Bimini Capital Management Announces Second Quarter 2025 Results

Core Insights - Bimini Capital Management reported modest net income of approximately $43 thousand for Q2 2025, despite challenges in the mortgage REIT sector due to market turmoil from tariffs [2][3][9] - The advisory services segment showed strong performance with a 20% increase in revenues for Q2 2025 compared to the same period in 2024 [3][5] - The company anticipates growth in its RMBS portfolio as market conditions improve and cash positions increase [3][4] Financial Performance - For the six months ended June 30, 2025, Bimini recorded net income of $0.6 million, or $0.06 per share, with a return on stockholders' equity of 8.7% [2][9] - Advisory service revenues for Q2 2025 were approximately $3.8 million, reflecting a 20% increase over Q2 2024 [5][28] - Interest revenues increased by 23% for Q2 2025 compared to Q2 2024, despite a loss of $1.3 million in the MBS segment [3][6] Market Conditions - The mortgage REIT sector faced losses in Q2 2025, but market conditions are expected to improve with lower interest rate volatility and favorable trading levels for Agency RMBS [2][4] - The Federal Reserve is likely to reduce overnight rates if economic conditions deteriorate, which could support the sector [4] Portfolio and Capital Allocation - As of June 30, 2025, the total market value of Bimini's MBS portfolio was approximately $107.6 million, down from $122.3 million at the end of 2024 [18][25] - The company received approximately $3.3 million in principal repayments and prepayments during Q2 2025, resulting in a constant prepayment rate of approximately 9.9% [17] - The effective duration of the MBS portfolio was 2.931, indicating sensitivity to interest rate changes [19] Financing and Liquidity - Bimini had outstanding repurchase obligations of approximately $101.7 million as of June 30, 2025, with a net weighted average borrowing rate of 4.49% [20][22] - The company's liquidity was approximately $5.7 million, consisting of unpledged MBS and cash equivalents [20] Upcoming Events - An earnings conference call is scheduled for August 1, 2025, at 10:00 AM ET to discuss the results [32]