.08 52,956 106.56

Total Agency RMBS 1,128,867 1,197,394 106.07 1,181,090 104.63 1,114,427 1,188,672 106.66 1,167,815 104.79

Non-Agency RMBS 10,874 9,138 84.04 7,288 67.02 11,069 9,304 84.05 7,344 66.35

Total RMBS^(2) 1,139,741 1,206,532 105.86 1,188,378 104.27 1,125,496 1,197,976 106.44 1,175,159 104.41

Agency IOs n/a 11,774 n/a 14,255 n/a n/a 12,644 n/a 15,393 n/a

Total mortgage-backed $ 1,218,306 $ 1,202,633 $ 1,210,620 $ 1,190,552 securities

(1) Represents the dollar amount (not shown in thousands) per $100 of current principal of the price or cost for the security.

(2) Excludes Agency IOs.

The Company's Agency RMBS holdings increased slightly to $1.197 billion as of September 30, 2021, as compared to $1.189 billion as of June 30, 2021. Over the same period, the Company's non-Agency RMBS holdings decreased slightly to $9.1 million, from $9.3 million. The Company's Agency RMBS portfolio turnover was 23% for the quarter.

The Company's debt-to-equity ratio, decreased to 6.7:1 as of September 30, 2021, as compared to 7.0:1 as of June 30, 2021. The Company's net mortgage assets-to-equity ratio decreased to 6.4:1 as of September 30, 2021, as compared to 6.7:1 as of June 30, 2021, driven by a larger net short TBA position quarter over quarter.

Performance of Agency RMBS was mixed during the third quarter. In July and early August, interest rates continued to fall and volatility increased, causing lower-coupon Agency RMBS to underperform U.S. Treasury securities. Moving into the latter half of the quarter, interest rates began to increase and volatility declined, and toward the end of the quarter, Agency yield spreads tightened as the market got more clarity on the Federal Reserve's tapering plan. Incrementally higher mortgage rates-particularly in September-led to reduced expectations for prepayment rates and boosted higher-coupon RMBS, while the anticipated withdrawal of Federal Reserve purchases negatively impacted lower-coupon RMBS.

Net interest income on the Company's portfolio more than offset net realized and unrealized losses, which were concentrated in its lower-coupon holdings. In addition, the Company's reverse mortgage portfolio underperformed, driven by widening yield spreads in that sector. On the hedging side, net gains on interest-rate swaps and U.S. Treasury hedges roughly offset net losses on TBA short positions, which the Company continued to concentrate in higher coupons.

Average pay-ups on the Company's specified pools decreased to 1.44% as of September 30, 2021, as compared to 1.55% as of June 30, 2021, as new purchases during the quarter mainly consisted of pools with lower pay-ups. Pay-ups are price premiums for specified pools relative to their TBA counterparts.

During the quarter, the Company continued to hedge interest rate risk through the use of interest rate swaps and short positions in TBAs, U.S. Treasury securities and futures. Similar to recent quarters, the Company ended the third quarter with a small net short overall TBA position on a notional basis while maintaining a small net long overall TBA position as measured by 10-year equivalents. Ten-year equivalents for a group of positions represent the amount of 10-year U.S. Treasury securities that would be expected to experience a similar change in market value under a standard parallel move in interest rates.

The Company's non-Agency RMBS portfolio had positive results for the quarter as net interest income exceeded modest mark-to-market losses. The Company expects to vary its allocation to non-agency RMBS as market opportunities change over time.

Core Earnings and net interest margin decreased quarter over quarter, primarily driven by lower asset yields.

Reconciliation of Core Earnings to Net Income (Loss)

Core Earnings consists of net income (loss), excluding realized and change in net unrealized gains and (losses) on securities and financial derivatives, and excluding, if applicable, any non-recurring items of income or loss. Core Earnings also excludes the effect of the Catch-up Premium Amortization Adjustment on interest income. The Catch-up Premium Amortization Adjustment is a quarterly adjustment to premium amortization triggered by changes in actual and projected prepayments on the Company's Agency RMBS (accompanied by a corresponding offsetting adjustment to realized and unrealized gains and losses). The adjustment is calculated as of the beginning of each quarter based on the Company's then-current assumptions about cashflows and prepayments, and can vary significantly from quarter to quarter. Core Earnings includes net realized and change in net unrealized gains (losses) associated with periodic settlements on interest rate swaps.

Core Earnings is a supplemental non-GAAP financial measure. The Company believes that Core Earnings provides information useful to investors because it is a metric that the Company uses to assess its performance and to evaluate the effective net yield provided by the portfolio. Moreover, one of the Company's objectives is to generate income from the net interest margin on the portfolio, and Core Earnings is used to help measure the extent to which this objective is being achieved. In addition, the Company believes that presenting Core Earnings enables its investors to measure, evaluate and compare its operating performance to that of its peer companies. However, because Core Earnings is an incomplete measure of the Company's financial results and differs from net income (loss) computed in accordance with GAAP, it should be considered as supplementary to, and not as a substitute for, net income (loss) computed in accordance with GAAP.

The following table reconciles, for the three-month periods ended September 30, 2021 and June 30, 2021, the Company's Core Earnings to the line on the Company's Consolidated Statement of Operations entitled Net Income (Loss), which the Company believes is the most directly comparable GAAP measure:

(1) Represents the dollar amount (not shown in thousands) per $100 of current principal of the price or cost for the security.

(2) Excludes Agency IOs. The Company's Agency RMBS holdings increased slightly to $1.197 billion as of September 30, 2021, as compared to $1.189 billion as of June 30, 2021. Over the same period, the Company's non-Agency RMBS holdings decreased slightly to $9.1 million, from $9.3 million. The Company's Agency RMBS portfolio turnover was 23% for the quarter.

The Company's debt-to-equity ratio, decreased to 6.7:1 as of September 30, 2021, as compared to 7.0:1 as of June 30, 2021. The Company's net mortgage assets-to-equity ratio decreased to 6.4:1 as of September 30, 2021, as compared to 6.7:1 as of June 30, 2021, driven by a larger net short TBA position quarter over quarter.

Performance of Agency RMBS was mixed during the third quarter. In July and early August, interest rates continued to fall and volatility increased, causing lower-coupon Agency RMBS to underperform U.S. Treasury securities. Moving into the latter half of the quarter, interest rates began to increase and volatility declined, and toward the end of the quarter, Agency yield spreads tightened as the market got more clarity on the Federal Reserve's tapering plan. Incrementally higher mortgage rates-particularly in September-led to reduced expectations for prepayment rates and boosted higher-coupon RMBS, while the anticipated withdrawal of Federal Reserve purchases negatively impacted lower-coupon RMBS.

Net interest income on the Company's portfolio more than offset net realized and unrealized losses, which were concentrated in its lower-coupon holdings. In addition, the Company's reverse mortgage portfolio underperformed, driven by widening yield spreads in that sector. On the hedging side, net gains on interest-rate swaps and U.S. Treasury hedges roughly offset net losses on TBA short positions, which the Company continued to concentrate in higher coupons.

Average pay-ups on the Company's specified pools decreased to 1.44% as of September 30, 2021, as compared to 1.55% as of June 30, 2021, as new purchases during the quarter mainly consisted of pools with lower pay-ups. Pay-ups are price premiums for specified pools relative to their TBA counterparts.

During the quarter, the Company continued to hedge interest rate risk through the use of interest rate swaps and short positions in TBAs, U.S. Treasury securities and futures. Similar to recent quarters, the Company ended the third quarter with a small net short overall TBA position on a notional basis while maintaining a small net long overall TBA position as measured by 10-year equivalents. Ten-year equivalents for a group of positions represent the amount of 10-year U.S. Treasury securities that would be expected to experience a similar change in market value under a standard parallel move in interest rates.

The Company's non-Agency RMBS portfolio had positive results for the quarter as net interest income exceeded modest mark-to-market losses. The Company expects to vary its allocation to non-agency RMBS as market opportunities change over time.

Core Earnings and net interest margin decreased quarter over quarter, primarily driven by lower asset yields.

Reconciliation of Core Earnings to Net Income (Loss)

Core Earnings consists of net income (loss), excluding realized and change in net unrealized gains and (losses) on securities and financial derivatives, and excluding, if applicable, any non-recurring items of income or loss. Core Earnings also excludes the effect of the Catch-up Premium Amortization Adjustment on interest income. The Catch-up Premium Amortization Adjustment is a quarterly adjustment to premium amortization triggered by changes in actual and projected prepayments on the Company's Agency RMBS (accompanied by a corresponding offsetting adjustment to realized and unrealized gains and losses). The adjustment is calculated as of the beginning of each quarter based on the Company's then-current assumptions about cashflows and prepayments, and can vary significantly from quarter to quarter. Core Earnings includes net realized and change in net unrealized gains (losses) associated with periodic settlements on interest rate swaps.

Core Earnings is a supplemental non-GAAP financial measure. The Company believes that Core Earnings provides information useful to investors because it is a metric that the Company uses to assess its performance and to evaluate the effective net yield provided by the portfolio. Moreover, one of the Company's objectives is to generate income from the net interest margin on the portfolio, and Core Earnings is used to help measure the extent to which this objective is being achieved. In addition, the Company believes that presenting Core Earnings enables its investors to measure, evaluate and compare its operating performance to that of its peer companies. However, because Core Earnings is an incomplete measure of the Company's financial results and differs from net income (loss) computed in accordance with GAAP, it should be considered as supplementary to, and not as a substitute for, net income (loss) computed in accordance with GAAP.

The following table reconciles, for the three-month periods ended September 30, 2021 and June 30, 2021, the Company's Core Earnings to the line on the Company's Consolidated Statement of Operations entitled Net Income (Loss), which the Company believes is the most directly comparable GAAP measure:

Three-Month Period Ended

(In thousands except share amounts and per September 30, June 30, 2021share amounts) 2021

Net Income (Loss) $ 860 $ (4,537 )

Adjustments:

Net realized (gains) losses on securities (1,425 ) (852 )

Change in net unrealized (gains) losses on 4,283 11,071 securities

Net realized (gains) losses on financial 3,042 (2,222 ) derivatives

Change in net unrealized (gains) losses on (3,291 ) 4,221 financial derivatives

Net realized gains (losses) on periodic (791 ) (255 ) settlements of interest rate swaps

Change in net unrealized gains (losses) onaccrued periodic settlements of interest rate 123 (246 ) swaps

Non-recurring expenses - 58

Negative (positive) component of interestincome represented by Catch-up Premium 1,213 (2,636 ) Amortization Adjustment

Subtotal 3,154 9,139

Core Earnings $ 4,014 $ 4,602

Weighted Average Shares Outstanding 12,921,649 12,432,004

Core Earnings Per Share $ 0.31 $ 0.37

About Ellington Residential Mortgage REIT

Ellington Residential Mortgage REIT is a mortgage real estate investment trust that specializes in acquiring, investing in and managing residential mortgage- and real estate-related assets, with a primary focus on residential mortgage-backed securities for which the principal and interest payments are guaranteed by a U.S. government Agency or a U.S. government-sponsored enterprise. Ellington Residential Mortgage REIT is externally managed and advised by Ellington Residential Mortgage Management LLC, an affiliate of Ellington Management Group, L.L.C.

Conference Call

The Company will host a conference call at 11:00 a.m. Eastern Time on Wednesday, November 3, 2021, to discuss its financial results for the quarter ended September 30, 2021. To participate in the event by telephone, please dial (877) 876-9174 at least 10 minutes prior to the start time and reference the conference ID: EARNQ321. International callers should dial (785) 424-1669 and reference the same conference ID. The conference call will also be webcast live over the Internet and can be accessed via the "For Our Shareholders" section of the Company's web site at www.earnreit.com. To listen to the live webcast, please visit www.earnreit.com at least 15 minutes prior to the start of the call to register, download, and install necessary audio software. In connection with the release of these financial results, the Company also posted an investor presentation, that will accompany the conference call, on the Company's website at www.earnreit.com under "For Our Shareholders-Presentations."

A dial-in replay of the conference call will be available on Wednesday, November 3, 2021, at approximately 2:00 p.m. Eastern Time through Wednesday, November 10, 2021 at approximately 11:59 p.m. Eastern Time. To access this replay, please dial (800) 934-7879. International callers should dial (402) 220-6986. A replay of the conference call will also be archived on the Company's web site at www.earnreit.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve numerous risks and uncertainties. Actual results may differ from the Company's beliefs, expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements are not historical in nature and can be identified by words such as "believe," "expect," "anticipate," "estimate," "project," "plan," "continue," "intend," "should," "would," "could," "goal," "objective," "will," "may," "seek," or similar expressions or their negative forms, or by references to strategy, plans, or intentions. Examples of forward-looking statements in this press release include, without limitation, the Company's beliefs regarding the current economic and investment environment, the Company's ability to implement its investment and hedging strategies, the Company's future prospects and the protection of the Company's net interest margin from prepayments, volatility and its impact on the Company, the performance of the Company's investment and hedging strategies, the Company's exposure to prepayment risk in the Company's Agency portfolio, and statements regarding the drivers of the Company's returns. The Company's results can fluctuate from month to month and from quarter to quarter depending on a variety of factors, some of which are beyond the Company's control and/or are difficult to predict, including, without limitation, changes in interest rates and the market value of the Company's securities, changes in mortgage default rates and prepayment rates, the Company's ability to borrow to finance its assets, changes in government regulations affecting the Company's business, the Company's ability to maintain its exclusion from registration under the Investment Company Act of 1940 and other changes in market conditions and economic trends, including changes resulting from the economic effects related to the COVID-19 pandemic, and associated responses to the pandemic. Furthermore, forward-looking statements are subject to risks and uncertainties, including, among other things, those described in Item 1A of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020 filed on March 16, 2021 which can be accessed through the link to the Company's SEC filings under "For Our Shareholders" on the Company's website (www.earnreit.com) or at the SEC's website (www.sec.gov). Other risks, uncertainties, and factors that could cause actual results to differ materially from those projected or implied may be described from time to time in reports we file with the SEC, including reports on Forms 10-Q, 10-K and 8-K. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

ELLINGTON RESIDENTIAL MORTGAGE REIT

CONSOLIDATED STATEMENT OF OPERATIONS

(UNAUDITED)

Three-Month Nine-Month Period Ended Period Ended

September 30, June 30, September 30, 2021 2021 2021

(In thousands except shareamounts and per share amounts)

INTEREST INCOME (EXPENSE)

Interest income $ 5,463 $ 9,875 $ 21,873

Interest expense (552 ) (661 ) (1,994 )

Total net interest income 4,911 9,214 19,879

EXPENSES

Management fees to affiliate 598 609 1,821

Professional fees 223 275 768

Compensation expense 203 212 592

Insurance expense 99 95 280

Other operating expenses 319 342 978

Total expenses 1,442 1,533 4,439

OTHER INCOME (LOSS)

Net realized gains (losses) 1,425 852 5,358 on securities

Net realized gains (losses) (3,042 ) 2,222 (5,971 ) on financial derivatives

Change in net unrealized (4,283 ) (11,071 ) (25,662 ) gains (losses) on securities

Change in net unrealizedgains (losses) on financial 3,291 (4,221 ) 7,285 derivatives

Total other income (loss) (2,609 ) (12,218 ) (18,990 )

NET INCOME (LOSS) $ 860 $ (4,537 ) $ (3,550 )

NET INCOME (LOSS) PER COMMON SHARE:

Basic and Diluted $ 0.07 $ (0.36 ) $ (0.28 )

WEIGHTED AVERAGE SHARES 12,921,649 12,432,004 12,567,849 OUTSTANDING

CASH DIVIDENDS PER SHARE:

Dividends declared $ 0.30 $ 0.30 $ 0.88

ELLINGTON RESIDENTIAL MORTGAGE REIT

CONSOLIDATED BALANCE SHEET

(UNAUDITED)

As of

September 30, 2021

June 30,2021

December 31, 2020(1)

(In thousands except share amounts and per share amounts)

ASSETS

Cash and cash equivalents

$

61,169

$

58,683

$

58,166

Mortgage-backed securities, at fair value

1,218,306

1,210,620

1,081,380

Other investments, at fair value

309

306

292

Due from brokers

58,296

69,000

47,798

Financial derivatives-assets, at fair value

7,310

3,750

2,791

Reverse repurchase agreements

9,975

33,572

-

Receivable for securities sold

7,022

778

-

Interest receivable

3,786

3,786

4,114

Other assets

502

550

270

Total Assets

$

1,366,675

$

1,381,045

$

1,194,811

LIABILITIES AND SHAREHOLDERS' EQUITY

LIABILITIES

Repurchase agreements

$

1,062,197

$

1,135,497

$

1,015,245

Payable for securities purchased

125,853

51,885

-

Due to brokers

577

222

1,064

Financial derivatives-liabilities, at fair value

3,090

4,318

6,630

U.S. Treasury securities sold short, at fair value

9,974

21,017

-

Dividend payable

3,881

3,876

3,456

Accrued expenses

1,207

1,332

918

Management fee payable to affiliate

598

609

626

Interest payable

398

437

470

Total Liabilities

1,207,775

1,219,193

1,028,409

SHAREHOLDERS' EQUITY

Preferred shares, par value $0.01 per share, 100,000,000 shares authorized; (0 shares issued and outstanding, respectively)

-

-

-

Common shares, par value $0.01 per share, 500,000,000 shares authorized; (12,935,358, 12,918,542 and 12,343,542 shares issued and outstanding, respectively)

129

129

123

Additional paid-in-capital

236,869

236,800

229,614

Accumulated deficit

(78,098

)

(75,077

)

(63,335

)

Total Shareholders' Equity

158,900

161,852

166,402

Total Liabilities and Shareholders' Equity

$

1,366,675

$

1,381,045

$

1,194,811

SUPPLEMENTAL PER SHARE INFORMATION

Book Value Per Share

$

12.28

$

12.53

$

13.48

ELLINGTON RESIDENTIAL MORTGAGE REIT

CONSOLIDATED BALANCE SHEET

(UNAUDITED)

As of

September 30, June 30, December 31, 2021 2021 2020^(1)

(In thousands exceptshare amounts and per share amounts)

ASSETS

Cash and cash equivalents $ 61,169 $ 58,683 $ 58,166

Mortgage-backed 1,218,306 1,210,620 1,081,380 securities, at fair value

Other investments, at 309 306 292 fair value

Due from brokers 58,296 69,000 47,798

Financialderivatives-assets, at 7,310 3,750 2,791 fair value

Reverse repurchase 9,975 33,572 - agreements

Receivable for securities 7,022 778 - sold

Interest receivable 3,786 3,786 4,114

Other assets 502 550 270

Total Assets $ 1,366,675 $ 1,381,045 $ 1,194,811

LIABILITIES AND SHAREHOLDERS' EQUITY

LIABILITIES

Repurchase agreements $ 1,062,197 $ 1,135,497 $ 1,015,245

Payable for securities 125,853 51,885 - purchased

Due to brokers 577 222 1,064

Financialderivatives-liabilities, 3,090 4,318 6,630 at fair value

U.S. Treasury securities 9,974 21,017 - sold short, at fair value

Dividend payable 3,881 3,876 3,456

Accrued expenses 1,207 1,332 918

Management fee payable to 598 609 626 affiliate

Interest payable 398 437 470

Total Liabilities 1,207,775 1,219,193 1,028,409

SHAREHOLDERS' EQUITY

Preferred shares, parvalue $0.01 per share,100,000,000 shares - - - authorized; (0 sharesissued and outstanding,respectively)

Common shares, par value$0.01 per share,500,000,000 sharesauthorized; (12,935,358, 129 129 123 12,918,542 and 12,343,542shares issued andoutstanding,respectively)

Additional 236,869 236,800 229,614 paid-in-capital

Accumulated deficit (78,098 ) (75,077 ) (63,335 )

Total Shareholders' 158,900 161,852 166,402 Equity

Total Liabilities and $ 1,366,675 $ 1,381,045 $ 1,194,811 Shareholders' Equity

SUPPLEMENTAL PER SHARE INFORMATION

Book Value Per Share $ 12.28 $ 12.53 $ 13.48

(1) Derived from audited financial statements as of December 31, 2020.

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CONTACT: Investors: Investor Relations Ellington Residential Mortgage REIT (203) 409-3773 info@earnreit.com

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CONTACT: Media: Amanda Klein or Kevin FitzGerald Gasthalter & Co. for Ellington Residential Mortgage REIT (212) 257-4170 Ellington@gasthalter.com