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Bimini Capital Management — Third Quarter 2026 Earnings Summary

BMNM

  • Financial Performance:

    • Net income attributable to stockholders was $1.0 million ($0.10 per share) for the three months ended September 30, 2026, compared to $1.8 million ($0.18 per share) in the same period of 2025.
    • Net income attributable to stockholders was $2.2 million ($0.22 per share) for the nine months ended September 30, 2026, compared to $2.4 million ($0.24 per share) for the nine months ended September 30, 2025.
    • Advisory services revenue increased to $6.6 million for the quarter (from $4.5 million in Q3 2025) and $18.6 million for the nine months (from $11.9 million in the prior-year period).
    • Interest income from the MBS portfolio was $0.2 million for the quarter (down from $1.5 million in Q3 2025) and $1.7 million for the nine months (down from $4.9 million in the prior-year period).
    • Repurchase agreement funding costs were $0.1 million for the quarter (down from $1.2 million in Q3 2025) and $1.0 million for the nine months (down from $3.7 million in the prior-year period).
    • Operating expenses totaled $3.9 million for the quarter (up from $3.0 million in Q3 2025) and $12.5 million for the nine months (up from $8.7 million in the prior-year period).
    • Income tax provision was $0.1 million for the quarter (down from $0.4 million in Q3 2025) and $1.7 million for the nine months (up from $0.6 million in the prior-year period).
    • Book value per share was $1.47 at September 30, 2026, compared to $1.38 at June 30, 2026 and $1.26 at December 31, 2025.
    • Total stockholders' equity was $14.6 million at September 30, 2026, compared to $12.6 million at December 31, 2025.
    • Average yield on MBS was 6.49% for the quarter, compared to 5.79% in Q3 2025.
    • Average cost of funds was 3.89% for the quarter, compared to 4.59% in Q3 2025.
    • Average interest rate spread was 2.60% for the quarter, compared to 1.20% in Q3 2025.

  • Business Segments and Product Lines:

    • Bimini Advisors generated $5.0 million in advisory revenue from Orchid Island Capital, Inc. ("Orchid") for the quarter, including $4.1 million in management fees, $0.5 million in overhead reimbursements, and $0.4 million in repurchase, clearing, and administrative fees.
    • Orchid generated an economic return of (12.5%) for the third quarter of 2026; its outstanding shares declined by approximately 2.5% as it repurchased 4.9 million shares.
    • Tom Johnson Investment Management, LLC ("TJIM"), an 80%-owned subsidiary acquired on April 1, 2026, generated $1.69 million in advisory service revenues for the quarter.
    • TJIM's AUM was $1.70 billion as of September 30, 2026, compared to $1.73 billion as of June 30, 2026.
    • The Company's MBS portfolio fair value decreased to $14.5 million at September 30, 2026, from $88.9 million at December 31, 2025, following the sale of a significant portion of the portfolio to fund the TJIM acquisition.
    • The MBS portfolio consists of 14.8% Fannie Mae and 85.2% Freddie Mac securities as of September 30, 2026.
    • The MBS portfolio effective duration was 4.431 at September 30, 2026, compared to 2.229 at December 31, 2025.

  • Market and Competitive Landscape:

    • U.S. interest rates reached multi-decade high levels driven by fiscal deficits exceeding $2 trillion annually and high demand for capital from hyperscalers associated with AI buildouts.
    • Domestic equity markets generated modest positive returns in Q3 2026, while all fixed income sectors generated negative absolute returns.
    • TJIM's equity models trade at approximately 15 times forward earnings compared to roughly 19 times for the S&P 500, representing a 21% valuation discount.
    • TJIM portfolios have a weighted average market capitalization of $400–$500 billion, reflecting lower concentration in mega-cap constituents compared to the S&P 500's roughly $1.7 trillion.
    • The Company maintains an underweight allocation to corporate credit due to historically tight credit spreads.

  • Risks and Challenges:

    • The Company faces risks from severe market duress, including elevated interest rates and negative returns in fixed income markets.
    • The pivot to a diversified asset manager has resulted in a significantly smaller MBS investment portfolio, reducing interest income from that segment.
    • The Company's results are impacted by the performance of AI/hyperscalers, which negatively affected equity and investment grade credit markets.
    • Future rate increases could impact the value of the MBS portfolio, with an effective duration of 4.431 indicating a 4.431% decrease in value for a 1.0% rate increase.

  • Management Commentary and Tone:

    • CEO Robert E. Cauley stated the Company's pivot to a diversified asset manager with less reliance on the levered RMBS strategy is demonstrating benefits despite poor results in the Agency RMBS market.
    • Cauley expressed confidence that the Company remains well-positioned to generate positive results despite challenging market conditions.
    • CIO Richard Parry noted that TJIM's disciplined value and quality-oriented strategies continue to perform well, with high-quality fixed income investments becoming more attractive than in past years.
    • Parry indicated that investor and advisor rebalancing decisions may create reallocation opportunities for TJIM's fixed income model strategies.

  • Other Key Points:

    • Bimini acquired an 80% interest in Tom Johnson Investment Management, LLC ("TJIM") on April 1, 2026, for $1.6 billion in AUM at the time of closing.
    • Operating expenses for the quarter included $0.1 million in costs associated with the TJIM acquisition, and $1.1 million attributable to the consolidation of TJIM's operations.
    • Operating expenses for the nine months included $1.6 million in acquisition-related costs and $2.2 million attributable to TJIM consolidation.
    • The increase in the year-to-date income tax provision primarily reflected the reevaluation of the Company's tax valuation allowance in connection with the TJIM acquisition.
    • Bimini Advisors Holdings, LLC owns 80% of TJIM, which provides discretionary and non-discretionary investment advisory services to institutional investors and high-net-worth individuals.
    • The Company held $14.0 million in outstanding repurchase obligations with a net weighted average borrowing rate of 3.98% as of September 30, 2026.
    • Liquidity at September 30, 2026, was $10.1 million, consisting of unpledged MBS, U.S. Treasury securities, and cash equivalents.
    • The Company will discuss results on a conference call on November 6, 2026, at 10:00 AM ET.