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Bimini Capital Management Announces Second Quarter 2025 Results

VERO BEACH, Fla., July 31, 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June 30, 2025.

Second听Quarter 2025 Highlights

• Net income of听approximately $43 thousand, or $0.00 per common share
• Book value per share of $0.74
• Company to discuss results on Friday, August 1, 2025, at 10:00 AM ET

Management Commentary

Commenting on the听second quarter results, Robert E. Cauley, Chairman and Chief Executive Officer, said, 鈥淲hen we announced our first quarter results, the second quarter of 2025 was off to a very rough start.听 Markets were in turmoil as a result of the extensive reciprocal tariffs announced by the Trump administration. While these conditions abated gradually,听all the companies in the mortgage REIT sector that have reported second听quarter earnings to date reported losses for the quarter. Our MBS segment produced a loss of $1.3 million as well but our advisory services segment generated earnings of $1.9 million and Bimini as a whole generated modest net income of approximately $43 thousand.听 For the six months ended June 30, 2025, Bimini recorded net income of $0.6 million, or $0.06 per share, representing a return on stockholders' equity of 8.7%, unannualized.

鈥淥ur advisory service revenues for the quarter and six months ended June 30, 2025 increased by 20% and 21%, respectively, over the comparable 2024 periods. While we sold $9.8听尘颈濒濒颈辞苍 of MBS early in the second quarter in response to the adverse market conditions mentioned above, our interest revenues for the quarter and six months ended June 30, 2025 increased 23% and 24%, respectively, over the comparable 2024 periods. As our cash positions have increased over the past few months, we anticipate resuming growth of the RMBS portfolio in the near-term.

鈥淎s the third quarter unfolds markets are considerably calmer than when the second quarter was starting, and Agency RMBS are still trading at attractive levels.听 Market conditions generally are quite favorable for RMBS 鈥� a positive development for both Bimini and Orchid Island as well.听 As long as we have no new adverse developments with respect to reciprocal tariffs and interest rate volatility remains low, the sector should perform well.听 With respect to the macroeconomic backdrop, the economy has remained surprisingly resilient, but in the event that conditions deteriorate, the Federal Reserve appears likely to act and reduce over-night rates, which should buttress the economy.鈥�

Details of Second听Quarter 2025 Results of Operations

Orchid reported a net loss for the second quarter of 2025听of $33.6听尘颈濒濒颈辞苍 and generated a (4.66)% return on its book value for the quarter 鈥� not annualized. Orchid also raised $139.4 million during the quarter听and its stockholders'听equity increased from $855.9 million at March 31, 2025 to $912.0 million at June 30, 2025. As a result, Bimini's advisory service revenues of approximately $3.8听尘颈濒濒颈辞苍 represented a 20% increase over the second quarter of 2024 and a 6% increase over the first quarter of 2025.听

Royal Palm sold approximately $9.8 million of its MBS portfolio in the second quarter of 2025听after increasing its MBS holdings throughout 2024. Interest revenue increased 23% over the second quarter of 2024, but decreased 9% from the first quarter of 2025.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 78% over the second quarter of 2024, but decreased by approximately 7% from the first听quarter of 2025 owing primarily to the sale of assets in the MBS portfolio.听 These amounts represent the net interest income from the investment portfolio听and do not include interest charges on our trust preferred or other long-term debt.

Interest charges on the trust preferred and other long-term debt of $0.54 million were听virtually unchanged from the first quarter of 2025听and were down 11% from the second听quarter of 2024. Expenses of $2.82 million decreased by 4% from the first quarter of 2025听and increased by 1% over the second quarter of 2024.听 Bimini recorded an income tax provision of $6.5 thousand for the second 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June 30, 2025, Bimini鈥檚 statement of operations included a fair value adjustment of $(0.3) 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June 30, 2025, Bimini recorded听$3.8听尘颈濒濒颈辞苍听in advisory services revenue for managing Orchid鈥檚 portfolio, consisting of听$3.0 million 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June 30, 2025听was $0.74.听The Company computes book value per share by dividing total stockholders' equity by the total number of outstanding shares of the Company's Class A Common Stock. At听June 30, 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 June 30, 2025听and March 31, 2025, and the return on invested capital for each sub-portfolio for the three-month period ended June 30, 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 (4.1)%听and 1.9%, respectively, for the three months ended听June 30, 2025. The combined portfolio generated a return on invested capital of approximately (2.9)%.

Prepayments

For the听second quarter of 2025, 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 9.9%. Prepayment rates on the two MBS sub-portfolios were as follows (in CPR):

Portfolio

The following tables summarize the MBS portfolio as of June 30, 2025听and听December 31, 2024:

Financing and Liquidity

As of June 30, 2025, the Company had outstanding repurchase obligations of approximately $101.7 million with a net weighted average borrowing rate of 4.49%. These agreements were collateralized by MBS with a fair value, including accrued interest, of approximately $107.8 million. At June 30, 2025, the Company鈥檚 liquidity was approximately $5.7 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 June 30, 2025.

Summarized Consolidated Financial Statements

The following is a summarized presentation of the unaudited consolidated balance sheets as of June 30, 2025, and December 31, 2024, and the unaudited consolidated statements of operations for the six and three month periods听ended June 30, 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, August 1, 2025, at 10:00 AM ET. Participants can register and receive dial-in information听at听https://register-conf.media-server.com/register/BI93827b97dab34b2f8cabd3a04f5bddd5.听A live audio webcast of the conference call can be accessed at听https://edge.media-server.com/mmc/p/jgk2gti4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