February 2026 Monthly Dividend of $0.12 Per Share of Common StockRMBS Portfolio Characteristics as of January 31, 2026Next Dividend Announcement Expected March 18, 2026 VERO BEACH, Fla., Feb. 11, 2026 (GLOBE NEWSWIRE) -- Orchid Island Capital, Inc. (the “Company”) (NYSE: ORC) announced today that the Board of Directors of the Company declared a monthly cash dividend for the month of February 2026. The dividend of $0.12 per share will be paid March 30, 2026 to holders of record of the Company’s common stock ...

Core Viewpoint - Orchid Island Capital (ORC) is an agency mortgage REIT with a historically poor performance track record, making it a less favorable investment option in many situations [2][14]. Group 1: Company Overview - ORC primarily invests in agency mortgage-backed securities and has not historically performed well, leading to significant capital erosion for investors [2][9]. - The current trading price of ORC is around its book value, which is considered too high given its poor historical performance [14]. Group 2: Performance Metrics - The book value and share price of ORC have shown a declining trend over time, with significant losses reported in various quarters [9][12]. - ORC's performance compared to other agency mortgage REITs has been notably poor, with substantial declines in total return percentages during various quarters [11]. Group 3: Investment Strategy - The investment strategy of ORC involves buying fixed-rate agency MBS and hedging duration risk using instruments like LIBOR swaps or futures contracts [10]. - Investors have occasionally found opportunities to trade ORC shares when valuations collapse below historical levels, although this is not currently the case [3][14]. Group 4: Financial Insights - The financial statements indicate that ORC has faced challenges with net interest income and has incurred losses on mortgage-backed securities [21]. - Management fees and operating expenses have increased, raising concerns about the sustainability of dividends for common shareholders [18][31]. Group 5: Market Sentiment - Investor sentiment towards agency mortgage REITs has improved recently, attributed to a reasonable spread between agency mortgages and Treasury rates, but caution is advised regarding reliance on historical performance [23][24]. - Preferred shares in the mortgage REIT sector are recommended for investors seeking lower volatility and more reliable dividend levels compared to common shares [27][28].

Core Viewpoint - Orchid Island Capital (ORC) is an agency mortgage REIT with a historically poor performance track record, making it a less favorable investment option in many situations [2][14]. Group 1: Company Overview - ORC primarily invests in agency mortgage-backed securities and has not historically performed well, leading to significant capital erosion for investors [2][9]. - The current trading price of ORC is around its book value, which is considered too high given its poor historical performance [14]. Group 2: Performance Metrics - The book value and share price of ORC have shown a clear declining trend over time, with investors experiencing substantial principal loss despite receiving dividends [7][9]. - A reverse split has affected the historical price per share, making it appear higher than it was, but the percentage decline remains accurate [9]. Group 3: Market Sentiment and Valuation - Valuation is typically anchored by book value, but earnings and dividend levels also significantly impact investor sentiment, which can lead to fluctuations in the price-to-book ratio [5][12]. - Investors are advised to be cautious about relying too heavily on historical performance metrics, as they may not accurately reflect current market conditions [23]. Group 4: Investment Strategy - Investors may find opportunities to trade ORC shares when valuations drop below historical levels, although this is not currently the case [3]. - Preferred shares in the mortgage REIT sector are recommended for investors seeking lower volatility and more reliable dividend levels compared to common shares [27][28]. Group 5: Financial Performance - For the nine months ended September 30, 2025, ORC reported net interest income of $69.736 million, with total expenses of $14.663 million, leading to a net income of $55.622 million [21]. - The preferred shares maintain a base value of $25, providing stability in dividend calculations despite fluctuations in common share book value [29]. Group 6: Future Outlook - The current dividend of ORC is considered unsustainable given its book value, indicating a high likelihood of future cuts [31]. - The spread between agency mortgages and Treasury rates has declined, which may affect the net interest income generated by mortgage REITs like ORC [24].

Core Insights - The article does not provide specific insights or analysis regarding any companies or industries, focusing instead on disclosures and disclaimers related to investment positions and opinions [1][2] Group 1 - There is no stock, option, or similar derivative position held by the author in any mentioned companies, nor are there plans to initiate such positions in the near future [1] - The article expresses personal opinions of the author and does not reflect the views of Seeking Alpha as a whole [2] - The content does not provide any investment recommendations or advice regarding suitability for particular investors [2]

Core Viewpoint - Orca Energy Group Inc. has received a judgment from the Court of Appeal of Tanzania regarding its contractual dispute with African Geophysical Services LLP, resulting in a revised damages award [1][3]. Group 1: Legal Proceedings - In February 2025, the High Court of Tanzania awarded AGS damages totaling US$23,100,451 against Orca's subsidiary, PanAfrican Energy Tanzania Limited, along with legal costs and interest at a rate of 7% per annum [2]. - The Court of Appeal partially allowed Orca's appeal, reducing the damages awarded to AGS to US$17,912,445 and dismissing claims amounting to US$5,125,006 [3]. Group 2: Company Actions - The Company is currently reviewing the Appeal Judgment to understand the Court's reasoning and its financial and legal implications [4]. - Following the review, the Company will consider all available legal options but does not plan to disclose further information unless deemed necessary by the board of directors [4]. Group 3: Company Overview - Orca Energy Group Inc. is engaged in natural gas development and supply in Tanzania through its subsidiary, PAET, and trades on the TSX Venture Exchange under the symbols ORC.A and ORC.B [6].

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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, with stockholder equity approximately $1.4 billion [6] - The total return for Q4 was 7.8%, compared to 6.7% for Q3 [6] 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, with a year-end balance of $10.6 billion, reflecting a growth of approximately 27% during the quarter [7] - The leverage for Q4 remained at 7.4%, consistent with Q3 [7] - Liquidity at the end of Q4 was 57.7%, slightly up from 57.1% at the end of Q3 [7] Market Data and Key Metrics Changes - Interest rate volatility was low throughout the quarter, with the Treasury curve remaining steady [9][10] - The spread of current coupon mortgages to the ten-year Treasury tightened to about 80 basis points, reflecting a significant change since year-end [11][12] - The market saw strong performance in lower coupon MBS, particularly after the announcement of GSEs buying up to $200 billion of mortgages [13] Company Strategy and Development Direction - The company focused on acquiring agency specified pools with call protection, targeting par to slight premiums [22][56] - A strategic shift towards higher coupon MBS was noted, with a focus on production and premium coupons in the 5%-6.5% range [26][34] - The company aims to maintain a flat duration profile and manage leverage tightly, anticipating potential inflationary pressures [38] 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 economic conditions [40][41] - The company noted that while expenses increased, they did so at a lower rate than asset growth, leading to a reduced expense ratio [44] - The outlook for prepayment speeds is expected to moderate, which would improve carry for the company [37] Other Important Information - The average repo rate declined from 4.33% at the beginning of the quarter to 3.98% by quarter end, reflecting improvements in the funding environment [28] - The company maintained a stable hedge position, with 69% of outstanding repo hedged, slightly down from 70% in Q3 [29] 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 [50][52] Question: Thoughts on prepayments - Management noted that the portfolio is targeted at par to slight premiums, focusing on modest prepayments without overpaying for protection [55][56] Question: Capacity for further expense reduction - Management highlighted that most expense increases were due to management fees, with non-management fee expenses rising modestly, suggesting potential for further reduction [66][68]

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]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported a net income of $103.4 million, equating 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 [6] - Stockholder equity at the end of Q4 was approximately $1.4 billion, with dividends paid during the quarter remaining at $0.36 [6] - The total return for Q4 was 7.8%, compared to 6.7% for Q3 [6] Business Line Data and Key Metrics Changes - The average mortgage-backed securities (MBS) during Q4 was $9.5 billion, compared to $7.7 billion in Q3, with a year-end balance of $10.6 billion, reflecting a growth of approximately 27% during the quarter [7] - The leverage for Q4 remained at 7.4%, consistent with Q3 [7] - Liquidity at the end of Q4 was 57.7%, slightly up from 57.1% at the end of Q3 [7] Market Data and Key Metrics Changes - Interest rate volatility was low throughout the quarter, with the treasury curve remaining steady [9][10] - The spread of the current coupon mortgage to the ten-year Treasury tightened to about 80 basis points, reflecting a significant change since year-end [11] - Prepayment speeds increased to 15.7% in Q4 from 10.1% in Q3 [8] Company Strategy and Development Direction - The company focused on acquiring agency specified pools with call protection, targeting par to slight premiums [22][56] - A strategic shift towards higher coupon MBS was noted, with an emphasis on production and premium coupons [26] - The company plans to continue managing leverage tightly while maintaining a flat duration profile to mitigate risks associated with interest rate movements [38] 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 economic conditions [40][41] - The company noted that while mortgages are not as attractive as a year ago, there is still potential for continued performance improvement [41] - Management highlighted the importance of maintaining a low expense ratio, which has improved to 1.7% at the end of 2025 [44] Other Important Information - The company doubled its equity base and MBS portfolio over the course of 2025, capitalizing on wide MBS spreads [24] - The average repo rate declined from 4.33% at the beginning of the quarter to 3.98% by quarter end, reflecting favorable funding conditions [28] 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 prepayment speeds - Management noted that the portfolio is constructed to target modest prepayments and emphasized the focus on mid-tier call protection [56][58] Question: Capacity for further expense reduction - Management stated that most expense increases were related to management fees, with non-management fee expenses rising only modestly, indicating potential for further expense reduction [67][69]

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," " ...