Orchid Island Capital(ORC) - 2025 Q2 - Quarterly Results

Main Announcements & Financial Highlights This section outlines Orchid Island Capital's recent dividend declaration and preliminary financial results for the second quarter of 2025 Dividend Announcement Orchid Island Capital declared a $0.12 per share monthly cash dividend for July 2025, affirming its commitment to regular distributions to maintain REIT status by distributing at least 90% of taxable income annually July 2025 Dividend Details | Metric | Detail | | :--- | :--- | | Dividend per Share | $0.12 | | Record Date | July 31, 2025 | | Ex-Dividend Date | July 31, 2025 | | Payment Date | August 28, 2025 | - To qualify as a REIT, the Company must annually distribute at least 90% of its REIT taxable income to stockholders[3] - The next common stock dividend announcement is planned for August 13, 2025[2] Estimated Second Quarter 2025 Financial Results The company reported preliminary unaudited Q2 2025 results, including an estimated book value of $7.21 per share, a GAAP net loss of $(0.29) per share, and a negative total return on equity of (4.7)%, all subject to auditor review Q2 2025 Estimated Financial Highlights (as of June 30, 2025) | Metric | Value | | :--- | :--- | | Book Value per Share | $7.21 | | GAAP Net Loss per Share | $(0.29) | | Total Return on Equity | (4.7)% | | Total Stockholders' Equity | ~$912.0 million | - The total return of $(0.37) per share for the quarter was comprised of $0.36 in dividends per share and a decrease in book value of $(0.73) per share from March 31, 2025[7] - The estimated net loss includes approximately $0.45 per share of net realized and unrealized losses on Residential Mortgage-Backed Securities (RMBS) and derivative instruments[6] Common Stock Outstanding Trend | Date | Shares Outstanding | | :--- | :--- | | June 30, 2025 | 126,566,926 | | March 31, 2025 | 107,786,614 | RMBS Portfolio Characteristics (as of June 30, 2025) This section details the company's Residential Mortgage-Backed Securities (RMBS) portfolio composition, risk management, and counterparty exposures as of June 30, 2025 Portfolio Composition and Risk Profile As of June 30, 2025, the company's $7.0 billion mortgage asset portfolio is predominantly traditional pass-through RMBS, with a $(4.88) billion hedging strategy in place to manage interest rate risk Mortgage Asset Composition (Fair Value) | Asset Type | Fair Value ($) | % of Portfolio | | :--- | :--- | :--- | | Pass-Through RMBS | 6,978,561,000 | 99.79% | | Structured RMBS | 14,798,000 | 0.21% | | Total Mortgage Assets | $6,993,359,000 | 100.00% | - The largest holdings within the fixed-rate RMBS portfolio are securities with 6.0% and 6.5% coupons, which together constitute over 52% of the total portfolio fair value[12] Hedging Instruments (Notional Balance) | Hedge Type | Notional Balance ($) | | :--- | :--- | | Swaps | (3,843,300,000) | | Treasury Futures | (913,500,000) | | SOFR & ERIS Futures | (125,000,000) | | Total Hedges | $(4,881,800,000) | - After accounting for hedges, the portfolio's modeled sensitivity to a +50 basis point interest rate shock is a net loss of $(1.5) million, while a -50 basis point shock results in a net loss of $(22.2) million[12] Portfolio Allocation and Counterparty Exposure The company's RMBS portfolio consists entirely of Agency securities, primarily Fannie Mae and Freddie Mac, with $6.66 billion in diversified borrowings across 24 counterparties, the largest being Wells Fargo Bank at 5.8% RMBS Assets by Agency | Agency | Fair Value ($ thousands) | % of Portfolio | | :--- | :--- | :--- | | Fannie Mae | 4,421,357 | 63.2% | | Freddie Mac | 2,572,002 | 36.8% | | Total | $6,993,359 | 100.0% | - Under the Investment Company Act of 1940 test, 95.9% of the company's mortgage assets are classified as 'Whole Pool Assets'[15] Top 5 Borrowing Counterparties | Counterparty | Borrowings ($ thousands) | % of Total | | :--- | :--- | :--- | | Wells Fargo Bank, N.A. | 385,253 | 5.8% | | RBC Capital Markets, LLC | 382,428 | 5.7% | | J.P. Morgan Securities LLC | 348,072 | 5.2% | | Mirae Asset Securities (USA) Inc. | 338,514 | 5.1% | | ASL Capital Markets Inc. | 329,804 | 5.0% | | Total Borrowings | $6,655,879 | 100.0% |