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Bimini Capital Management Announces Third Quarter 2024 Results

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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 %.

Positive
  • 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
Negative
  • 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 2% target and hiring and wage growth are slowing while the unemployment rate has steadily risen. In contrast, growth in the economy and consumer spending have remained robust throughout. In late September the Fed reduced the overnight funding rate by 50 basis points, and the market anticipated it was the first of many such cuts.  Unfortunately, the non-farm payroll report for September 2024, released in early October, as well as the latest readings on inflation and consumer spending, imply the economy may not be weakening so much after-all. If this proves to be the case the magnitude and urgency of additional rate cuts by the Fed may differ with those market expectations mentioned above.

“Orchid Island Capital reported net income for the third quarter 2024 of $17.3 million and its shareholders equity increased from $555.9 million to $656.0 million. As a result, Bimini's advisory service revenues of approximately $3.3 million represented a 4% increase over the second quarter. The growth in Orchid’s capital base during the third quarter would translate into higher quarterly revenues – all else equal – for a full quarter. As mentioned above, if the Fed’s easing cycle proves to be brief and the economy remains resilient, capital raising opportunities for Orchid may not materialize in the near term.

“The investment portfolio generated net interest income of $0.3 million inclusive of dividends on our shares of Orchid Island. Mark to market gains and losses on our MBS portfolio, hedge positions and shares of Orchid netted to income of $0.4 million. The Company – inclusive of both the advisory services segment and the investment portfolio segment, recorded net income before taxes for the quarter of $0.8 million versus a net loss before taxes of $0.2 million for the second quarter of 2024.”

Details of Third Quarter 2024 Results of Operations

The Company reported net income of $0.3 million for the three-month period ended September 30, 2024. Advisory service revenue for the quarter was $3.3 million. We recorded interest and dividend income of $1.7 million and interest expense on repurchase agreements of $1.4 million and on long-term debt of $0.6 million. We recorded an unrealized $0.1 million mark to market loss on our shares of Orchid common stock, net unrealized gains of $2.5 million on our MBS portfolio and net losses of $2.0 million on our derivative holdings. The results for the quarter also included operating expenses of $2.6 million and an income tax provision of $0.5 million.

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 $(0.1) million and dividends of $0.2 million from its investment in Orchid’s common stock. Also, during the three months ended September 30, 2024, Bimini recorded $3.3 million in advisory services revenue for managing Orchid’s portfolio consisting of $2.4 million of management fees, $0.6 million in overhead reimbursement and $0.2 million in repurchase, clearing and administrative fees.

Book Value Per Share

The Company's Book Value Per Share on September 30, 2024 was $0.83. The Company computes Book Value Per Share by dividing total stockholders' equity by the total number of shares outstanding of the Company's Class A Common Stock. At September 30, 2024, the Company's stockholders’ equity was $8.3 million, with 10,005,457 Class A Common shares outstanding.

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 7.5% and 2.1%, respectively, for the three months ended September 30, 2024. The combined portfolio generated a return on invested capital of approximately 6.2%.

  
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 $2.2 million in scheduled and unscheduled principal repayments and prepayments, which equated to a 3-month constant prepayment rate (“CPR”) of approximately 6.3% for the third quarter of 2024. Prepayment rates on the two MBS sub-portfolios were as follows (in CPR):

       
  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 1.0% would be expected to cause a 2.627% decrease in the value of the MBS in the Company’s investment portfolio at September 30, 2024. An effective duration of 2.508 indicates that an interest rate increase of 1.0% would be expected to cause a 2.508% decrease in the value of the MBS in the Company’s investment portfolio at December 31, 2023. These figures include the structured securities in the portfolio but not the effect of the Company’s hedges. Effective duration quotes for individual investments are obtained from The Yield Book, Inc.
   

Financing and Liquidity

As of September 30, 2024, the Company had outstanding repurchase obligations of approximately $113.0 million with a net weighted average borrowing rate of 5.20%. These agreements were collateralized by MBS with a fair value, including accrued interest, of approximately $118.8 million. At September 30, 2024, the Company’s liquidity was approximately $4.7 million, consisting of unpledged MBS and cash and cash equivalents.

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?

Bimini Capital Management reported earnings of $0.03 per common share in Q3 2024.

What was BMNM's book value per share as of September 30, 2024?

Bimini Capital Management's book value per share was $0.83 as of September 30, 2024.

How much advisory service revenue did BMNM generate in Q3 2024?

BMNM generated $3.3 million in advisory service revenue during Q3 2024, a 4% increase from Q2.

What was Bimini Capital Management's (BMNM) net income for Q3 2024?

BMNM reported a net income of $0.3 million for the third quarter of 2024.

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Asset Management
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