Oct 14, 2026, 5:15 PM ETReal Estate

Orchid Island Capital — Q3 2026 Earnings Summary

ORCORCHID ISLAND CAPITAL INC

Financial Performance

Estimated GAAP net loss of $0.90 per share for the quarter ended September 30, 2026.
Estimated book value per share of $6.02 as of September 30, 2026, down from a decrease of $1.20 per share from June 30, 2026.
Estimated total return on equity of (12.5)% for the quarter, comprised of $0.30 per share in dividends and a $1.20 per share decline in book value.
Preliminary estimated total stockholders' equity of approximately $1.2 billion as of September 30, 2026.
Estimated net realized and unrealized losses on RMBS and derivative instruments of $1.17 per share for the quarter.
Total dividends declared during the quarter were $0.30 per share.
RMBS assets had a fair value of $10.765 billion (Total Mortgage Assets) with a face value of $11.270 billion.
Total borrowings (repurchase agreements) stood at $10.362 billion with a weighted average repo rate of 3.99%.

The company intends to make regular monthly cash distributions to common stockholders.
To qualify as a REIT, the company must distribute annually an amount at least equal to 90% of its REIT taxable income.
The company has not established a minimum distribution payment level and is not assured of its ability to make future distributions.
Next dividend announcement expected on November 10, 2026.

Portfolio consists of Agency RMBS categorized as (i) traditional pass-through Agency RMBS and (ii) structured Agency RMBS.
Total Pass-Through RMBS comprised 99.89% of the portfolio with a fair value of $10.754 billion.
Total Structured RMBS comprised 0.11% of the portfolio with a fair value of $11.4 million.
Asset allocation by agency: Fannie Mae (52.1%) and Freddie Mac (47.9%).
96.0% of assets were classified as Whole Pool Assets under the Investment Company Act of 1940, while 4.0% were Non-Whole Pool Assets.
Weighted average coupon on total mortgage assets was 5.51% with a weighted average coupon of 6.45% on the portfolio.
Weighted average maturity of the portfolio was 332 months (27.7 years) with a weighted average age of 22 years.

The company invests on a leveraged basis in Agency RMBS issued by Fannie Mae, Freddie Mac, or Ginnie Mae.
Portfolio risk measures include modeled interest rate sensitivity: a 50 basis point increase in rates would result in a loss of $21.0 million, while a 50 basis point decrease would result in a loss of $4.2 million (Rate Shock Grand Total).
Hedge portfolio includes $10.248 billion in notional balance across SOFR futures, Treasury futures, swaps, and TBA shorts to manage interest rate risk.
Borrowings are diversified across 30 counterparties, with the top five (Citigroup, Hidden Road, ABN AMRO, StoneX, Marex) representing 21.4% of total borrowings.

Net income per share calculated under GAAP differs from REIT taxable income, which is the basis for dividend declarations.
Forward-looking statements regarding distributions are not guaranteed and are subject to factors discussed in the "Risk Factors" section of the 2025 Form 10-K.
The company is subject to income tax on undistributed taxable income and excise taxes if distribution thresholds are not met.
Preliminary financial figures are subject to change and review by the independent registered public accounting firm.
Interest rate sensitivity modeling assumes instantaneous parallel shifts and constant SOFR option-adjusted spreads; actual results may differ materially.

The Board of Directors declared a monthly cash dividend of $0.10 per share for October 2026.
Management views REIT taxable income as a better indication of income available for dividends than GAAP net income.
Dividend declarations are based on estimates of REIT taxable income for the current quarter and calendar year, alongside longer-term income estimates.
The company plans to continue regular monthly cash distributions.

October 2026 monthly dividend of $0.10 per share will be paid November 27, 2026 to holders of record on October 30, 2026.
Shares outstanding decreased from 199.6 million (June 30, 2026) to 194.7 million (September 30, 2026) to 193.0 million (October 14, 2026).
The company is managed by Bimini Advisors, LLC, a registered investment adviser.
The RMBS portfolio includes significant exposure to 30-year fixed-rate securities, with the 30yr 5.5% tranche representing 35.22% of the portfolio and the 30yr 6.0% tranche representing 27.10%.
The portfolio's weighted average coupon is 5.53% for pass-throughs and 3.41% for structured RMBS.
The longest maturity for borrowings is September 3, 2027, with a weighted average maturity of 26 days.