Orchid Island Capital, Inc. has recently released its 10-Q report, detailing its operations as a specialty finance company that invests in residential mortgage-backed securities (RMBS) in the United States. The company's investment strategy focuses on traditional pass-through Agency RMBS and structured Agency RMBS, with a business objective to provide attractive risk-adjusted total returns over the long term. Orchid Island Capital, Inc. operates as a real estate investment trust (REIT) and is externally managed by Bimini Advisors, LLC.
In ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, the report discusses various factors that may impact the company's results of operations and financial condition. These include interest rate trends, changes in funding costs, competition for investments in Agency RMBS, actions taken by the U.S. government, prepayment rates on mortgages underlying Agency RMBS, and other market developments. Additionally, factors relating to the company's business, such as leverage, access to funding, borrowing costs, hedging activities, and the market value of investments, are highlighted.
The report also covers the company's capital raising activities, including equity distribution agreements and stock repurchase programs. Orchid Island Capital, Inc. entered into several equity distribution agreements, raising gross proceeds of approximately $228.8 million, $250.0 million, and $265.4 million in separate agreements. Furthermore, the company repurchased a total of 6,257,826 shares at an aggregate cost of approximately $84.8 million through its stock repurchase program.
In terms of financial performance, the report outlines the net (loss) income for the six and three months ended June 30, 2025, as compared to the corresponding periods in 2024. The company reported a net loss of $16.5 million for the six months ended June 30, 2025, compared to net income of $14.8 million for the same period in 2024. For the three months ended June 30, 2025, the net loss was $33.6 million, while the net loss for the same period in 2024 was $5.0 million.
The report also includes GAAP and Non-GAAP reconciliations, presenting certain non-GAAP financial information, such as "Net Earnings Excluding Realized and Unrealized Gains and Losses," "Economic Interest Expense," "Economic Net Interest Income," "Interest Income – Inclusive of Premium Amortization/Discount Accretion," and "Yield on Average RMBS – Inclusive of Premium Amortization/Discount Accretion." These metrics provide additional insights into the company's financial performance. Today the company's shares have moved 1.51% to a price of $7.41. For more information, read the company's full 10-Q submission here.
