Orchid Island Capital (NYSE:ORC) Q4 2025 Earnings call January 30, 2026 10:00 AM ET Company ParticipantsHunter Haas - CFO and CIOJerry Sintes - ControllerMelissa Alfonso - Head of Investor RelationsMikhail Goberman - VP of Equity ResearchRobert Cauley - Chairman and CEOOperatorday, and thank you for standing by. Welcome to the Orchid Island Capital Fourth Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a questio ...

Financial Data and Key Metrics Changes - In Q4 2025, the company reported a net income of $103.4 million, translating to $0.62 per share, an increase from $0.53 in Q3 [6] - The book value at the end of Q4 was $7.54, up from $7.33 at the end of Q3 [7] - The total return for Q4 was 7.8%, compared to 6.7% in Q3 [7] Business Line Data and Key Metrics Changes - The average mortgage-backed securities (MBS) portfolio was $9.5 billion in Q4, compared to $7.7 billion in Q3, reflecting a growth of approximately 27% [8] - The leverage for Q4 remained stable at 7.4%, consistent with Q3 [8] - Liquidity at the end of Q4 was 57.7%, slightly up from 57.1% in Q3 [8] Market Data and Key Metrics Changes - Prepayment speeds increased to 15.7% in Q4 from 10.1% in Q3 [9] - The treasury curve showed low volatility throughout the quarter, with interest rates remaining steady [10][11] - The spread of current coupon mortgages to the ten-year Treasury tightened to about 80 basis points [12][13] Company Strategy and Development Direction - The company focused on acquiring agency specified pools with call protection, targeting par to slight premiums [23][56] - A strategic shift towards higher coupon MBS was noted, with a focus on production and premium coupons [26] - The company aims to maintain a flat duration profile to manage interest rate risk effectively [33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for further mortgage tightening, driven by GSE activity and favorable market conditions [39][41] - The company anticipates that prepayment speeds may moderate, which would improve carry [37] - Management highlighted the importance of maintaining a low expense ratio, which currently stands at 1.7% [44] Other Important Information - The company paid dividends of $0.36 during the quarter, maintaining the same rate for the past two years [7] - The average repo rate decreased from 4.33% at the beginning of the quarter to 3.98% by quarter end [20] - The weighted average current price of the portfolio at year-end was $102.5, reflecting a strategic shift in coupon allocation [61] Q&A Session Summary Question: Current book value update - Management indicated that the current book value is slightly up, inclusive of the dividend accrual, reflecting a 1.6% increase [51][53] Question: Thoughts on prepayments - Management noted that the portfolio is targeted at par to slight premiums, focusing on modest prepayments without overpaying for protection [56][58] Question: Capacity for further expense reduction - Management stated that most expense increases were due to management fees, with non-management expenses rising only modestly, indicating potential for further reduction [70][72]

Orchid Island Capital (NYSE:ORC) Q4 2025 Earnings call January 30, 2026 10:00 AM ET Speaker4day, and thank you for standing by. Welcome to the Orchid Island Capital Fourth Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. T ...

8 Q4 2025 Earnings Supplemental Materials January 30, 2025 1 Disclaimers Forward-Looking Information This presentation contains forward-looking statements and information. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements include statements preceded by, followed by or that include the words "may," "could," "would," "should," "believe," "expect," "anticipate," "plan," "estimate," "target," "project," " ...

Orchid Island Capital, Inc. (NYSE:ORC) ranks among the most undervalued REIT stocks to buy right now. On December 15, Compass Point began coverage of Orchid Island Capital, Inc. (NYSE:ORC), rating it Neutral and setting a $7.50 price target on the stock. Compass Point said that political and policy concerns will come out as significant factors for mortgage asset performance in the following quarters, generating prospects for MBS investors. Even with these favorable aspects, Compass Point was concerned th ...

Orchid Island Capital, Inc. (NYSE: ORC) announced its fourth-quarter 2025 results on January 29, 2026, posting solid performance driven by favorable conditions in the Agency residential mortgage-backed securities (RMBS) market. The company reported core earnings per share (EPS) of approximately $0.19, surpassing consensus analyst estimates of around $0.17–$0.18. (Core EPS excludes volatile realized and unrealized gains/losses on investments and derivatives, which analysts often use as the key benchmark for ...

VERO BEACH, Fla., Jan. 29, 2026 (GLOBE NEWSWIRE) -- Orchid Island Capital, Inc. (NYSE:ORC) ("Orchid” or the "Company"), a real estate investment trust ("REIT"), today announced results of operations for the three and twelve month periods ended December 31, 2025. Fourth Quarter 2025 Results Net income of $103.4 million, or $0.62 per common share, which consists of: Net interest income of $38.5 million, or $0.23 per common shareTotal expenses of $5.8 million, or $0.04 per common shareNet realized and unrealiz ...

Financial Performance - Estimated book value per share as of December 31, 2025, is $7.54, with total stockholders' equity approximately $1.4 billion[4] - Estimated net income per share for the quarter ended December 31, 2025, is $0.62, including $0.43 per share of net realized and unrealized gains on RMBS and derivative instruments[5] - Total dividends declared during the quarter were $0.36 per share, indicating a payout ratio of approximately 58% based on estimated net income[5] - Estimated total return on equity for the quarter ended December 31, 2025, is 7.8%, comprising $0.57 per share from dividends and an increase in book value[6] - The estimated total return on equity includes a $0.21 increase in book value per share from September 30, 2025[6] Shareholder Information - The company had 181,985,900 shares of common stock outstanding as of December 31, 2025, up from 148,239,401 shares as of September 30, 2025[3] RMBS Portfolio - The RMBS portfolio characteristics include a total of $10.68 billion in mortgage assets with an average coupon of 5.62%[11] - The company’s RMBS portfolio is primarily composed of Agency RMBS, focusing on traditional pass-through and structured RMBS[8] - Total mortgage assets amounted to $10,628.7 million, with Fannie Mae assets at $5,690.965 million (53.5%) and Freddie Mac assets at $4,937.693 million (46.5%)[14] - Whole pool assets represented 94.0% of total mortgage assets, amounting to $9,993.971 million[15] - Non-whole pool assets accounted for 6.0% of total mortgage assets, valued at $634.687 million[15] Borrowings - Total borrowings reached $10,115.466 million with a weighted average rate of 3.98%[16] - The largest counterparty for borrowings was Citigroup Global Markets Inc. with $527.566 million, accounting for 5.2% of total borrowings[16] - The longest maturity of borrowings is 11/13/2026, with an average maturity of 39 days[16] - The average repo rate across borrowings was 4.03%[16] Futures Contracts - Five-year Treasury futures contracts valued at $109.30 with a market value of the short position at $133.9 million[12] - Ten-year Treasury futures contracts valued at $112.44 with a market value of the short position at $101.2 million[12] Risk Factors - Forward-looking statements indicate that actual results may differ and are subject to review by the company's independent registered public accounting firm[9] - Rate shock grand total recorded at $(30,087) thousand[13] Investment Management - The company’s investment strategy is managed by Bimini Advisors, LLC, a registered investment adviser[8]

Core Insights - Orchid Island Capital, Inc. announced its estimated fourth quarter 2025 results and portfolio characteristics as of December 31, 2025 [1] Share Information - As of January 14, 2026, the Company had 183,345,932 shares of common stock outstanding, an increase from 181,985,900 shares as of December 31, 2025, and 148,239,401 shares as of September 30, 2025 [2] Book Value Per Share - The estimated book value per share as of December 31, 2025, was $7.54, calculated by dividing total stockholders' equity of approximately $1.4 billion by the total number of outstanding shares [3] Net Income and Gains - The estimated net income per share for the quarter ended December 31, 2025, was $0.62, which includes an estimated $0.43 per share of net realized and unrealized gains on RMBS and derivative instruments [4][9] - Total dividends declared during the quarter were $0.36 per share [4] Total Return on Equity - The estimated total return on equity for the quarter ended December 31, 2025, was 7.8%, calculated as the sum of dividends declared and changes in book value divided by stockholders' equity at the beginning of the quarter [5][9] RMBS Portfolio Characteristics - The Company invests in Agency RMBS, focusing on traditional pass-through Agency RMBS and structured Agency RMBS [6] - As of December 31, 2025, the total mortgage assets were approximately $10.63 billion, with Fannie Mae and Freddie Mac representing 53.5% and 46.5% of the portfolio, respectively [13] Borrowings and Counterparty Exposure - Total borrowings as of December 31, 2025, amounted to $10.12 billion, with a weighted average rate of 3.98% [15] - The Company has significant exposure to various counterparties, with Citigroup Global Markets Inc. being the largest at $527.57 million [15]

Core Points - Orchid Island Capital, Inc. declared a monthly cash dividend of $0.12 per share for January 2026, payable on February 26, 2026, to shareholders of record on January 30, 2026, with an ex-dividend date also on January 30, 2026 [1] - The company intends to make regular monthly cash distributions to its common stockholders, and to qualify as a real estate investment trust (REIT), it must distribute at least 90% of its REIT taxable income annually [2] - The estimated results for the fourth quarter of 2025, including estimated book value per share and estimated GAAP net income per share, will be released on January 14, 2026, and will be subject to audit [3] - The company will release its year-end and fourth quarter 2025 results on January 29, 2026, followed by an earnings conference call on January 30, 2026 [4] - Orchid Island Capital, Inc. is a specialty finance company that invests in Agency RMBS, focusing on traditional pass-through Agency RMBS and structured Agency RMBS [5] Additional Information - The company has not established a minimum distribution payment level and is not assured of its ability to make future distributions [2] - An audio archive of the earnings conference call will be available for 30 days after the call [4] - The company is managed by Bimini Advisors, LLC, a registered investment adviser [5]