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Bimini Capital Management Announces Fourth Quarter 2024 Results

VERO BEACH, Fla., March 06, 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December 31, 2024.

Fourth Quarter 2024 Highlights

• 狈别迟听濒辞蝉蝉听辞蹿 $1.5 million, or $0.15听per common share
• Book value per share of $0.68
• Company to discuss results on Friday, March 7, 2025, at 10:00 AM ET

Management Commentary

Commenting on the听fourth quarter results, Robert E. Cauley, Chairman and Chief Executive Officer, said, 鈥淭he outlook for the fixed income market pivoted early in the fourth quarter of 2024. As the third quarter came to an end, inflation was falling towards the Fed鈥檚 2% target, the labor market was cooling as hiring levels moderated and the unemployment rate was slowly creeping higher, and the Fed had finally lowered the Fed Funds rate by 50 basis points. At the time, the market expected the Fed to lower the rate by over 200 basis points over the next 18 months. As we know, beginning early in the fourth quarter, the incoming data turned. Even as the economic outlook shifted, the Fed did lower the Fed Funds rate two more times during 2024 鈥� by 25 basis points in each case. With the Fed Funds rate lowered by 100 basis points over the course of the quarter, the persistently strong economic outlook led to a dis-inversion of the yield curve. However, the market expectation for additional reductions in the Fed Funds rate continued to decline over the course of the fourth quarter and into 2025.

鈥淥rchid Island Capital ("Orchid") reported fourth quarter听2024听net income of $5.6听尘颈濒濒颈辞苍, and its shareholders equity increased slightly, from $656.0 million to $668.5 million.听As a result, Bimini's advisory service revenues also increased slightly, to $3.4听尘颈濒濒颈辞苍 compared to $3.3 million for the third quarter of 2024. Further, in late February, Orchid reported yet another increase in its shareholder base, which should lead to another increase in advisory service revenue for the first quarter of 2025.

鈥淭he investment portfolio generated net interest income of $0.3 million. Dividends on Orchid stock were $0.2 million.听Mark to market gains and losses on our MBS portfolio, hedge positions and shares of Orchid netted to income of $0.1听尘颈濒濒颈辞苍.听The MBS portfolio increased by $4.0 million during the fourth quarter of 2024听and increased by $29.5 million for the year. The Company had听positive cash flows from operations for the fourth quarter and full year, which has allowed the Company to grow the MBS portfolio throughout the year.

鈥淭he Company 鈥� inclusive of both the advisory services segment and the investment portfolio segment, recorded net income before taxes for the quarter of $0.6听尘颈濒濒颈辞苍 versus a net loss before taxes听of $0.8听尘颈濒濒颈辞苍听for the third quarter of 2024.听We updated our projected utilization of our deferred tax assets and increased the valuation allowance, resulting in a tax provision of $2.1 million and a net loss for the 2024 fourth quarter of $1.5 million.

鈥淟ooking forward, while economic activity has remained resilient if not strong, the labor market is quite healthy, and inflation remains above the Fed鈥檚 2% target, uncertainty in the economic outlook has crept into the market as the first quarter of 2025 progresses. What this means for interest rate levels, Federal Reserve monetary policy or the MBS market remains to be seen. However, quarter to date market conditions have been favorable for both Orchid Island and Royal Palm's investment portfolios.鈥�

Details of Fourth听Quarter 2024 Results of Operations

The Company reported a net听loss听of $1.5 million听for the three-month period ended December 31, 2024. Advisory service revenue for the quarter was $3.4 million,听consisting of management fees of $2.5 million, overhead reimbursements of $0.7 million, and $0.2 million repurchase听agreement and clearing services revenue.听We recorded interest and dividend income of $1.9 million, and interest expense on repurchase agreements of $1.4 million and long-term debt of听$0.6 million.听Other income of $0.1 million consisted of a $0.3 million听mark to market loss听on our shares of Orchid common stock, unrealized losses听of $2.7 million听on our MBS portfolio, and $3.0 million of unrealized gains on our derivatives used for hedging purposes. The results for the quarter also included operating expenses of $2.8 million听and an income tax听provision of $2.1 million.

For the twelve-month period ended听December 31, 2024, the Company reported a net loss of $1.3 million net of an income tax provision of $3.1 million. Advisory service revenue for the year听was $12.8 million, comprised of $9.5 million of management fees, $2.6 million of overhead reimbursements and $0.7 million of repurchase agreement and clearing service revenue. The investment portfolio segment generated $5.8 million of interest income and $0.8 million of dividends from our investment in shares of Orchid. The $6.6 million of investment portfolio income was offset by $5.1 million of repurchase agreement interest expense, and $14.3听尘颈濒濒颈辞苍 of net revenues from advisory services and the investment portfolio were offset by $2.4 million of interest on long-term debt. The Company reported $1.2 million of other income, comprised of $0.3 million of unrealized losses on MBS assets, $0.6 million of realized losses on sales of MBS, $0.4 million of unrealized losses on our shares of Orchid, and $2.4 million of unrealized gains on our derivative positions used for hedging purposes.听Operating expenses were $11.3 million for the year, resulting in net income before taxes of $1.8 million.

Orchid Island Capital, Inc.

Orchid is managed and advised by Bimini's subsidiary, Bimini Advisors, LLC ("Bimini Advisors"). As manager, Bimini Advisors is responsible for administering Orchid鈥檚 business activities and day-to-day operations. Pursuant to the terms of the management agreement with Orchid, Bimini Advisors provides Orchid with its management team, including its officers, along with appropriate support personnel.

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December 31, 2024, Bimini鈥檚 statement of operations included a听$0.3 million听mark to market loss听and dividends of $0.2 million听from its investment in Orchid鈥檚 common stock. Also during the three months ended听December 31, 2024, Bimini recorded $3.4 million听in advisory services revenue for managing Orchid鈥檚 portfolio, consisting of听$2.5 million of management fees,听$0.7 million in overhead reimbursement and听$0.2 million in repurchase, clearing and administrative fees.

Book Value Per Share

The Company's Book Value Per Share at听December 31, 2024听was $0.68. 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December 31, 2024, the Company's stockholders鈥� equity was $6.8 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 (鈥淧T MBS鈥�) and the structured MBS portfolio, currently consisting of interest-only听and inverse interest-only听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 December 31, 2024听and September 30, 2024, and the return on invested capital for each sub-portfolio for the three-month period ended December 31, 2024. 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 6.7%听and 1.4%, respectively, for the fourth听quarter of 2024. The combined portfolio generated a return on invested capital of approximately 5.6%.

Prepayments

For the fourth听quarter of 2024, the Company received approximately $3.3 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 11.1% for the fourth听quarter of 2024. Prepayment rates on the two MBS sub-portfolios were as follows (in CPR):

Portfolio

The following tables summarize the MBS portfolio as of December 31, 2024听and 2023:

Financing and Liquidity

As of December 31, 2024, the Company had outstanding repurchase obligations of approximately $117.2 million, with a net weighted average borrowing rate of 4.68%. These agreements were collateralized by MBS with a fair value, including accrued interest, of approximately $122.7 million.听At December 31, 2024, the Company鈥檚 liquidity was approximately $5.9 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, 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 December 31, 2024.

Summarized Consolidated Financial Statements

The following is a summarized presentation of the unaudited consolidated balance sheets as of December 31, 2024听and听2023, and the unaudited consolidated statements of operations for the calendar quarters and years ended December 31, 2024听and 2023. 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 law.

Earnings Conference Call Details

An earnings conference call and live audio webcast will be hosted Friday, March 7, 2025, at 10:00 AM ET. Participants can register and receive dial-in information at https://register.vevent.com/register/BI5a76ee1f6a7e42b0a82786c7f6e48550. A live audio webcast of the conference call can be accessed at https://edge.media-server.com/mmc/p/98jgiw2o or via the investor relations section of the Company's website at https://ir.biminicapital.com.

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