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Orchid Island Capital(ORC) - 2024 Q1 - Quarterly Results
ORCOrchid Island Capital(ORC)2024-04-25 20:23

Financial Performance - Net income for Q1 2024 was 19.8million,or19.8 million, or 0.38 per common share, compared to 3.5million,or3.5 million, or 0.07 per common share, in Q1 2023[6][7]. - For the quarter ended March 31, 2024, the total return was 23,514,000,comparedto23,514,000, compared to 8,534,000 for the same period in 2023, representing a significant increase[46]. - The net income for the quarter was 19,776,000,upfrom19,776,000, up from 3,530,000 in the prior year, indicating a substantial growth in profitability[46]. - Interest income increased to 48,871,000from48,871,000 from 38,012,000 year-over-year, reflecting a growth of approximately 28.5%[46]. Book Value and Equity - Book value per common share increased to 9.12asofMarch31,2024,reflectinga9.12 as of March 31, 2024, reflecting a 0.02 increase during the quarter[6][7]. - As of March 31, 2024, the company's stockholders' equity was 481.6million,withabookvaluepershareof481.6 million, with a book value per share of 9.12[26]. - The book value per share increased to 9.12from9.12 from 9.10, reflecting a slight improvement in shareholder value[45]. Portfolio and Investments - As of March 31, 2024, total portfolio fair value was 3.88billion,withFannieMaesecuritiescomprising70.13.88 billion, with Fannie Mae securities comprising 70.1% and Freddie Mac securities 29.9%[9]. - Approximately 95.6% of the company's investable capital was allocated to the pass-through RMBS portfolio as of March 31, 2024, consistent with the allocation at December 31, 2023[27]. - The return on invested capital for the pass-through RMBS portfolio was approximately 6.2%, while the structured RMBS portfolio generated a return of 3.6%, leading to a combined return of approximately 6.1%[32]. - The market value of the pass-through RMBS portfolio decreased from 3,877.1 million on December 31, 2023, to 3,864.5milliononMarch31,2024[29].LeverageandLiquidity−Theadjustedleverageratiowas7.7to1,withoutstandingrepurchaseobligationsofapproximately3,864.5 million on March 31, 2024[29]. Leverage and Liquidity - The adjusted leverage ratio was 7.7 to 1, with outstanding repurchase obligations of approximately 3.71 billion and a net weighted average borrowing rate of 5.46%[12]. - The adjusted leverage ratio as of March 31, 2024, was 7.7:1, down from 8.4:1 in the previous year, indicating improved capital efficiency[47]. - Orchid maintained a strong liquidity position of 215.7million,representing45215.7 million, representing 45% of stockholder's equity as of March 31, 2024[6][12]. Dividends - The company declared a dividend of 0.12 per share on April 10, 2024, to be paid on May 30, 2024[24]. - The total dividends declared since the company's IPO in February 2013 amounted to 633.7million,withaper−sharetotalof633.7 million, with a per-share total of 66.93[25]. - The dividends declared per common share decreased to 0.360from0.360 from 0.480 year-over-year[46]. Market Conditions and Future Outlook - The yield on average Agency RMBS rose from 4.71% in Q4 2023 to 5.03% in Q1 2024, while repurchase agreement borrowing costs increased from 5.15% to 5.54%[7]. - Future performance of Agency RMBS remains uncertain, influenced by economic conditions and potential Fed actions on interest rates[5]. - The effective duration of the portfolio increased to 4.550, indicating a higher sensitivity to interest rate changes compared to 4.400 at the end of 2023[11]. - The company plans to continue adding higher coupon securities to mitigate the lower carry of legacy assets[4]. Other Financial Metrics - The company reported a total of 451.1millioninshortpositionsfor5−YearT−Notefuturescontracts,valuedatapriceof451.1 million in short positions for 5-Year T-Note futures contracts, valued at a price of 107.02, and 354.6millionfor10−YearT−Notefuturescontracts,valuedat354.6 million for 10-Year T-Note futures contracts, valued at 110.80[17]. - The company had outstanding repurchase agreement balances of 13.7millionsecuredbyinterest−onlysecuritiesasofMarch31,2024[30].−Thecumulativegains(losses)recordedonopenfuturespositionsfrominceptionwererepresentedbyopenequity,whichwasnegativeforcertainpositions[1].−Thecompanyreportednetcarryingvaluesfor30−YearTBAsecuritiesasofMarch31,2024,withatotalof13.7 million secured by interest-only securities as of March 31, 2024[30]. - The cumulative gains (losses) recorded on open futures positions from inception were represented by open equity, which was negative for certain positions[1]. - The company reported net carrying values for 30-Year TBA securities as of March 31, 2024, with a total of (326.5) million[22]. - The total assets as of March 31, 2024, were 4,214,662,000,adecreasefrom4,214,662,000, a decrease from 4,264,947,000 at the end of 2023[45]. - The company repurchased a total of 332,773 shares at an aggregate cost of approximately $2.8 million during the three months ended March 31, 2024[38].