Orchid Island Capital, Inc. has recently released its 10-Q report, providing insights into its financial condition and results of operations. Orchid Island Capital is a specialty finance company that invests in residential mortgage-backed securities (RMBS) in the United States, primarily focusing on traditional pass-through Agency RMBS and structured Agency RMBS. The company's investment strategy aims to provide attractive risk-adjusted total returns over the long term through a combination of capital appreciation and the payment of regular monthly distributions.
In the report, Orchid Island Capital highlighted its capital raising activities, including entering into equity distribution agreements in March 2023, June 2024, and February 2025, resulting in aggregate gross proceeds of approximately $228.8 million, $250.0 million, and $123.7 million, respectively.
The company also disclosed its stock repurchase program, which has seen the repurchase of a total of 5,144,602 shares at an aggregate cost of approximately $77.5 million from the inception of the program through March 31, 2025. Additionally, Orchid Island Capital's Board of Directors approved increases in the number of shares available for repurchase, with the remaining authorization under the stock repurchase program as of April 25, 2025, standing at 2,719,137 shares.
The 10-Q report further outlined various factors that may impact Orchid Island Capital's results of operations and financial condition, including interest rate trends, changes in cost of funds, competition for investments in Agency RMBS, and actions taken by the U.S. government.
In terms of financial performance, Orchid Island Capital reported a net income of $17.1 million, or $0.18 per share, for the three months ended March 31, 2025, compared to a net income of $19.8 million, or $0.38 per share, for the same period in 2024. The report also included a reconciliation of the company's net income determined in accordance with GAAP and net earnings excluding realized and unrealized gains and losses, providing a comprehensive view of its financial performance.
The market has reacted to these announcements by moving the company's shares 4.4% to a price of $7.24. If you want to know more, read the company's complete 10-Q report here.
