Bimini Capital Management Announces Third Quarter 2024 Results
Bimini Capital Management (OTCQB: BMNM) reported net income of $0.3 million, or $0.03 per common share, for Q3 2024. Advisory service revenue was $3.3 million, representing a 4% increase over Q2. The company's book value per share stood at $0.83. The MBS portfolio generated net interest income of $0.3 million, with mark-to-market gains and losses netting to income of $0.4 million. Total assets were $151.6 million, with outstanding repurchase obligations of $113.0 million at a net weighted average borrowing rate of 5.20%.
Bimini Capital Management (OTCQB: BMNM) ha riportato un utile netto di 0,3 milioni di dollari, pari a 0,03 dollari per azione comune, per il terzo trimestre del 2024. I ricavi da servizi di consulenza ammontano a 3,3 milioni di dollari, con un aumento del 4% rispetto al secondo trimestre. Il valore contabile per azione dell'azienda è stato di 0,83 dollari. Il portafoglio MBS ha generato un reddito netto da interessi di 0,3 milioni di dollari, con guadagni e perdite mark-to-market che si sono tradotti in un reddito di 0,4 milioni di dollari. Le attività totali ammontano a 151,6 milioni di dollari, con obbligazioni di riacquisto in sospeso di 113,0 milioni di dollari a un tasso di interesse medio ponderato netto del 5,20%.
Bimini Capital Management (OTCQB: BMNM) reportó un ingreso neto de $0.3 millones, o $0.03 por acción común, para el tercer trimestre de 2024. Los ingresos por servicios de asesoría fueron de $3.3 millones, lo que representa un aumento del 4% respecto al segundo trimestre. El valor contable por acción de la compañía se situó en $0.83. La cartera de MBS generó un ingreso neto de intereses de $0.3 millones, con ganancias y pérdidas mark-to-market que resultaron en un ingreso de $0.4 millones. Los activos totales fueron de $151.6 millones, con obligaciones de recompra pendientes de $113.0 millones a una tasa de interés promedio ponderada neta del 5.20%.
비미니 캐피탈 매니지먼트 (OTCQB: BMNM)는 2024년 3분기에 순이익 30만 달러, 즉 보통주당 0.03달러를 보고했습니다. 자문 서비스 수익은 330만 달러로, 2분기 대비 4% 증가했습니다. 회사의 주당 장부 가치는 0.83달러였습니다. MBS 포트폴리오는 30만 달러의 순 이자 수익을 생성했으며, 시장가치 변동에 따른 손익이 40만 달러의 수익으로 netted 되었습니다. 총 자산은 1억 5천 1백 60만 달러였으며, 1억 1천 3백만 달러의 미결제 환매 의무가 5.20%의 순 가중 평균 차입금리로 존재합니다.
Bimini Capital Management (OTCQB: BMNM) a rapporté un revenu net de 0,3 million de dollars, soit 0,03 dollar par action ordinaire, pour le troisième trimestre de 2024. Les revenus des services de conseil étaient de 3,3 millions de dollars, représentant une augmentation de 4 % par rapport au deuxième trimestre. La valeur comptable par action de l'entreprise était de 0,83 dollar. Le portefeuille MBS a généré un revenu net d'intérêts de 0,3 million de dollars, avec des gains et pertes marqués sur le marché net de 0,4 million de dollars. Les actifs totaux s'élevaient à 151,6 millions de dollars, avec des obligations de rachat en suspens de 113,0 millions de dollars à un taux d'emprunt moyen pondéré net de 5,20 %.
Bimini Capital Management (OTCQB: BMNM) berichtete für das 3. Quartal 2024 einen Nettogewinn von 0,3 Millionen Dollar, was 0,03 Dollar pro Stammaktie entspricht. Die Einnahmen aus Beratungsdienstleistungen betrugen 3,3 Millionen Dollar, was einem Anstieg von 4 % gegenüber dem 2. Quartal entspricht. Der Buchwert pro Aktie des Unternehmens belief sich auf 0,83 Dollar. Das MBS-Portfolio generierte einen Nettzinsgewinn von 0,3 Millionen Dollar, wobei die Gewinne und Verluste aus der Marktwertanpassung einen Einkommenserlös von 0,4 Millionen Dollar erzielten. Die Gesamtsumme der Vermögenswerte betrug 151,6 Millionen Dollar, mit ausstehenden Rückkaufverpflichtungen von 113,0 Millionen Dollar bei einem gewichteten durchschnittlichen Nettokreditkosten von 5,20 %.
- Net income of $0.3 million in Q3 2024, improving from a $0.2 million loss in Q2
- Advisory service revenues increased 4% quarter-over-quarter to $3.3 million
- Mark to market gains of $2.5 million on MBS portfolio
- Interest expense increased to $2.0 million in Q3 2024 from $1.4 million in Q3 2023
- $0.1 million mark to market loss on Orchid common stock holdings
- Net losses of $2.0 million on derivative holdings
VERO BEACH, Fla., Oct. 31, 2024 (GLOBE NEWSWIRE) -- Bimini Capital Management, Inc. (OTCQB: BMNM), (“Bimini Capital,” “Bimini,” or the “Company”), today announced results of operations for the three-month period ended September 30, 2024.
Third Quarter 2024 Highlights
- Net income of
$0.3 million , or$0.03 per common share - Book value per share of
$0.83 - Company to discuss results on Friday, November 1, 2024, at 10:00 AM ET
Management Commentary
Commenting on the third quarter results, Robert E. Cauley, Chairman and Chief Executive Officer, said, “The long-awaited impacts of tight monetary policy orchestrated by the Federal Reserve appear to have finally had the desired impacts on inflation and the imbalances in the labor market. Inflation is closing in on the Fed’s
“Orchid Island Capital reported net income for the third quarter 2024 of
“The investment portfolio generated net interest income of
Details of Third Quarter 2024 Results of Operations
The Company reported net income of
Management of Orchid Island Capital, Inc.
Orchid is managed and advised by Bimini. As Manager, Bimini is responsible for administering Orchid’s business activities and day-to-day operations. Pursuant to the terms of the management agreement, Bimini Advisors provides Orchid with its management team, including its officers, along with appropriate support personnel. Bimini also maintains a common stock investment in Orchid which is accounted for under the fair value option, with changes in fair value recorded in the statement of operations for the current period. For the three months ended September 30, 2024, Bimini’s statement of operations included a fair value adjustment of
Book Value Per Share
The Company's Book Value Per Share on September 30, 2024 was
Capital Allocation and Return on Invested Capital
The Company allocates capital between two MBS sub-portfolios, the pass-through MBS portfolio (“PT MBS”) and the structured MBS portfolio, consisting of interest only (“IO”) and inverse interest-only (“IIO”) securities. The table below details the changes to the respective sub-portfolios during the quarter.
Portfolio Activity for the Quarter | ||||||||||||||||||||
Structured Security Portfolio | ||||||||||||||||||||
Inverse | ||||||||||||||||||||
Pass | Interest | Interest | ||||||||||||||||||
Through | Only | Only | ||||||||||||||||||
Portfolio | Securities | Securities | Sub-total | Total | ||||||||||||||||
Market Value - June 30, 2024 | $ | 83,960,741 | $ | 2,450,477 | $ | 3,501 | $ | 2,453,978 | $ | 86,414,719 | ||||||||||
Securities purchased | 31,715,015 | - | - | - | 31,715,015 | |||||||||||||||
Return of investment | n/a | (84,011 | ) | (162 | ) | (84,173 | ) | (84,173 | ) | |||||||||||
Pay-downs | (2,097,231 | ) | n/a | n/a | n/a | (2,097,231 | ) | |||||||||||||
Discount accreted due to pay-downs | 16,953 | n/a | n/a | n/a | 16,953 | |||||||||||||||
Mark to market gains | 2,453,793 | 4,468 | 5,106 | 9,574 | 2,463,367 | |||||||||||||||
Market Value - September 30, 2024 | $ | 116,049,271 | $ | 2,370,934 | $ | 8,445 | $ | 2,379,379 | $ | 118,428,650 | ||||||||||
The tables below present the allocation of capital between the respective portfolios at September 30, 2024 and June 30, 2024, and the return on invested capital for each sub-portfolio for the three-month period ended September 30, 2024. Capital allocation is defined as the sum of the market value of securities held, less associated repurchase agreement borrowings, plus cash and cash equivalents and restricted cash associated with repurchase agreements. Capital allocated to non-portfolio assets is not included in the calculation.
Capital Allocation | ||||||||||||||||||||
Structured Security Portfolio | ||||||||||||||||||||
Inverse | ||||||||||||||||||||
Pass | Interest | Interest | ||||||||||||||||||
Through | Only | Only | ||||||||||||||||||
Portfolio | Securities | Securities | Sub-total | Total | ||||||||||||||||
September 30, 2024 | ||||||||||||||||||||
Market value | $ | 116,049,271 | $ | 2,370,934 | $ | 8,445 | $ | 2,379,379 | $ | 118,428,650 | ||||||||||
Cash equivalents and restricted cash | 5,706,502 | - | - | - | 5,706,502 | |||||||||||||||
Repurchase agreement obligations | (113,022,999 | ) | - | - | - | (113,022,999 | ) | |||||||||||||
Total(1) | $ | 8,732,774 | $ | 2,370,934 | $ | 8,445 | $ | 2,379,379 | $ | 11,112,153 | ||||||||||
% of Total | 78.6 | % | 21.3 | % | 0.1 | % | 21.4 | % | 100.0 | % | ||||||||||
June 30, 2024 | ||||||||||||||||||||
Market value | $ | 83,960,741 | $ | 2,450,477 | $ | 3,501 | $ | 2,453,978 | $ | 86,414,719 | ||||||||||
Cash equivalents and restricted cash | 6,223,538 | - | - | - | 6,223,538 | |||||||||||||||
Repurchase agreement obligations | (82,875,999 | ) | - | - | - | (82,875,999 | ) | |||||||||||||
Total(1) | $ | 7,308,280 | $ | 2,450,477 | $ | 3,501 | $ | 2,453,978 | $ | 9,762,258 | ||||||||||
% of Total | 74.9 | % | 25.1 | % | 0.0 | % | 25.1 | % | 100.0 | % | ||||||||||
The returns on invested capital in the PT MBS and structured MBS portfolios were approximately
Returns for the Quarter Ended September 30, 2024 | ||||||||||||||||||||
Structured Security Portfolio | ||||||||||||||||||||
Inverse | ||||||||||||||||||||
Pass | Interest | Interest | ||||||||||||||||||
Through | Only | Only | ||||||||||||||||||
Portfolio | Securities | Securities | Sub-total | Total | ||||||||||||||||
Interest income (expense) (net of repo cost) | $ | 71,254 | $ | 40,897 | $ | (15 | ) | $ | 40,882 | $ | 112,136 | |||||||||
Realized and unrealized gains | 2,470,746 | 4,468 | 5,106 | 9,574 | 2,480,320 | |||||||||||||||
Hedge losses | (1,991,315 | ) | n/a | n/a | n/a | (1,991,315 | ) | |||||||||||||
Total Return | $ | 550,685 | $ | 45,365 | $ | 5,091 | $ | 50,456 | $ | 601,141 | ||||||||||
Beginning capital allocation | $ | 7,308,280 | $ | 2,450,477 | $ | 3,501 | $ | 2,453,978 | $ | 9,762,258 | ||||||||||
Return on invested capital for the quarter(1) | 7.5 | % | 1.9 | % | 145.4 | % | 2.1 | % | 6.2 | % |
(1) | Calculated by dividing the Total Return by the Beginning Capital Allocation, expressed as a percentage. | |
Prepayments
For the third quarter of 2024, the Company received approximately
PT | Structured | |||||
MBS Sub- | MBS Sub- | Total | ||||
Three Months Ended | Portfolio | Portfolio | Portfolio | |||
September 30, 2024 | 6.3 | 6.7 | 6.3 | |||
June 30, 2024 | 10.9 | 5.5 | 10.0 | |||
March 31, 2024 | 18.0 | 9.2 | 16.5 | |||
December 31, 2023 | 8.9 | 4.6 | 8.0 | |||
September 30, 2023 | 4.3 | 6.6 | 4.8 | |||
June 30, 2023 | 8.0 | 13.0 | 9.6 | |||
March 31, 2023 | 2.4 | 10.3 | 5.0 | |||
Portfolio
The following tables summarize the MBS portfolio as of September 30, 2024 and December 31, 2023:
($ in thousands) | ||||||||||||||||||
Weighted | ||||||||||||||||||
Percentage | Average | |||||||||||||||||
of | Weighted | Maturity | ||||||||||||||||
Fair | Entire | Average | in | Longest | ||||||||||||||
Asset Category | Value | Portfolio | Coupon | Months | Maturity | |||||||||||||
September 30, 2024 | ||||||||||||||||||
Fixed Rate MBS | $ | 116,050 | 98.0 | % | 5.61 | % | 342 | 1-Apr-54 | ||||||||||
Structured MBS | 2,379 | 2.0 | % | 2.85 | % | 283 | 15-May-51 | |||||||||||
Total MBS Portfolio | $ | 118,429 | 100.0 | % | 5.24 | % | 341 | 1-Apr-54 | ||||||||||
December 31, 2023 | ||||||||||||||||||
Fixed Rate MBS | $ | 90,181 | 97.3 | % | 6.00 | % | 343 | 1-Nov-53 | ||||||||||
Structured MBS | 2,550 | 2.7 | % | 2.84 | % | 290 | 15-May-51 | |||||||||||
Total MBS Portfolio | $ | 92,731 | 100.0 | % | 5.44 | % | 341 | 1-Nov-53 |
($ in thousands) | ||||||||||||||||
September 30, 2024 | December 31, 2023 | |||||||||||||||
Percentage of | Percentage of | |||||||||||||||
Agency | Fair Value | Entire Portfolio | Fair Value | Entire Portfolio | ||||||||||||
Fannie Mae | $ | 35,338 | 29.8 | % | $ | 38,204 | 41.2 | % | ||||||||
Freddie Mac | 83,091 | 70.2 | % | 54,527 | 58.8 | % | ||||||||||
Total Portfolio | $ | 118,429 | 100.0 | % | $ | 92,731 | 100.0 | % |
September 30, 2024 | December 31, 2023 | |||||||
Weighted Average Pass Through Purchase Price | $ | 102.99 | $ | 104.43 | ||||
Weighted Average Structured Purchase Price | $ | 4.48 | $ | 4.48 | ||||
Weighted Average Pass Through Current Price | $ | 102.06 | $ | 101.55 | ||||
Weighted Average Structured Current Price | $ | 13.68 | $ | 13.46 | ||||
Effective Duration(1) | 2.627 | 2.508 |
(1) | Effective duration is the approximate percentage change in price for a 100 basis point change in rates. An effective duration of 2.627 indicates that an interest rate increase of | |
Financing and Liquidity
As of September 30, 2024, the Company had outstanding repurchase obligations of approximately
We may pledge more of our structured MBS as part of a repurchase agreement funding but retain cash in lieu of acquiring additional assets. In this way, we can, at a modest cost, retain higher levels of cash on hand and decrease the likelihood we will have to sell assets in a distressed market in order to raise cash. Below is a list of outstanding borrowings under repurchase obligations at September 30, 2024.
($ in thousands) | ||||||||||||||||
Repurchase Agreement Obligations | ||||||||||||||||
Weighted | Weighted | |||||||||||||||
Total | Average | Average | ||||||||||||||
Outstanding | % of | Borrowing | Maturity | |||||||||||||
Counterparty | Balances | Total | Rate | (in Days) | ||||||||||||
Marex Capital Markets Inc. | $ | 26,185 | 23.2 | % | 5.21 | % | 17 | |||||||||
Mirae Asset Securities (USA) Inc. | 20,016 | 17.7 | % | 5.25 | % | 18 | ||||||||||
DV Securities, LLC Repo | 19,930 | 17.6 | % | 5.06 | % | 28 | ||||||||||
Clear Street LLC | 17,894 | 15.8 | % | 5.31 | % | 33 | ||||||||||
South Street Securities, LLC | 17,126 | 15.2 | % | 5.03 | % | 24 | ||||||||||
Mitsubishi UFJ Securities, Inc. | 11,872 | 10.5 | % | 5.37 | % | 25 | ||||||||||
$ | 113,023 | 100.0 | % | 5.20 | % | 24 |
(1) | Equal to the fair value of securities sold (including accrued interest receivable) and cash posted as collateral, if any, minus the sum of repurchase agreement liabilities, accrued interest payable and securities posted by the counterparty (if any). | |
Summarized Consolidated Financial Statements
The following is a summarized presentation of the unaudited consolidated balance sheets as of September 30, 2024, and December 31, 2023, and the unaudited consolidated statements of operations for the nine and three months ended September 30, 2024 and 2023. Amounts presented are subject to change.
BIMINI CAPITAL MANAGEMENT, INC. CONSOLIDATED BALANCE SHEETS (Unaudited - Amounts Subject to Change) | ||||||||
September 30, 2024 | December 31, 2023 | |||||||
ASSETS | ||||||||
Mortgage-backed securities | $ | 118,428,650 | $ | 92,730,852 | ||||
Cash equivalents and restricted cash | 5,706,502 | 4,470,286 | ||||||
Orchid Island Capital, Inc. common stock, at fair value | 4,677,763 | 4,797,269 | ||||||
Accrued interest receivable | 572,506 | 488,660 | ||||||
Deferred tax assets, net | 17,995,449 | 19,047,680 | ||||||
Other assets | 4,251,713 | 4,063,267 | ||||||
Total Assets | $ | 151,632,583 | $ | 125,598,014 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Repurchase agreements | $ | 113,022,999 | $ | 86,906,999 | ||||
Long-term debt | 27,373,739 | 27,394,417 | ||||||
Other liabilities | 2,912,616 | 3,168,857 | ||||||
Total Liabilities | 143,309,354 | 117,470,273 | ||||||
Stockholders' equity | 8,323,229 | 8,127,741 | ||||||
Total Liabilities and Stockholders' Equity | $ | 151,632,583 | $ | 125,598,014 | ||||
Class A Common Shares outstanding | 10,005,457 | 10,005,457 | ||||||
Book value per share | $ | 0.83 | $ | 0.81 | ||||
BIMINI CAPITAL MANAGEMENT, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited - Amounts Subject to Change) | ||||||||||||||||
Nine Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Advisory services | $ | 9,396,828 | $ | 10,518,862 | $ | 3,300,512 | $ | 3,620,002 | ||||||||
Interest and dividend income | 4,781,408 | 2,781,763 | 1,690,252 | 1,111,659 | ||||||||||||
Interest expense | (5,558,657 | ) | (3,624,861 | ) | (1,980,863 | ) | (1,441,371 | ) | ||||||||
Net revenues | 8,619,579 | 9,675,764 | 3,009,901 | 3,290,290 | ||||||||||||
Other income (expense) | 1,067,454 | (2,466,795 | ) | 420,726 | (2,360,590 | ) | ||||||||||
Expenses | 8,439,314 | 6,657,293 | 2,627,343 | 2,105,424 | ||||||||||||
Net income (loss) before income tax provision (benefit) | 1,247,719 | 551,676 | 803,284 | (1,175,724 | ) | |||||||||||
Income tax provision (benefit) | 1,052,231 | (320,596 | ) | 547,059 | (757,016 | ) | ||||||||||
Net income (loss) | $ | 195,488 | $ | 872,272 | $ | 256,225 | $ | (418,708 | ) | |||||||
Basic and Diluted Net (Loss) Income Per Share of: | ||||||||||||||||
CLASS A COMMON STOCK | $ | 0.02 | $ | 0.09 | $ | 0.03 | $ | (0.04 | ) | |||||||
CLASS B COMMON STOCK | $ | 0.02 | $ | 0.09 | $ | 0.03 | $ | (0.04 | ) |
Three Months Ended September 30, | ||||||||
Key Balance Sheet Metrics | 2024 | 2023 | ||||||
Average MBS(1) | $ | 102,421,681 | $ | 74,315,815 | ||||
Average repurchase agreements(1) | 97,949,499 | 71,055,794 | ||||||
Average stockholders' equity(1) | 8,195,116 | 13,199,138 | ||||||
Key Performance Metrics | ||||||||
Average yield on MBS(2) | 5.80 | % | 4.51 | % | ||||
Average cost of funds(2) | 5.61 | % | 4.68 | % | ||||
Average economic cost of funds(3) | 5.75 | % | 4.74 | % | ||||
Average interest rate spread(4) | 0.19 | % | (0.17 | )% | ||||
Average economic interest rate spread(5) | 0.05 | % | (0.23 | )% |
(1) | Average MBS, repurchase agreements and stockholders’ equity balances are calculated using two data points, the beginning and ending balances. | |
(2) | Portfolio yields and costs of funds are calculated based on the average balances of the underlying investment portfolio/repurchase agreement balances and are annualized for the quarterly periods presented. | |
(3) | Represents interest cost of our borrowings and the effect of derivative agreements attributed to the period related to hedging activities, divided by average repurchase agreements. | |
(4) | Average interest rate spread is calculated by subtracting average cost of funds from average yield on MBS. | |
(5) | Average economic interest rate spread is calculated by subtracting average economic cost of funds from average yield on MBS. | |
About Bimini Capital Management, Inc.
Bimini Capital Management, Inc. invests primarily in, but is not limited to investing in, residential mortgage-related securities issued by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Government National Mortgage Association (Ginnie Mae). Its objective is to earn returns on the spread between the yield on its assets and its costs, including the interest expense on the funds it borrows. In addition, Bimini generates a significant portion of its revenue serving as the manager of the MBS portfolio of, and providing certain repurchase agreement trading, clearing and administrative services to, Orchid Island Capital, Inc.
Forward Looking Statements
Statements herein relating to matters that are not historical facts 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 Bimini Capital Management, Inc.'s filings with the Securities and Exchange Commission, including Bimini Capital Management, Inc.'s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Bimini Capital Management, 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.
Earnings Conference Call Details
An earnings conference call and live audio webcast will be hosted Friday, November 1, 2024, at 10:00 AM ET. Participants can register and receive dial-in information at https://register.vevent.com/register/BI909b06944b334b3e8e769108f5807eab. A live audio webcast of the conference call can be accessed at https://edge.media-server.com/mmc/p/qzvibaf6 or via the investor relations section of the Company's website at https://ir.biminicapital.com. An audio archive of the webcast will be available for 30 days after the call.
FAQ
What was Bimini Capital Management's (BMNM) earnings per share in Q3 2024?
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