Orchid Island Capital Announces Third Quarter 2026 Results

Q: What were Orchid Island Capital's third-quarter 2026 earnings?

Orchid reported a net loss of $178.9 million, or $0.90 per common share, for the quarter ended September 30, 2026. That compared with net income of $72.1 million for the same period in 2025. Net interest income was $59.1 million.

Q: What were ORC's book value and total return in third-quarter 2026?

Orchid's book value was $6.02 per common share at September 30, 2026, and quarterly total return was negative 12.47%. The return combined a $0.30 per-share dividend with a $1.20 per-share book-value decline, divided by beginning book value per share.

Q: How did Orchid Island Capital limit leverage expansion in third-quarter 2026?

Orchid used less than $400 million in asset sales, retained monthly principal pay-downs and increased its hedges to limit leverage expansion. The company said its objective was to preserve book-value recovery potential if spreads recovered or rates decreased and to sustain the dividend.

Book value declined despite dividend payments, while Orchid increased hedging and maintained liquidity of $515.7 million.

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Rhea-AI Summary

Orchid Island Capital (ORC) reported a third-quarter 2026 net loss of $178.9 million as mortgage-security and derivative losses weighed on results. The loss was $0.90 per common share, compared with net income of $72.1 million a year earlier. Net interest income was $59.1 million, while realized and unrealized losses on mortgage-backed securities and derivatives, including swap interest income, totaled $231.7 million.

Book value fell $1.20 per share to $6.02 at September 30. Dividends declared and paid were $0.30 per share, and total return was negative 12.47%. Liquidity was $515.7 million, approximately 44% of equity. Outstanding repurchase financing was approximately $10.4 billion. Orchid increased hedge coverage to near 100% of funding and extended hedge duration. It repurchased approximately 4.95 million shares during the quarter and approximately 1.67 million in October to date.

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1 major · 12 points

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Positive

Moderate pointNet interest income totaled $59.1 million, or $0.30 per common share, in third-quarter 2026.
Moderate pointLiquidity of $515.7 million represented approximately 44% of stockholders' equity at September 30, 2026.
Moderate pointShare repurchases totaled approximately 4.95 million in third-quarter 2026 and approximately 1.67 million in October to date.
Moderate pointAverage Agency mortgage-security yield rose to 5.91% in third-quarter 2026 from 5.74% in second-quarter 2026.
Minor pointBorrowing capacity exceeded outstanding repurchase balances across 33 active lenders at September 30, 2026.
Minor pointHedge coverage increased to near 100% of funding, with hedge duration extended during third-quarter 2026.

Negative

Major pointNet loss of $178.9 million in third-quarter 2026 compared with $72.1 million net income a year earlier.
Moderate pointBook value declined $1.20 per common share to $6.02 at September 30, 2026.
Moderate pointRepurchase obligations of approximately $10.4 billion carried a 3.99% weighted average borrowing rate at September 30, 2026.
Moderate pointAdjusted leverage was 8.8 to 1; economic leverage was 8.6 to 1 at September 30, 2026.
Moderate pointPortfolio size decreased 6.7% during third-quarter 2026.
Moderate point. Forward-looking: it has not happened yet and may not happen.Interest-rate sensitivity increased: a 1.0% rate rise implied a 4.327% portfolio-value decline versus 2.513% at December 31, 2025.

6 minor points

Minor pointMortgage-security and derivative losses, including swap interest income, totaled $231.7 million in third-quarter 2026.
Minor pointTotal return was negative 12.47% in third-quarter 2026, including dividends and the book-value decline.
Minor pointQuarterly borrowing costs rose to 3.92% in third-quarter 2026 from 3.80% in second-quarter 2026.
Minor pointInterest income declined approximately $0.1 million from second-quarter 2026.
Minor pointTotal expenses were $6.3 million, or $0.03 per common share, in third-quarter 2026.
Minor pointFunding-hedge costs increased modestly as hedge balances and duration expanded during third-quarter 2026.

News Explained

At September 30, 2026, the reported duration measure indicated a 4.327% RMBS value decline for a 1% rate rise, versus 2.513% at December 31, 2025.

In its completed third-quarter report, Orchid Island Capital disclosed an adjusted leverage ratio of 8.8 to 1 at September 30, 2026, defined as repurchase-agreement liabilities divided by stockholders’ equity.

Its effective-duration measure was 4.327 at September 30, 2026, versus 2.513 at December 31, 2025; the company says these indicate expected 4.327% and 2.513% decreases, respectively, in RMBS portfolio value for a 1% increase in interest rates.

Key Figures

Net loss: $178.9 million Net loss per common share: ($0.90) per common share Net interest income: $59.1 million +5 more

Net loss: $178.9 million; Third quarter 2026
Net loss per common share: ($0.90) per common share; Third quarter 2026
Net interest income: $59.1 million; Third quarter 2026
Net realized and unrealized losses: $231.7 million; RMBS and derivative instruments, third quarter 2026
Dividend per common share: $0.30; Third quarter 2026; declared and paid
Book value per common share: $6.02; As of September 30, 2026
Total return: (12.47)%; Third quarter 2026
Liquidity: $515.7 million; Cash, cash equivalents and unpledged securities as of September 30, 2026

Previous Earnings Reports

1 past event · Latest: Jul 23

Same Type 1 event

Jul 23
earnings report

24h Move

-1.1%

Reported $89.2 million net income and a $0.14 per-share book-value increase for Q2.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

reit, rmbs, cpr, gaap, +1 more

5 terms

reit financial

"a real estate investment trust ("REIT")"

A real estate investment trust (REIT) is a company that owns, operates, or finances income-producing real estate, like shopping centers, apartments, or office buildings. For investors, REITs offer a way to invest in real estate without having to buy property directly, often providing regular income through dividends. They function like a mutual fund for real estate, making it easier for people to add property investments to their portfolio.

rmbs financial

"losses on RMBS and derivative instruments"

Residential mortgage-backed securities (RMBS) are investments made by pooling many home loans and selling slices of the resulting stream of mortgage payments to investors. They matter because they convert homeowners’ monthly payments into tradable income: the cash you receive and the price you pay depend on borrowers’ ability to pay, interest rates and housing market health—think of buying a share in a neighborhood’s mortgage cash flow, with corresponding income and risk.

cpr financial

"3-month constant prepayment rate (“CPR”)"

Cardiopulmonary resuscitation (CPR) is an emergency procedure that combines chest compressions and rescue breaths to keep blood and oxygen flowing when a person’s heart or breathing has stopped. For investors, mentions of CPR in corporate announcements typically signal product, training or regulatory activity related to life‑saving equipment and services, which can affect a company’s market prospects much like a safety recall or a new, proven product can influence revenues and reputation.

gaap financial

"under U.S. generally accepted accounting principles (“GAAP”)"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

tba financial

"to-be-announced ("TBA") securities contracts"

tba stands for "to be announced" and is used when specific details—such as a date, amount, participant, or location—have not yet been finalized or released. For investors it flags incomplete information that could affect timing, valuation, or risk; think of it as a calendar placeholder that tells you to watch for an update before making a decision based on the missing detail.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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10/22/2026 - 04:05 PM EDT

VERO BEACH, Fla., Oct. 22, 2026 (GLOBE NEWSWIRE) -- Orchid Island Capital, Inc. (NYSE: ORC) ("Orchid” or the "Company"), a real estate investment trust ("REIT"), today announced results of operations for the three month period ended September 30, 2026.

Third Quarter 2026 Results

Net loss of $178.9 million, or $0.90 per common share, which consists of:
Net interest income of $59.1 million, or $0.30 per common share
Total expenses of $6.3 million, or $0.03 per common share
Net realized and unrealized losses of $231.7 million, or $1.17 per common share, on RMBS and derivative instruments, including net interest income on interest rate swaps
Third quarter dividends declared and paid of $0.30 per common share
Book value per common share of $6.02 at September 30, 2026
Total return of (12.47)%, comprised of $0.30 dividend per common share and $1.20 decrease in book value per common share, divided by beginning book value per common share

Other Financial Highlights

In the midst of very turbulent market conditions, Orchid maintained a strong liquidity position of $515.7 million in cash and cash equivalents and unpledged securities, or approximately 44% of stockholders' equity as of September 30, 2026
Borrowing capacity in excess of September 30, 2026 outstanding repurchase agreement balances of $10.4 billion, spread across 33 active lenders
Repurchased approximately 4.95 million shares during the third quarter and approximately 1.67 million shares to date in October
Increased hedge coverage and extended hedge duration as market conditions deteriorated during the quarter and leverage increased
Company to discuss results on Friday, October 23, 2026, at 10:00 AM ET
Supplemental materials to be discussed on the call can be downloaded from the investor relations section of the Company’s website at https://ir.orchidislandcapital.com

Management Commentary

Commenting on the third quarter results, Robert E. Cauley, Chairman and Chief Executive Officer, said, “The third quarter of 2026 presented very challenging market conditions as we witnessed a significant increase in interest rates across the globe. Benchmark U.S. treasury yields reached levels last seen in the early 2000s. The Agency RMBS market was particularly impacted and there was widespread deleveraging and forced selling, with implied interest rate volatility spiking higher as well. Going into the sell-off Orchid had hedge coverage at over 90% of our funding levels and a high coupon bias which proved beneficial as higher coupons generated better absolute returns – or less negative – during the period. To counteract the leverage ratio expansion as our book value declined, we opted to focus on our hedges by both increasing both the notional balances – to near 100% coverage – and duration of our hedges versus solely relying on asset sales. Secondly, we used a combination of modest asset sales – less than $400 million – and retaining our monthly pay-downs to limit the leverage expansion. We took advantage of the depressed stock price to repurchase approximately 6.6 million shares to date since the end of the second quarter and did so strategically when the stock price was trading at a significant discount to our book value. Throughout the quarter we were able to maintain ample liquidity.

“Our objective was to maximize our book value recovery potential if spreads recovered and/or rates decreased and to sustain the dividend. To the extent our funding levels increase as a result of Fed interest rate hikes, our higher coupon, low premium specified pools should provide enhanced income potential in a slow prepay environment - even more so with the majority of the portfolio now priced below par, allowing for discount accretion. Further buttressing our earnings potential is our nearly 100% hedge coverage. While the cost of our funding hedges has increased modestly with the expansion of the notional balance and duration of the hedge book, the asset yields will be higher across the entire portfolio, offset to some extent by the slight 6.7% reduction in the portfolio size we experienced. To the extent the market has fully stabilized now, we are quite comfortable with our positioning.”

Details of Third Quarter 2026 Results of Operations

The Company reported a net loss of $178.9 million for the three month period ended September 30, 2026, compared with net income of $72.1 million for the three month period ended September 30, 2025. Interest income on the portfolio in the third quarter was down approximately $0.1 million from the second quarter of 2026. The yield on our average Agency RMBS increased slightly from 5.74% in the second quarter of 2026 to 5.91% for the third quarter of 2026, and our repurchase agreement borrowing costs increased from 3.80% for the second quarter of 2026 to 3.92% for the third quarter of 2026. Book value decreased by $1.20 per share in the third quarter of 2026. The decrease in book value reflects our net loss of $0.90 per share and the dividend distribution of $0.30 per share. The Company recorded net realized and unrealized losses of $231.7 million on Agency RMBS assets and derivative instruments, including net interest income on interest rate swaps.

Prepayments

For the quarter ended September 30, 2026, Orchid received $306.0 million in scheduled and unscheduled principal repayments and prepayments, which equated to a 3-month constant prepayment rate (“CPR”) of approximately 8.4%. Prepayment rates on the two RMBS sub-portfolios were as follows (in CPR):

	Total
Three Months Ended	Portfolio (%)
September 30, 2026	8.4
June 30, 2026	10.9
March 31, 2026	14.7
December 31, 2025	15.7
September 30, 2025	10.1
June 30, 2025	10.1
March 31, 2025	7.8

Portfolio

The following tables summarize certain characteristics of Orchid’s RMBS portfolio as of September 30, 2026 and December 31, 2025:

($ in thousands)
							Weighted
			Percentage				Average
			of		Weighted		Maturity
	Fair		Entire		Average		in	Longest
Asset Category	Value		Portfolio		Coupon		Months	Maturity
September 30, 2026
Fixed Rate RMBS	$	10,655,685	99.9	%	5.53	%	334	1-Jun-56
Other		11,383	0.1	%	3.41	%	201	25-Jul-48
Total Mortgage Assets	$	10,667,068	100.0	%	5.51	%	333	1-Jun-56
December 31, 2025
Fixed Rate RMBS	$	10,615,570	99.9	%	5.67	%	341	1-Jan-56
Other		13,088	0.1	%	3.25	%	210	25-Jul-48
Total Mortgage Assets	$	10,628,658	100.0	%	5.64	%	340	1-Jan-56

($ in thousands)
	September 30, 2026				December 31, 2025
			Percentage of				Percentage of
Agency	Fair Value		Entire Portfolio		Fair Value		Entire Portfolio
Fannie Mae	$	5,557,220	52.1	%	$	5,675,461	53.4	%
Freddie Mac		5,109,848	47.9	%		4,953,197	46.6	%
Total Portfolio	$	10,667,068	100.0	%	$	10,628,658	100.0	%

As of September 30, 2026, the Company's portfolio had an effective duration of 4.327, indicating that an interest rate increase of 1.0% would be expected to cause a 4.327% decrease in the value of the RMBS in the Company’s investment portfolio. This compares to an effective duration of 2.513 as of December 31, 2025, which indicated that an interest rate increase of 1.0% would be expected to cause a 2.513% decrease in the value of the RMBS in the Company’s investment portfolio.

Financing, Leverage and Liquidity

As of September 30, 2026, the Company had outstanding repurchase obligations of approximately $10.4 billion with a net weighted average borrowing rate of 3.99%. These agreements were collateralized by RMBS with a fair value, including accrued interest, of approximately $10.7 billion and cash pledged to counterparties of approximately $130.0 million. The Company’s adjusted leverage ratio, defined as the balance of repurchase agreement liabilities divided by stockholders' equity, at September 30, 2026 was 8.8 to 1. The Company’s economic leverage ratio, defined as the total liabilities, adjusted for net TBA positions, divided by stockholders' equity, at September 30, 2026 was 8.6 to 1. At September 30, 2026, the Company’s liquidity was approximately $515.7 million consisting of cash and cash equivalents and unpledged securities. Below is a list of our outstanding borrowings under repurchase obligations at September 30, 2026.

($ in thousands)
					Weighted		Weighted
	Total				Average		Average
	Outstanding		% of		Borrowing		Maturity
Counterparty	Balances		Total		Rate		in Days
Citigroup Global Markets Inc	$	466,497	4.49	%	4.00	%	20
Hidden Road Partners Civ US LLC		455,496	4.40	%	4.03	%	47
ABN AMRO Bank N.V.		447,423	4.32	%	3.98	%	19
StoneX Financial Inc.		438,071	4.23	%	4.00	%	23
Marex Capital Markets Inc.		436,606	4.21	%	4.00	%	29
ASL Capital Markets Inc.		433,149	4.18	%	3.99	%	20
South Street Securities, LLC		428,723	4.14	%	4.10	%	181
The Bank of Nova Scotia		423,924	4.09	%	3.99	%	16
J.P. Morgan Securities LLC		423,315	4.09	%	4.01	%	19
Banco Santander SA		402,148	3.88	%	3.85	%	13
Cantor Fitzgerald & Co		400,692	3.87	%	3.99	%	16
DV Securities, LLC Repo		396,961	3.83	%	3.92	%	10
Clear Street LLC		383,783	3.70	%	3.99	%	19
Daiwa Securities America Inc.		381,829	3.68	%	4.00	%	21
Wells Fargo Securities, LLC		371,748	3.59	%	3.99	%	1
Goldman, Sachs & Co		370,088	3.57	%	4.00	%	1
Brean Capital, LLC		346,653	3.35	%	3.99	%	20
ING Financial Markets LLC		340,561	3.29	%	3.97	%	14
RBC Capital Markets, LLC		328,157	3.17	%	4.02	%	16
TD Securities (USA) LLC		313,342	3.02	%	3.97	%	15
Mirae Asset Securities (USA) Inc.		278,527	2.69	%	3.99	%	21
Morgan Stanley & Co. LLC		277,755	2.68	%	4.00	%	29
MUFG Securities Canada, Ltd.		246,298	2.38	%	3.99	%	16
Mitsubishi UFJ Securities (USA), Inc.		226,333	2.18	%	4.00	%	19
Mesirow Financial, Inc.		221,428	2.14	%	3.99	%	18
Merrill Lynch, Pierce, Fenner & Smith		201,307	1.94	%	4.01	%	28
Nomura Securities International, Inc.		200,018	1.93	%	3.97	%	14
Natixis, New York Branch		176,921	1.71	%	4.01	%	16
Mizuho Securities USA LLC		171,766	1.66	%	3.99	%	16
Bank of Montreal		170,860	1.65	%	4.02	%	26
BNP Paribas Securities Corp.		150,098	1.45	%	4.01	%	26
Lucid Prime Fund, LLC		29,110	0.28	%	3.99	%	15
Canyon Partners, LLC		22,130	0.21	%	3.93	%	14
Total / Weighted Average	$	10,361,717	100.00	%	3.99	%	26

Hedging

In connection with its interest rate risk management strategy, the Company economically hedges a portion of the cost of its repurchase agreement funding against a rise in interest rates by entering into derivative financial instrument contracts. The Company has not elected hedging treatment under U.S. generally accepted accounting principles (“GAAP”) in order to align the accounting treatment of its derivative instruments with the treatment of its portfolio assets under the fair value option election. As such, all gains or losses on these instruments are reflected in earnings for all periods presented. At September 30, 2026, such instruments were comprised of U.S. Treasury note (“T-Note”) and Secured Overnight Financing Rate ("SOFR") futures contracts, interest rate swap agreements and to-be-announced ("TBA") securities contracts.

The table below presents information related to the Company’s T-Note and SOFR futures contracts at September 30, 2026.

($ in thousands)
	Average		Weighted		Weighted
	Contract		Average		Average
	Notional		Entry		Effective		Open
Expiration Year	Amount		Rate		Rate		Equity⁽¹⁾
Treasury Note Futures Contracts (Short Positions)
December 2026 10-year T-Note futures (Dec 2026 - Dec 2036 Hedge Period)⁽²⁾	$	858,600	4.90	%	5.24	%	$	17,763
December 2026 10-year Ultra futures (Dec 2026 - Dec 2036 Hedge Period)⁽³⁾		560,000	4.95	%	5.33	%		16,963
December 2026 30-year Ultra futures (Dec 2026 - Dec 2056 Hedge Period)⁽⁴⁾		150,000	5.69	%	5.75	%		1,313
SOFR Futures Contracts (Short Positions)
December 2026 3-Month SOFR futures (Sep 2026 - Dec 2026 Hedge Period)	$	97,500	3.27	%	3.97	%	$	681
March 2027 3-Month SOFR futures (Dec 2026 - Mar 2027 Hedge Period)		97,500	3.22	%	4.30	%		1,056
June 2027 3-Month SOFR futures (Mar 2027 - Jun 2027 Hedge Period)		97,500	3.21	%	4.61	%		1,368
ERIS SOFR Swap Futures Contracts (Short Positions)⁽⁵⁾
December 2026 5-Year Term, 3.75% fixed rate, (Dec 2026 - Dec 2031 Hedge Period)	$	10,000	4.52	%	4.86	%	$	145

(1)	Open equity represents the cumulative gains (losses) recorded on open futures positions from inception.
(2)	10-Year T-Note futures contracts were valued at a price of $104.20 at September 30, 2026. The aggregate contract values of the short positions were $894.7 million at September 30, 2026.
(3)	10-Year Ultra futures contracts were valued at a price of $105.00 at September 30, 2026. The aggregate contract values of the short positions were $588.0 million at September 30, 2026.
(4)	30-Year T-Note Ultra futures contracts were valued at a price $103.59 at September 30, 2026. The contract value of the short position was $155.4 million at September 30, 2026.
(5)	ERIS swap futures are exchange traded futures that replicate the cash flows of an underlying swap position.

The table below presents information related to the Company’s interest rate swap positions at September 30, 2026.

($ in thousands)
			Average
			Fixed		Average		Average
	Notional		Pay		Receive		Maturity
	Amount		Rate		Rate		(Years)
Expiration > 1 to ≤ 5 years	$	5,292,800	3.47	%	3.90	%	2.9
Expiration > 5 years		2,571,400	3.97	%	3.90	%	8.3
	$	7,864,200	3.63	%	3.90	%	4.7

The following table summarizes our contracts to sell TBA securities as of September 30, 2026.

($ in thousands)
	Notional
	Amount									Net
	Long			Cost			Market			Carrying
	(Short)⁽¹⁾			Basis⁽²⁾			Value⁽³⁾			Value⁽⁴⁾
September 30, 2026
*15-Year TBA securities:*
5.5%		100,000			99,703			98,523			(1,180	)
*30-Year TBA securities:*
5.0%		(345,000	)		(331,555	)		(319,152	)		12,403
6.0%		(70,000	)		(69,716	)		(68,453	)		1,263
	$	(315,000	)	$	(301,568	)	$	(289,082	)	$	12,486

(1)	Notional amount represents the par value (or principal balance) of the underlying Agency RMBS.
(2)	Cost basis represents the forward price to be paid (received) for the underlying Agency RMBS.
(3)	Market value represents the current market value of the TBA securities (or of the underlying Agency RMBS) as of period-end.
(4)	Net carrying value represents the difference between the market value and the cost basis of the TBA securities as of period-end and is reported in derivative assets (liabilities) at fair value in our balance sheets.

Dividends

In addition to other requirements that must be satisfied to qualify as a REIT, we must pay annual dividends to our stockholders of at least 90% of our REIT taxable income, determined without regard to the deduction for dividends paid and excluding any net capital gains. We intend to pay regular monthly dividends to our stockholders and have declared the following dividends since our February 2013 IPO.

(in thousands, except per share data)
Year	Per Share Amount		Total
2013	$	6.975	$	4,662
2014		10.800		22,643
2015		9.600		38,748
2016		8.400		41,388
2017		8.400		70,717
2018		5.350		55,814
2019		4.800		54,421
2020		3.950		53,570
2021		3.900		97,601
2022		2.475		87,906
2023		1.800		81,127
2024		1.440		96,309
2025		1.440		190,930
2026 - YTD⁽¹⁾		1.060		208,033
Totals	$	70.390	$	1,103,869

(1)	On October 14, 2026, the Company declared a dividend of $0.10 per share to be paid on November 27, 2026. The effect of this dividend is included in the table above but is not reflected in the Company’s financial statements as of September 30, 2026.

Book Value Per Share

The Company's book value per share at September 30, 2026 was $6.02. The Company computes book value per share by dividing total stockholders' equity by the total number of shares outstanding of the Company's common stock. At September 30, 2026, the Company's stockholders' equity was $1,171.8 million with 194,661,864 shares of common stock outstanding.

Stock Offerings

On June 11, 2024, we entered into an equity distribution agreement (the “June 2024 Equity Distribution Agreement”) with three sales agents pursuant to which we could offer and sell, from time to time, up to an aggregate amount of $250,000,000 of gross proceeds from the sales of shares of our common stock in transactions that were deemed to be “at the market” offerings and privately negotiated transactions. We issued a total of 30,513,253 shares under the June 2024 Equity Distribution Agreement for aggregate gross proceeds of approximately $250.0 million and net proceeds of approximately $245.8 million, after commissions and fees, prior to its termination in February 2025.

On February 24, 2025, we entered into an equity distribution agreement (the “February 2025 Equity Distribution Agreement”) with four sales agents pursuant to which we could offer and sell, from time to time, up to an aggregate amount of $350,000,000 of gross proceeds from the sales of shares of our common stock in transactions that were deemed to be “at the market” offerings and privately negotiated transactions. On July 28, 2025, the February 2025 Equity Distribution Agreement was amended to increase the aggregate amount of gross proceeds from the sales of shares that may be offered by $150,000,000 to a total of $500,000,000. We issued a total of 59,492,504 shares under the February 2025 Equity Distribution Agreement for aggregate gross proceeds of approximately $445.1 million and net proceeds of approximately $438.0 million, after commissions and fees, prior to its termination in October 2025.

On October 27, 2025, we entered into an equity distribution agreement (the “October 2025 Equity Distribution Agreement”) with four sales agents pursuant to which we may offer and sell, from time to time, up to an aggregate amount of $500,000,000 of gross proceeds from the sales of shares of our common stock in transactions that are deemed to be “at the market” offerings and privately negotiated transactions. From inception through September 30, 2026, we issued a total of 48,824,644 shares under the October 2025 Equity Distribution Agreement for aggregate gross proceeds of approximately $360.9 million, and net proceeds of approximately $355.2 million, after commissions and fees. For the nine months ended September 30, 2026, we issued a total of 18,558,681 shares under the October 2025 Equity Distribution Agreement for aggregate gross proceeds of approximately $137.7 million, and net proceeds of approximately $135.5 million, after commissions and fees.

Stock Repurchase Program

On July 29, 2015, the Company’s Board of Directors authorized the repurchase of up to 400,000 shares of our common stock. The timing, manner, price and amount of any repurchases is determined by the Company in its discretion and is subject to economic and market conditions, stock price, applicable legal requirements and other factors. The authorization does not obligate the Company to acquire any particular amount of common stock and the program may be suspended or discontinued at the Company’s discretion without prior notice. On February 8, 2018, the Board of Directors approved an increase in the stock repurchase program for up to an additional 904,564 shares of the Company’s common stock. Coupled with the 156,751 shares remaining from the original 400,000 share authorization, the increased authorization brought the total authorization to 1,061,316 shares, representing 10% of the Company’s then outstanding share count. On December 9, 2021, the Board of Directors approved an increase in the number of shares of the Company’s common stock available in the stock repurchase program for up to an additional 3,372,399 shares, bringing the remaining authorization under the stock repurchase program to 3,539,861 shares, representing approximately 10% of the Company’s then outstanding shares of common stock. On October 12, 2022, the Board of Directors approved an increase in the number of shares of the Company’s common stock available in the stock repurchase program for up to an additional 4,300,000 shares, bringing the remaining authorization under the stock repurchase program to 6,183,601 shares, representing approximately 18% of the Company’s then outstanding shares of common stock. On June 22, 2026, the Board of Directors approved an increase in the number of shares of the Company’s common stock available in the stock repurchase program for up to an additional 25,000,000 shares, bringing the remaining authorization under the stock repurchase program to 26,612,580 shares, representing approximately 13.3% of the Company’s currently outstanding shares of common stock. This stock repurchase program has no termination date.

From the inception of the stock repurchase program through September 30, 2026, the Company repurchased a total of 12,310,506 shares at an aggregate cost of approximately $123.3 million, including commissions and fees, for a weighted average price of $10.02 per share. During the nine months ended September 30, 2026, the Company repurchased a total of 6,052,680 shares at an aggregate cost of approximately $38.5 million including commissions and fees, for a weighted average price of $6.36 per share. During the three months ended September 30, 2026, the Company repurchased a total of 4,946,123 shares at an aggregate cost of approximately $31.2 million including commissions and fees, for a weighted average price of $6.30 per share. Subsequent to September 30, 2026, the Company repurchased a total of 1,669,704 shares at an aggregate cost of approximately $8.4 million including commissions and fees, for a weighted average price of $5.05 per share. The remaining authorization under the stock repurchase program as of October 22, 2026 was 19,996,753 shares.

Earnings Conference Call Details

An earnings conference call and live audio webcast will be hosted Friday, October 23, 2026, at 10:00 AM ET. Participants can register and receive dial-in information at https://register-conf.media-server.com/register/BIfedea08824724a5a9237676385ec8a2e. A live audio webcast of the conference call can be accessed at https://edge.media-server.com/mmc/p/j9wajtqm or via the investor relations section of the Company's website at https://ir.orchidislandcapital.com. An audio archive of the webcast will be available for 30 days after the call.

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 CMOs issued by the GSEs, and (ii) structured Agency RMBS, such as IOs, IIOs and principal only securities, among other types of structured Agency RMBS. Orchid is managed by Bimini Advisors, LLC, a registered investment adviser with the Securities and Exchange Commission.

Forward Looking Statements

Statements herein relating to matters that are not historical facts, including, but not limited to statements regarding interest rates, inflation, liquidity, funding levels and spreads, prepayment speeds, portfolio composition, positioning and repositioning, hedging levels, leverage ratio, dividends, book value, investment and return opportunities, the supply and demand for Agency RMBS and the performance of the Agency RMBS sector generally, the effect of actual or expected actions of the U.S. government, including the Fed, market expectations, future opportunities and prospects of the Company, the stock repurchase program, and general economic conditions, are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The reader is cautioned that such forward-looking statements are based on information available at the time and on management's good faith belief with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in such forward-looking statements. Important factors that could cause such differences are described in Orchid Island Capital, Inc.'s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Orchid Island Capital, Inc. assumes no obligation to update forward-looking statements to reflect subsequent results, changes in assumptions or changes in other factors affecting forward-looking statements.

Summarized Financial Statements

The following is a summarized presentation of the unaudited balance sheets as of September 30, 2026, and December 31, 2025, and the unaudited quarterly statements of operations for the nine and three months ended September 30, 2026 and 2025. Amounts presented are subject to change.

ORCHID ISLAND CAPITAL, INC.

BALANCE SHEETS

($ in thousands, except per share data)

(Unaudited - Amounts Subject to Change)

	September 30, 2026		December 31, 2025
ASSETS:
Mortgage-backed securities, at fair value	$	10,667,068	$	10,628,658
U.S. Treasury securities, available-for-sale		207,861		135,133
Cash, cash equivalents and restricted cash		613,968		724,561
Accrued interest receivable		53,076		49,127
Derivative assets, at fair value		20,703		9,253
Reverse repurchase agreements		460,471		128,613
Receivable for investment securities and TBA transactions		-		-
Other assets		860		648
Total Assets	$	12,024,007	$	11,675,993

LIABILITIES AND STOCKHOLDERS' EQUITY
Repurchase agreements	$	10,361,717	$	10,115,466
Payable for investment securities and TBA transactions		-		1,519
Dividends payable		19,491		21,865
Derivative liabilities, at fair value		1,180		1,846
Accrued interest payable		19,491		31,397
Due to affiliates		1,667		1,661
Obligation to return securities borrowed under reverse repurchase agreements, at fair value		435,692		128,724
Other liabilities		12,933		1,567
Total Liabilities		10,852,171		10,304,045
Total Stockholders' Equity		1,171,836		1,371,948
Total Liabilities and Stockholders' Equity	$	12,024,007	$	11,675,993
Common shares outstanding		194,661,864		181,985,900
Book value per share	$	6.02	$	7.54

ORCHID ISLAND CAPITAL, INC.

STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

($ in thousands, except per share data)

(Unaudited - Amounts Subject to Change)

	Nine Months Ended September 30,						Three Months Ended September 30,
	2026			2025			2026			2025
Interest income	$	486,145		$	281,813		$	164,120		$	108,434
Interest expense		(309,976	)		(212,027	)		(104,986	)		(81,515	)
Net interest income		176,169			69,786			59,134			26,919
Losses (gains) on RMBS and derivative contracts		(265,357	)		499			(231,719	)		50,600
Net portfolio (loss) income		(89,188	)		70,285			(172,585	)		77,519
Expenses		20,495			14,663			6,335			5,441
Net (loss) income	$	(109,683	)	$	55,622		$	(178,920	)	$	72,078
Other comprehensive income		(836	)		280			(280	)		94
Comprehensive net	$	(110,519	)	$	55,902		$	(179,200	)	$	72,172

Basic and diluted net (loss) income per share	$	(0.56	)	$	0.48		$	(0.90	)	$	0.53
Weighted Average Shares Outstanding		195,970,255			115,574,062			198,454,916			136,368,958
Dividends Declared Per Common Share:	$	0.96		$	1.08		$	0.30		$	0.36

	Three Months Ended September 30,
Key Balance Sheet Metrics	2026			2025
Average RMBS⁽¹⁾	$	11,103,616		$	7,674,720
Average repurchase agreements⁽¹⁾		10,724,316			7,331,428
Average stockholders' equity⁽¹⁾		1,306,547			999,025
Adjusted leverage ratio⁽²⁾	8.8:1			7.4:1
Economic leverage ratio⁽³⁾	8.6:1			7.4:1

Key Performance Metrics
Average yield on RMBS⁽⁴⁾		5.91	%		5.65	%
Average cost of funds⁽⁴⁾		3.92	%		4.45	%
Average economic cost of funds⁽⁵⁾		3.43	%		3.25	%
Average interest rate spread⁽⁶⁾		1.99	%		1.20	%
Average economic interest rate spread⁽⁷⁾		2.48	%		2.40	%

(1)	Average RMBS, borrowings and stockholders’ equity balances are calculated using two data points, the beginning and ending balances.
(2)	The adjusted leverage ratio is calculated by dividing ending repurchase agreement liabilities by ending stockholders’ equity.
(3)	The economic leverage ratio is calculated by dividing ending total liabilities, adjusted for net notional TBA positions and securities borrowed, by ending stockholders' equity.
(4)	Portfolio yields and costs of funds are calculated based on the average balances of the underlying investment portfolio/borrowings balances and are annualized for the quarterly periods presented.
(5)	Represents the interest cost of our borrowings and the effect of derivative agreements attributed to the period related to hedging activities, divided by average borrowings.
(6)	Average interest rate spread is calculated by subtracting average cost of funds from average yield on RMBS.
(7)	Average economic interest rate spread is calculated by subtracting average economic cost of funds from average yield on RMBS.

CONTACT:
Orchid Island Capital, Inc.
Robert E. Cauley
Chairman and Chief Executive Officer
772-231-1400
https://ir.orchidislandcapital.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Orchid Island Capital's third-quarter 2026 earnings?

Orchid reported a net loss of $178.9 million, or $0.90 per common share, for the quarter ended September 30, 2026. That compared with net income of $72.1 million for the same period in 2025. Net interest income was $59.1 million.

What were ORC's book value and total return in third-quarter 2026?

Orchid's book value was $6.02 per common share at September 30, 2026, and quarterly total return was negative 12.47%. The return combined a $0.30 per-share dividend with a $1.20 per-share book-value decline, divided by beginning book value per share.

How did Orchid Island Capital limit leverage expansion in third-quarter 2026?

Orchid used less than $400 million in asset sales, retained monthly principal pay-downs and increased its hedges to limit leverage expansion. The company said its objective was to preserve book-value recovery potential if spreads recovered or rates decreased and to sustain the dividend.

How did mortgage prepayments change for Orchid Island Capital in third-quarter 2026?

Orchid's annualized mortgage prepayment rate fell to approximately 8.4% in third-quarter 2026 from 10.9% in second-quarter 2026. Scheduled and unscheduled principal repayments and prepayments totaled $306.0 million for the quarter ended September 30, 2026.

Orchid Island Capital Announces Third Quarter 2026 Results