Orchid Island Capital Announces May 2025 Monthly Dividend and April 30, 2025 RMBS Portfolio Characteristics

Rhea-AI Summary

Orchid Island Capital (NYSE: ORC) has declared a monthly cash dividend of $0.12 per share for May 2025, payable on June 27, 2025, to stockholders of record on May 30, 2025. The company's RMBS portfolio characteristics as of April 30, 2025, show total mortgage assets of $6.19 billion, with 61.1% in Fannie Mae and 38.9% in Freddie Mac securities. The portfolio has a weighted average coupon of 5.37% and consists primarily of 30-year fixed-rate RMBS (98.13% of portfolio). The company maintains significant hedging positions with total borrowings of $5.82 billion across 24 counterparties at a weighted average repo rate of 4.47%.

Positive

• Monthly dividend maintained at $0.12 per share
• Strong portfolio diversification with 95.2% in whole pool assets
• Comprehensive hedging strategy in place to manage interest rate risk
• Well-diversified borrowing base across 24 counterparties

Negative

• High leverage with $5.82 billion in borrowings against $6.19 billion in assets
• Relatively high borrowing costs with average repo rate of 4.47%
• Portfolio concentrated in 30-year fixed-rate RMBS (98.13%), limiting diversification

News Market Reaction – ORC

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+0.56% News Effect

On the day this news was published, ORC gained 0.56%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

	●	May 2025 Monthly Dividend of $0.12 Per Share of Common Stock
	●	RMBS Portfolio Characteristics as of April 30, 2025
	●	Next Dividend Announcement Expected June 10, 2025

Vero Beach, Fla., May 07, 2025 (GLOBE NEWSWIRE) -- Orchid Island Capital, Inc. (the “Company”) (NYSE: ORC) announced today that the Board of Directors of the Company declared a monthly cash dividend for the month of May 2025. The dividend of $0.12 per share will be paid June 27, 2025 to holders of record of the Company’s common stock on May 30, 2025, with an ex-dividend date of May 30, 2025. The Company plans on announcing its next common stock dividend on June 10, 2025.

The Company intends to make regular monthly cash distributions to its holders of common stock. In order to qualify as a real estate investment trust (“REIT”), the Company must distribute annually to its stockholders an amount at least equal to 90% of its REIT taxable income, determined without regard to the deduction for dividends paid and excluding any net capital gain. The Company will be subject to income tax on taxable income that is not distributed and to an excise tax to the extent that a certain percentage of its taxable income is not distributed by specified dates. The Company has not established a minimum distribution payment level and is not assured of its ability to make distributions to stockholders in the future.

As of May 7, 2025, the Company had 109,219,994 shares of common stock outstanding. As of April 30, 2025, the Company had 108,823,792 shares of common stock outstanding. As of March 31, 2025, the Company had 107,786,614 shares of common stock outstanding.

RMBS Portfolio Characteristics

Details of the RMBS portfolio as of April 30, 2025 are presented below. These figures are preliminary and subject to change. The information contained herein is an intra-quarter update created by the Company based upon information that the Company believes is accurate:

	●	RMBS Valuation Characteristics
	●	RMBS Assets by Agency
	●	Investment Company Act of 1940 (Whole Pool) Test Results
	●	Repurchase Agreement Exposure by Counterparty
	●	RMBS Risk Measures

About Orchid Island Capital, Inc.

Orchid Island Capital, Inc. is a specialty finance company that invests on a leveraged basis in Agency RMBS. Our investment strategy focuses on, and our portfolio consists of, two categories of Agency RMBS: (i) traditional pass-through Agency RMBS, such as mortgage pass-through certificates and collateralized mortgage obligations issued by Fannie Mae, Freddie Mac or Ginnie Mae, and (ii) structured Agency RMBS. The Company is managed by Bimini Advisors, LLC, a registered investment adviser with the Securities and Exchange Commission.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements include, but are not limited to, statements about the Company’s distributions. These forward-looking statements are based upon Orchid Island Capital, Inc.’s present expectations, but these statements are not guaranteed to occur. Investors should not place undue reliance upon forward-looking statements. For further discussion of the factors that could affect outcomes, please refer to the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

RMBS Valuation Characteristics
($ in thousands)
																										Realized
																							Realized			Feb 25 -
																							Apr-25			Apr-25
													Net								Weighted		CPR			CPR
													Weighted								Average		(1-Month)			(3-Month)			Modeled Interest
		Current			Fair			% of			Current		Average								Maturity		(Reported			(Reported			Rate Sensitivity (1)
Type		Face			Value			Portfolio			Price		Coupon			GWAC			Age		(Months)		in May)			in May)			(-50 BPS)				(+50 BPS)
Fixed Rate RMBS
15yr 5.0 TBA		$	100,000		$	100,238		1.62	%		100.24		5.00	%		5.85	%		9		166		n/a			n/a			$	1,220			$	(1,435	)
15yr Total			100,000			100,238		1.62	%		100.24		5.00	%		5.85	%		9		166		n/a			n/a				1,220				(1,435	)
30yr 3.0			868,857			766,169		12.38	%		88.18		3.00	%		3.48	%		50		302		6.0	%		6.0	%			22,624				(23,153	)
30yr 3.5			170,830			156,440		2.53	%		91.58		3.50	%		4.04	%		62		285		7.6	%		5.7	%			4,264				(4,360	)
30yr 4.0			162,336			152,389		2.46	%		93.87		4.00	%		4.70	%		48		307		7.0	%		4.3	%			3,833				(4,046	)
30yr 4.5			293,146			281,168		4.54	%		95.91		4.50	%		5.44	%		34		322		15.9	%		9.8	%			5,889				(6,476	)
30yr 5.0			430,517			423,705		6.85	%		98.42		5.00	%		5.92	%		29		325		4.2	%		6.0	%			8,345				(9,398	)
30yr 5.5			575,097			578,901		9.35	%		100.66		5.50	%		6.45	%		14		341		7.6	%		5.8	%			9,891				(11,763	)
30yr 6.0			2,063,362			2,110,887		34.11	%		102.30		6.00	%		6.96	%		10		345		8.0	%		8.0	%			24,905				(32,234	)
30yr 6.5			1,256,119			1,304,023		21.07	%		103.81		6.50	%		7.44	%		13		343		12.9	%		9.1	%			10,175				(14,243	)
30yr 7.0			284,983			299,139		4.83	%		104.97		7.00	%		7.95	%		18		334		28.1	%		22.4	%			2,170				(2,783	)
30yr Total			6,105,247			6,072,821		98.13	%		99.47		5.41	%		6.27	%		22		333		9.7	%		8.2	%			92,096				(108,456	)
Total Pass-Through MBS			6,205,247			6,173,059		99.75	%		99.48		5.40	%		6.27	%		22		330		9.7	%		8.2	%			93,316				(109,891	)
Structured MBS
IO 20yr 4.0			6,460			584		0.01	%		9.04		4.00	%		4.57	%		159		74		11.6	%		9.8	%			3				(3	)
IO 30yr 3.0			2,507			307		0.00	%		12.23		3.00	%		3.64	%		123		227		22.7	%		8.8	%			(1	)			-
IO 30yr 4.0			69,142			13,154		0.21	%		19.03		4.00	%		4.60	%		128		223		2.7	%		3.8	%			(271	)			195
IO 30yr 4.5			3,000			556		0.01	%		18.53		4.50	%		4.99	%		178		169		7.8	%		7.6	%			(6	)			3
IO 30yr 5.0			1,571			333		0.01	%		21.19		5.00	%		5.37	%		178		169		1.4	%		16.8	%			(5	)			3
IO Total			82,680			14,934		0.24	%		18.06		4.01	%		4.59	%		133		208		4.2	%		4.8	%			(280	)			198
IIO 30yr 4.0			20,837			322		0.01	%		1.54		0.00	%		4.40	%		91		257		7.8	%		3.0	%			114				(91	)
Total Structured RMBS			103,517			15,256		0.25	%		14.74		3.20	%		4.56	%		125		218		4.9	%		4.5	%			(166	)			107
Total Mortgage Assets		$	6,308,764		$	6,188,315		100.00	%				5.37	%		6.24	%		24		328		9.6	%		8.2	%		$	93,150			$	(109,784	)

					Hedge		Modeled Interest
		Notional			Period		Rate Sensitivity (1)
Hedge		Balance			End		(-50 BPS)				(+50 BPS)
3-Month SOFR Futures		$	(115,000	)	Aug-26		$	(1,150	)		$	1,150
5-Year Treasury Future(2)			(377,500	)	Jun-25			(7,967	)			7,789
10-Year Treasury Future(3)			(193,500	)	Jun-25			(6,199	)			6,138
10-Year Ultra Treasury Future(4)			(137,500	)	Jun-25			(6,170	)			5,909
Swaps			(3,435,300	)	Jan-31			(88,630	)			85,559
TBA			(200,000	)	May-25			(4,884	)			5,297
Hedge Total		$	(4,458,800	)			$	(115,000	)		$	111,842
Rate Shock Grand Total							$	(21,850	)		$	2,058

(1	)	Modeled results from Citigroup Global Markets Inc. Yield Book. Interest rate shocks assume instantaneous parallel shifts and horizon prices are calculated assuming constant SOFR option-adjusted spreads. These results are for illustrative purposes only and actual results may differ materially.
(2	)	Five-year Treasury futures contracts were valued at prices of $109.20 at April 30, 2025. The market value of the short position was $412.2 million.
(3	)	Ten-year Treasury futures contracts were valued at prices of $112.22 at April 30, 2025. The market value of the short position was $217.2 million.
(4	)	Ten-year Ultra Treasury futures contracts were valued at prices of $114.73 at April 30, 2025. The market value of the short position was $157.8 million.

RMBS Assets by Agency
($ in thousands)
						Percentage
		Fair				of
Asset Category		Value				Portfolio
As of April 30, 2025
Fannie Mae		$	3,783,477				61.1	%
Freddie Mac			2,404,838				38.9	%
Total Mortgage Assets		$	6,188,315				100.0	%

Investment Company Act of 1940 Whole Pool Test
($ in thousands)
						Percentage
		Fair				of
Asset Category		Value				Portfolio
As of April 30, 2025
Non-Whole Pool Assets		$	299,950				4.8	%
Whole Pool Assets			5,888,365				95.2	%
Total Mortgage Assets		$	6,188,315				100.0	%

Borrowings By Counterparty
($ in thousands)
									Weighted			Weighted
						% of			Average			Average
		Total				Total			Repo			Maturity		Longest
As of April 30, 2025		Borrowings				Debt			Rate			in Days		Maturity
J.P. Morgan Securities LLC		$	358,603			6.2	%		4.46	%		15		5/21/2025
Merrill Lynch, Pierce, Fenner & Smith			332,720			5.7	%		4.50	%		25		6/13/2025
Wells Fargo Bank, N.A.			313,708			5.4	%		4.46	%		59		7/16/2025
Citigroup Global Markets Inc			313,483			5.4	%		4.50	%		27		5/28/2025
ABN AMRO Bank N.V.			291,937			5.0	%		4.48	%		48		6/23/2025
StoneX Financial Inc.			290,202			5.0	%		4.45	%		21		5/28/2025
Clear Street LLC			287,102			4.9	%		4.47	%		19		5/28/2025
Daiwa Securities America Inc.			276,183			4.7	%		4.49	%		22		5/23/2025
South Street Securities, LLC			267,923			4.6	%		4.46	%		58		7/29/2025
Goldman, Sachs & Co			265,935			4.6	%		4.50	%		28		5/28/2025
MUFG Securities Canada, Ltd.			260,466			4.5	%		4.47	%		14		5/22/2025
ING Financial Markets LLC			257,355			4.4	%		4.48	%		9		5/13/2025
DV Securities, LLC Repo			253,937			4.4	%		4.45	%		25		5/28/2025
RBC Capital Markets, LLC			251,948			4.3	%		4.46	%		52		6/23/2025
ASL Capital Markets Inc.			249,316			4.3	%		4.45	%		21		6/13/2025
Marex Capital Markets Inc.			242,091			4.2	%		4.45	%		27		5/29/2025
Mirae Asset Securities (USA) Inc.			241,484			4.2	%		4.52	%		74		9/15/2025
Cantor Fitzgerald & Co			224,831			3.9	%		4.46	%		12		5/22/2025
Bank of Montreal			200,551			3.4	%		4.50	%		22		5/23/2025
Mitsubishi UFJ Securities (USA), Inc.			200,503			3.4	%		4.46	%		42		6/12/2025
The Bank of Nova Scotia			140,934			2.4	%		4.50	%		21		5/21/2025
Banco Santander SA			139,659			2.4	%		4.50	%		16		5/16/2025
Nomura Securities International, Inc.			120,432			2.1	%		4.48	%		34		6/20/2025
Lucid Prime Fund, LLC			35,296			0.6	%		4.50	%		15		5/15/2025
Total Borrowings		$	5,816,599			100.0	%		4.47	%		30		9/15/2025

Contact:

Orchid Island Capital, Inc.
Robert E. Cauley
3305 Flamingo Drive, Vero Beach, Florida 32963
Telephone: (772) 231-1400

FAQ

What is ORC's dividend payment for May 2025?

Orchid Island Capital (ORC) declared a monthly dividend of $0.12 per share for May 2025, payable on June 27, 2025, to stockholders of record on May 30, 2025.

What is the composition of ORC's RMBS portfolio as of April 2025?

ORC's portfolio consists of $6.19 billion in mortgage assets, with 61.1% in Fannie Mae and 38.9% in Freddie Mac securities. The portfolio is primarily composed of 30-year fixed-rate RMBS (98.13%).

How does ORC finance its RMBS portfolio?

ORC finances its portfolio through $5.82 billion in borrowings from 24 different counterparties at a weighted average repo rate of 4.47% with an average maturity of 30 days.

What is ORC's hedging strategy for interest rate risk?

ORC uses a combination of SOFR futures, Treasury futures, swaps, and TBA positions totaling $4.46 billion in notional value to hedge against interest rate movements.