Orchid Island Capital Announces February 2023 Monthly Dividend and January 31, 2023 RMBS Portfolio Characteristics

Rhea-AI Summary

Orchid Island Capital (NYSE: ORC) has announced a $0.16 monthly cash dividend for February 2023, payable on March 29, 2023. Shareholders on record as of February 28, 2023 will receive this dividend, with an ex-dividend date of February 27, 2023. The company aims to maintain regular monthly cash distributions to comply with REIT regulations, which require at least 90% of taxable income to be distributed. As of mid-February 2023, Orchid Island Capital had approximately 39 million shares outstanding, up from 36.76 million at the end of December 2022. The next dividend announcement is expected on March 9, 2023.

Positive

• Monthly dividend of $0.16 per share signifies ongoing income for shareholders.
• Company's intention to maintain regular monthly distributions reflects confidence in business operations.

Negative

• No assurance of future distribution payments may raise concerns about cash flow sustainability.
• The requirement to distribute 90% of taxable income could pressure financial stability if income fluctuates.

• February 2023 Monthly Dividend of $0.16 Per Share of Common Stock
• RMBS Portfolio Characteristics as of January 31, 2023
• Next Dividend Announcement Expected March 9, 2023

VERO BEACH, Fla.--(BUSINESS WIRE)-- 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 February 2023. The dividend of $0.16 per share will be paid March 29, 2023 to holders of record of the Company’s common stock on February 28, 2023, with an ex-dividend date of February 27, 2023. The Company plans on announcing its next common stock dividend on March 9, 2023.

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 February 15, 2023 and January 31, 2023, the Company had 39,081,942 shares of common stock outstanding. As of December 31, 2022, the Company had 36,764,983 shares of common stock outstanding.

RMBS Portfolio Characteristics

Details of the RMBS portfolio as of January 31, 2023 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, 2021.

RMBS Valuation Characteristics
($ in thousands)
																								Realized			Realized
																								Jan-23			Nov 2022 - Jan			Modeled				Modeled
														Net								Weighted		CPR			2023 CPR			Interest				Interest
								%						Weighted								Average		(1-Month)			(3-Month)			Rate				Rate
		Current			Fair			of			Current			Average								Maturity		(Reported			(Reported			Sensitivity				Sensitivity
Type		Face			Value			Portfolio			Price			Coupon			GWAC			Age		(Months)		in Feb)			in Feb)			(-50 BPS)(1)				(+50 BPS)(1)
Pass Through RMBS
15yr 4.0		$	397		$	397		0.01	%		$	100.08		4.00	%		4.54	%		57		122		0.8	%		0.8	%		$	7			$	(7	)
15yr Total			397			397		0.01	%			100.08		4.00	%		4.54	%		57		122		0.8	%		0.8	%			7				(7	)
30yr 3.0			2,539,134			2,321,005		58.64	%			91.41		3.00	%		3.44	%		21		335		3.4	%		4.3	%			72,304				(74,304	)
30yr 3.5			212,608			203,395		5.14	%			95.67		3.50	%		4.03	%		35		316		5.5	%		7.3	%			5,487				(5,605	)
30yr 4.0			473,294			458,223		11.58	%			96.82		4.00	%		4.76	%		13		345		1.3	%		5.2	%			10,453				(11,575	)
30yr 4.5			366,453			362,741		9.16	%			98.99		4.50	%		5.45	%		7		353		2.7	%		3.4	%			5,723				(6,938	)
30yr 5.0			588,450			593,111		14.98	%			100.79		5.00	%		5.93	%		5		355		4.7	%		5.3	%			8,027				(9,944	)
30yr Total			4,179,939			3,938,475		99.50	%			94.22		3.55	%		4.14	%		17		340		3.4	%		4.5	%			101,995				(108,367	)
Total Pass Through RMBS			4,180,336			3,938,872		99.51	%			94.22		3.55	%		4.14	%		17		340		3.4	%		4.5	%			102,001				(108,373	)
Structured RMBS
IO 20yr 4.0			10,588			1,195		0.03	%			11.29		4.00	%		4.57	%		133		100		10.6	%		10.3	%			2				(3	)
IO 30yr 3.0			3,126			384		0.01	%			12.27		3.00	%		3.64	%		96		254		0.5	%		10.8	%			(5	)			4
IO 30yr 4.0			90,480			16,284		0.41	%			18.00		4.00	%		4.60	%		101		250		3.4	%		5.2	%			(678	)			507
IO 30yr 4.5			3,894			725		0.02	%			18.61		4.50	%		4.99	%		151		195		6.3	%		6.1	%			(16	)			11
IO 30yr 5.0			2,179			426		0.01	%			19.58		5.00	%		5.36	%		151		197		3.3	%		5.2	%			(15	)			12
IO Total			110,267			19,014		0.48	%			17.24		4.01	%		4.60	%		107		233		4.1	%		5.9	%			(713	)			530
IIO 30yr 4.0			31,289			430		0.01	%			1.37		0.00	%		4.40	%		64		285		8.7	%		6.2	%			103				(92	)
Total Structured RMBS			141,556			19,444		0.49	%			13.74		3.12	%		4.55	%		98		244		5.1	%		6.0	%			(610	)			438
Total Mortgage Assets		$	4,321,892		$	3,958,316		100.00	%					3.54	%		4.16	%		20		336		3.5	%		4.6	%		$	101,391			$	(107,935	)

								Interest				Interest
		Average				Hedge		Rate				Rate
		Notional				Period		Sensitivity				Sensitivity
Hedge		Balance				End		(-50 BPS)(1)				(+50 BPS)(1)
5-Year Treasury Future(2)		$	(865,500	)		Mar-23		$	(19,132	)		$	17,498
10-Year Treasury Ultra(3)			(244,500	)		Mar-23			(11,815	)			11,700
Swaps			(1,400,000	)		Jul-28			(32,323	)			31,294
TBA			(875,000	)		Feb-23			(23,441	)			25,039
Swaptions			(753,000	)		Oct-24			(6,129	)			8,744
Hedge Total		$	(4,138,000	)				$	(92,840	)		$	94,275
Rate Shock Grand Total								$	8,551			$	(13,660	)

(1)		Modeled results from Citigroup Global Markets Inc. Yield Book. Interest rate shocks assume instantaneous parallel shifts and horizon prices are calculated assuming constant LIBOR 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 $109.24 at January 31, 2023. The market value of the short position was $945.5 million.
(3)		Ten-year Treasury Ultra futures contracts were valued at prices of $121.2 at January 31, 2023. The market value of the short position was $296.3 million.

RMBS Assets by Agency
($ in thousands)
					Percentage
		Fair			of
Asset Category		Value			Portfolio
As of January 31, 2023
Fannie Mae		$	2,565,504		64.8	%
Freddie Mac			1,392,812		35.2	%
Total Mortgage Assets		$	3,958,316		100.0	%

Investment Company Act of 1940 Whole Pool Test
($ in thousands)
					Percentage
		Fair			of
Asset Category		Value			Portfolio
As of January 31, 2023
Non-Whole Pool Assets		$	158,182		4.0	%
Whole Pool Assets			3,800,134		96.0	%
Total Mortgage Assets		$	3,958,316		100.0	%

Borrowings By Counterparty
($ in thousands)
								Weighted			Weighted
					% of			Average			Average
		Total			Total			Repo			Maturity		Longest
As of January 31, 2023		Borrowings			Debt			Rate			in Days		Maturity
Mirae Asset Securities (USA) Inc.		$	319,242		9.4	%		4.58	%		73		6/22/2023
RBC Capital Markets, LLC			274,020		8.1	%		4.62	%		31		3/16/2023
Daiwa Capital Markets America Inc.			255,732		7.5	%		4.76	%		76		4/17/2023
Marex Capital Markets Inc.			239,483		7.0	%		4.70	%		55		4/28/2023
ING Financial Markets LLC			238,212		7.0	%		4.47	%		2		2/2/2023
ABN AMRO Bank N.V.			229,463		6.7	%		4.62	%		41		3/13/2023
Cantor Fitzgerald & Co			228,427		6.7	%		4.48	%		4		2/13/2023
J.P. Morgan Securities LLC			218,941		6.4	%		4.77	%		65		4/11/2023
Merrill Lynch, Pierce, Fenner & Smith			192,705		5.7	%		4.68	%		38		4/28/2023
Citigroup Global Markets Inc			193,510		5.7	%		4.54	%		8		2/22/2023
StoneX Financial Inc.			184,165		5.4	%		4.49	%		7		2/10/2023
Mitsubishi UFJ Securities (USA), Inc			179,834		5.3	%		4.68	%		51		5/1/2023
ASL Capital Markets Inc.			167,186		4.9	%		4.58	%		26		3/20/2023
Goldman, Sachs & Co.			126,954		3.7	%		4.57	%		16		2/23/2023
Santander Bank, N.A.			118,940		3.5	%		4.69	%		43		4/27/2023
Wells Fargo Bank, N.A.			94,878		2.8	%		4.54	%		13		2/13/2023
BMO Capital Markets Corp.			80,056		2.4	%		4.68	%		49		3/21/2023
South Street Securities, LLC			37,991		1.1	%		4.57	%		17		2/17/2023
Lucid Cash Fund USG, LLC			18,782		0.6	%		4.55	%		9		2/9/2023
Lucid Prime Fund, LLC			2,790		0.1	%		4.55	%		9		2/9/2023
Total Borrowings		$	3,401,311		100.0	%		4.61	%		37		6/22/2023

 

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Orchid Island Capital, Inc.

Robert E. Cauley

(772) 231-1400

Source: Orchid Island Capital, Inc.

FAQ

What is the dividend amount for Orchid Island Capital in February 2023?

The dividend amount for February 2023 is $0.16 per share.

When will the February 2023 dividend be paid to shareholders?

The February 2023 dividend will be paid on March 29, 2023.

What is the record date for Orchid Island Capital's February 2023 dividend?

The record date for the February 2023 dividend is February 28, 2023.

What is the ex-dividend date for Orchid Island Capital's February 2023 dividend?

The ex-dividend date is February 27, 2023.

When will the next dividend announcement for Orchid Island Capital take place?

The next dividend announcement is expected on March 9, 2023.