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Bimini Capital Management Announces First Quarter 2025 Results

VERO BEACH, Fla., May 01, 2025 (GLOBE NEWSWIRE) -- Bimini Capital Management, Inc. (OTCQB: BMNM), (鈥淏imini Capital,鈥� 鈥淏imini,鈥� or the 鈥淐ompany鈥�), today announced results of operations for the three-month period ended听March 31, 2025.

First听Quarter 2025 Highlights

• Net income of $0.6 million, or $0.06听per common share
• Book value per share of $0.74
• Company to discuss results on Friday, May 2, 2025, at 10:00 AM ET

Management Commentary听

Commenting on the听first quarter results, Robert E. Cauley, Chairman and Chief Executive Officer, said, 鈥淲hile economic data and events generally are never uniformly stable or consistent, the first quarter of 2025 was relatively uneventful.听 Interest rates were generally range bound,听and volatility was low for most of the quarter.听 These are ideal conditions for a levered investment strategy in Agency RMBS.听 Accordingly, the Company and the Agency RMBS market generated attractive returns for the period.听 Orchid Island Capital鈥檚 stock also traded well during the quarter 鈥� at least until the last week of the quarter. Orchid was able to take advantage of these conditions and the performance of its common stock price and raise additional capital, enhancing the Company鈥檚 advisory service revenues going forward.听

鈥淎lthough we did not add to the RMBS portfolio at our Royal Palm Capital subsidiary this quarter we did several times during 2024, and with funding costs down as a result of Fed rates cuts late in 2024, our net interest income, inclusive of dividends from our holdings of Orchid, increased substantially.

鈥淲hile the first quarter market conditions were very supportive of our two operating segments, conditions so far in the second quarter have been challenging.听 At the moment, there remains considerable uncertainty about how the tariffs introduced by the new administration will ultimately impact the economy and markets. To the extent the economy slows, leading to potential additional rate cuts by the Fed, and/or longer-term interest rates rise as a result of the inflationary impacts of the tariffs, both the Company鈥檚 investment portfolio as well as Orchid鈥檚 could benefit from enhanced net interest margins resulting from the steeper interest rate curve.鈥�

Details of First听Quarter 2025 Results of Operations

Orchid reported net income for the first quarter听2025听of $17.1听尘颈濒濒颈辞苍 and generated a 2.60% return on its book value for the quarter 鈥� not annualized. Orchid also raised $205.4 million during the quarter听and its shareholders equity increased from $668.5 million at December 31, 2024 to $855.9 million at March 31, 2025. As a result, Bimini's advisory service revenues of approximately $3.6 million represented a 22% increase over the first quarter of 2024 and a 6% increase over the fourth quarter of 2024.听

Royal Palm did not add to the RMBS portfolio during the first quarter of 2025 but did so several times during 2024, and interest revenue increased 25% over the first quarter of 2024 and 4% over the fourth quarter of 2024.听 With funding costs down as a result of Fed rates cuts late in 2024, net interest income, inclusive of dividends from holdings of Orchid听common shares, increased approximately 64% over the first quarter of 2024 and by approximately 35% over the fourth quarter of 2024.听 Note these figures represent just the net interest income from the investment portfolio, and do not include interest charges on our trust preferred or other long-term debt.

Interest charges on the preferred trust and other long-term debt of $0.54 million were down 8% from the fourth quarter of 2024 and 12% from the first quarter of 2024. Expenses of $2.92 million increased 4% from the fourth quarter of 2024 and decreased 3% from the first quarter of 2024.听 Bimini recorded an income tax provision of $0.2 million for the first quarter of 2025.

Management of Orchid Island Capital, Inc.

Orchid is managed and advised by Bimini. As Manager, Bimini is responsible for administering Orchid鈥檚 business activities and day-to-day operations. Pursuant to the terms of a management agreement, our subsidiary, Bimini Advisors, provides Orchid with its management team, including its officers, along with appropriate support personnel.听Bimini also maintains a common stock investment in Orchid which is accounted for under the fair value option, with changes in fair value recorded in the statement of operations for the current period. For the three months ended听March 31, 2025, Bimini鈥檚 statement of operations included a fair value adjustment of $(0.1) million听and dividends of $0.2听尘颈濒濒颈辞苍听from its investment in Orchid听common stock. Also, during the three months ended听March 31, 2025, Bimini recorded听$3.6听尘颈濒濒颈辞苍听in advisory services revenue for managing Orchid鈥檚 portfolio, consisting of听$2.7听尘颈濒濒颈辞苍 of management fees, $0.6听尘颈濒濒颈辞苍 in overhead reimbursement, and $0.2 million in repurchase, clearing and administrative fees.

Book Value Per Share

The Company's book value per share on听March 31, 2025听was $0.74.听The Company computes book value per share by dividing total stockholders' equity by the total number of shares outstanding of the Company's Class A Common Stock. At听March 31, 2025, the Company's stockholders鈥� equity was $7.4 million, with 10,005,457听Class A Common shares outstanding.

Capital Allocation and Return on Invested Capital

The Company allocates capital between two MBS sub-portfolios, the pass-through MBS portfolio听and the structured MBS portfolio, consisting of interest-only and inverse interest-only securities. The table below details the changes to the respective sub-portfolios during the quarter.

The tables below present the allocation of capital between the respective portfolios at March 31, 2025听and December 31, 2024, and the return on invested capital for each sub-portfolio for the three-month period ended March 31, 2025. Capital allocation is defined as the sum of the market value of securities held, less associated repurchase agreement borrowings, plus cash and cash equivalents and restricted cash associated with repurchase agreements. Capital allocated to non-portfolio assets is not included in the calculation.

The returns on invested capital in the PT MBS and structured MBS portfolios were approximately 4.6%听and 3.7%, respectively, for the three months ended听March 31, 2025. The combined portfolio generated a return on invested capital of approximately 4.4%.

Prepayments

For the听first quarter of 2025, the Company received approximately $2.9 million听in scheduled and unscheduled principal repayments and prepayments, which equated to a 3-month constant prepayment rate (鈥淐PR鈥�) of approximately 7.3%. Prepayment rates on the two MBS sub-portfolios were as follows (in CPR):

Portfolio

The following tables summarize the MBS portfolio as of March 31, 2025听and听December 31, 2024:

Financing and Liquidity

As of March 31, 2025, the Company had outstanding repurchase obligations of approximately $115.5 million with a net weighted average borrowing rate of 4.47%. These agreements were collateralized by MBS with a fair value, including accrued interest, of approximately $121.4 million. At March 31, 2025, the Company鈥檚 liquidity was approximately $4.5 million, consisting of unpledged MBS and cash and cash equivalents.

We may pledge more of our structured MBS as part of a repurchase agreement funding听but retain cash in lieu of acquiring additional assets. In this way, we can, at a modest cost, retain higher levels of cash on hand and decrease the likelihood that we will have to sell assets in a distressed market in order to raise cash. Below is a list of outstanding borrowings under repurchase obligations at March 31, 2025.

Summarized Consolidated Financial Statements

The following is a summarized presentation of the unaudited consolidated balance sheets as of March 31, 2025, and December 31, 2024, and the unaudited consolidated statements of operations for the听three months ended March 31, 2025听and 2024. Amounts presented are subject to change.

About Bimini Capital Management, Inc.

Bimini Capital Management, Inc. invests primarily in, but is not limited to investing in, residential mortgage-related securities issued by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Government National Mortgage Association (Ginnie Mae). Its objective is to earn returns on the spread between the yield on its assets and its costs, including the interest expense on the funds it borrows. In addition, Bimini generates a significant portion of its revenue serving as the manager of the MBS portfolio of, and providing certain repurchase agreement trading, clearing and administrative services to, Orchid Island Capital, Inc.

Forward Looking Statements

Statements herein relating to matters that are not historical facts are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. The reader is cautioned that such forward-looking statements are based on information available at the time and on management's good faith belief with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in such forward-looking statements. Important factors that could cause such differences are described in Bimini Capital Management, Inc.'s filings with the Securities and Exchange Commission, including Bimini Capital Management, Inc.'s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Bimini Capital Management, Inc. assumes no obligation to update forward-looking statements to reflect subsequent results, changes in assumptions or changes in other factors affecting forward-looking statements, except as may be required by applicable law.

Earnings Conference Call Details

An earnings conference call and live audio webcast will be hosted Friday, May 2, 2025, at 10:00 AM ET. Participants can register and receive dial-in information听at https://register-conf.media-server.com/register/BIa731c864bb5447568e7b00d74642ab23. A live audio webcast of the conference call can be accessed at听https://edge.media-server.com/mmc/p/cq5fazei听or via the investor relations section of the Company's website at https://ir.biminicapital.com. An audio archive of the webcast will be available on the website for 30 days after the call.

CONTACT:
Bimini Capital Management, Inc.
Robert E. Cauley, 772-231-1400
Chairman and Chief Executive Officer
https://ir.biminicapital.com