Looking back on thrifts & mortgage finance stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Ellington Financial (NYSE: EFC) and its peers.
Thrifts & Mortgage Finance institutions operate by accepting deposits and extending loans primarily for residential mortgages, earning revenue through interest rate spreads (difference between lending rates and borrowing costs) and origination fees. The industry benefits from demographic tailwinds as millennials enter prime homebuying age, technological advancements streamlining the loan approval process, and potential interest rate stabilization improving affordability. However, significant headwinds include net interest margin compression during rate volatility, increased competition from fintech disruptors offering digital-first experiences, mounting regulatory compliance costs, and potential housing market corrections that could impact loan portfolios and default rates.
The 22 thrifts & mortgage finance stocks we track reported a slower Q1. As a group, revenues missed analysts’ consensus estimates by 18.5%.
In light of this news, share prices of the companies have held steady as they are up 4.1% on average since the latest earnings results.
Ellington Financial (NYSE: EFC)
Operating under the guidance of Ellington Management Group, a respected name in structured credit markets, Ellington Financial (NYSE: EFC) acquires and manages a diverse portfolio of mortgage-related, consumer-related, and other financial assets to generate returns for investors.
Ellington Financial reported revenues of $82.91 million, up 9.8% year on year. This print exceeded analysts’ expectations by 20.7%. Overall, it was a strong quarter for the company with a decent beat of analysts’ tangible book value per share estimates.
"Ellington Financial’s first quarter results reflect continued strength in our diversified residential and commercial mortgage loan portfolios, and ongoing momentum in our securitization platform," said Laurence Penn, Chief Executive Officer and President.

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $13.16.
Is now the time to buy Ellington Financial? Access our full analysis of the earnings results here, it’s free.
Best Q1: Northwest Bancshares (NASDAQ: NWBI)
Founded in 1896 and operating across Pennsylvania, New York, Ohio, and Indiana, Northwest Bancshares (NASDAQ: NWBI) is a bank holding company that operates Northwest Bank, providing personal and business banking, investment management, and trust services.
Northwest Bancshares reported revenues of $156.2 million, up 19% year on year, outperforming analysts’ expectations by 9.9%. The business had a stunning quarter with a solid beat of analysts’ EPS and net interest income estimates.

The market seems happy with the results as the stock is up 8.1% since reporting. It currently trades at $12.77.
Is now the time to buy Northwest Bancshares? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Ladder Capital (NYSE: LADR)
Founded during the 2008 financial crisis when traditional lenders retreated from commercial real estate, Ladder Capital (NYSE: LADR) is a real estate investment trust that originates commercial real estate loans, owns commercial properties, and invests in real estate securities.
Ladder Capital reported revenues of $51.28 million, down 18.9% year on year, falling short of analysts’ expectations by 7.1%. It was a disappointing quarter as it posted a significant miss of analysts’ tangible book value per share and EPS estimates.
Interestingly, the stock is up 3.5% since the results and currently trades at $11.03.
Read our full analysis of Ladder Capital’s results here.
Arbor Realty Trust (NYSE: ABR)
With roots dating back to 2003 and a focus on the stability of multifamily housing, Arbor Realty Trust (NYSE: ABR) is a specialized lender that provides financing solutions for multifamily and commercial real estate while also originating and servicing government-backed mortgage loans.
Arbor Realty Trust reported revenues of $134.2 million, down 16.5% year on year. This print lagged analysts' expectations by 1.1%. It was a softer quarter as it also logged a significant miss of analysts’ EPS estimates.
The stock is down 1.4% since reporting and currently trades at $10.90.
Read our full, actionable report on Arbor Realty Trust here, it’s free.
PennyMac Mortgage Investment Trust (NYSE: PMT)
Operating as a real estate investment trust since 2009 to maintain tax advantages, PennyMac Mortgage Investment Trust (NYSE: PMT) is a specialty finance company that invests in mortgage-related assets and operates a correspondent lending business.
PennyMac Mortgage Investment Trust reported revenues of $44.47 million, down 40.1% year on year. This result came in 52.7% below analysts' expectations. Overall, it was a disappointing quarter as it also recorded a significant miss of analysts’ EPS and tangible book value per share estimates.
The stock is flat since reporting and currently trades at $13.23.
Read our full, actionable report on PennyMac Mortgage Investment Trust here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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