Orchid Island Capital Reports $72.1M Net Income

By Philip Seaworth • Friday, October 24 12:11 • Permanent Link

Orchid Island Capital, Inc. (NYSE:ORC) has released its third-quarter 2025 financial results, reporting a net income of $72.1 million, or $0.53 per common share. This represents a significant increase from the net income of $17.3 million for the same period in 2024. The company's net interest income for the quarter was $26.9 million, or $0.20 per common share, and total expenses amounted to $5.4 million, or $0.04 per common share.

The company also reported net realized and unrealized gains of $50.6 million, or $0.37 per common share, on RMBS and derivative instruments, including net interest income on interest rate swaps. Additionally, Orchid declared and paid third-quarter dividends of $0.36 per common share.

As of September 30, 2025, Orchid's book value per common share stood at $7.33, marking an increase of $0.12 from the previous quarter. The company achieved a total return of 6.7%, which comprises the $0.36 dividend per common share and the $0.12 increase in book value per common share, divided by the beginning book value per common share.

In terms of liquidity, Orchid maintained a strong position with $620.0 million in cash and cash equivalents and unpledged securities, which accounts for approximately 57% of stockholders' equity as of September 30, 2025. The company's borrowing capacity exceeded its outstanding repurchase agreement balances of $8.0 billion, which are spread across 26 active lenders.

Orchid's management will discuss the results on October 24, 2025, and supplemental materials related to the call can be downloaded from the investor relations section of the company's website.

The company's chairman and CEO, Robert E. Cauley, highlighted the favorable market conditions during the quarter for levered agency RMBS investors. He noted that Orchid continued to build its capital base and invested the proceeds into agency RMBS offering net interest income and total return potential above historical norms. Cauley also expressed confidence in Orchid's portfolio, stating that it is positioned to deliver attractive return potential in uncertain economic scenarios.

In addition to the financial results, Orchid provided detailed information on its prepayments, portfolio characteristics, financing, leverage, liquidity, and hedging strategies, offering a comprehensive view of its operations in the third quarter of 2025. Following these announcements, the company's shares moved -0.4%, and are now trading at a price of $7.44. Check out the company's full 8-K submission here.

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