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Orchid Island Capital Announces Fourth Quarter 2024 Results
ORCOrchid Island Capital(ORC) Newsfilter·2025-01-30 21:02

Core Viewpoint - Orchid Island Capital, Inc. reported its financial results for the fourth quarter and full year of 2024, highlighting a positive return despite challenging market conditions in the Agency RMBS sector [5][6][7]. Fourth Quarter 2024 Results - The company achieved a net income of 5.6million,or5.6 million, or 0.07 per common share, compared to 27.1millionforthesameperiodin2023[9].−Netinterestincomeforthequarterwas27.1 million for the same period in 2023 [9]. - Net interest income for the quarter was 8.1 million, with total expenses of 4.4million[6].−Thetotalreturnforthefourthquarterwas0.604.4 million [6]. - The total return for the fourth quarter was 0.60%, consisting of 0.36 in dividends and a 0.31decreaseinbookvaluepershare[6][10].−TheaverageAgencyRMBSportfolioincreasedfrom0.31 decrease in book value per share [6][10]. - The average Agency RMBS portfolio increased from 5.0 billion in Q3 2024 to 5.3billioninQ42024[9].Full−Year2024Results−Forthefullyear,netincomewas5.3 billion in Q4 2024 [9]. Full-Year 2024 Results - For the full year, net income was 37.8 million, or 0.57percommonshare,asignificantrecoveryfromanetlossof0.57 per common share, a significant recovery from a net loss of 39.2 million in 2023 [11]. - Interest income for the year was approximately 241.6million,withayieldontheaverageAgencyRMBSof5.25241.6 million, with a yield on the average Agency RMBS of 5.25% [11]. - The total return for 2024 was 4.73%, compared to (8.63)% in 2023 [7]. Other Financial Highlights - The book value per common share was 8.09 as of December 31, 2024, reflecting a decrease of 1.01fortheyear[12][34].−Thecompanymaintainedastrongliquiditypositionwith1.01 for the year [12][34]. - The company maintained a strong liquidity position with 353.6 million in cash and cash equivalents, representing 53% of stockholder's equity [6][19]. - The adjusted leverage ratio was 7.5:1, with outstanding repurchase obligations of approximately 5,025.5million[19].ManagementCommentary−TheCEOnotedashiftinthefixedincomemarketoutlook,withinflationremainingabovetheFederalReserve′stargetandapro−growthagendafollowingtheRepublicanparty′snationalelectionsuccess[5].−Thecompanyadoptedabar−bellstrategyinitsAgencyRMBSportfolio,focusingonhighercouponholdingswhilemaintainingsignificantlowercouponsecurities[8].Prepayments−ForQ42024,thecompanyreceived5,025.5 million [19]. Management Commentary - The CEO noted a shift in the fixed income market outlook, with inflation remaining above the Federal Reserve's target and a pro-growth agenda following the Republican party's national election success [5]. - The company adopted a bar-bell strategy in its Agency RMBS portfolio, focusing on higher coupon holdings while maintaining significant lower coupon securities [8]. Prepayments - For Q4 2024, the company received 185.0 million in principal repayments and prepayments, resulting in a 3-month constant prepayment rate (CPR) of approximately 10.5% [13]. Portfolio Characteristics - As of December 31, 2024, the total fair value of the mortgage assets was 5.25billion,withfixed−rateRMBSmakingup99.75.25 billion, with fixed-rate RMBS making up 99.7% of the portfolio [15][16]. - The weighted average coupon for the fixed-rate RMBS was 5.03%, with an average maturity of 330 months [15]. Stock Offerings and Repurchase Program - The company issued 19,842,089 shares under an equity distribution agreement for gross proceeds of approximately 164.9 million through December 31, 2024 [42]. - Since the inception of the stock repurchase program, the company repurchased a total of 5,144,602 shares at an aggregate cost of approximately $77.5 million [44].