Orchid Island Capital Announces Third Quarter 2022 Results
Orchid Island Capital (NYSE:ORC) reported a net loss of $84.5 million, or $2.40 per share, for Q3 2022, compared to a net income of $26.0 million in Q3 2021. Key metrics include a total interest income of $14.2 million and a book value per share of $11.42. The dividend declared was $0.545 per share. The company's liquidity position stands at $219.6 million, representing 54% of stockholder's equity. Despite market volatility, Orchid has repurchased 1.8 million shares since June 2022, indicating a strategic move to enhance shareholder value.
- Strong liquidity position of $219.6 million, or 54% of stockholder's equity.
- Repurchased 1.8 million shares, indicating confidence in stock value.
- Net loss of $84.5 million for Q3 2022 compared to net income of $26.0 million in Q3 2021.
- Decreased book value per share by $2.94 in Q3 2022.
Third Quarter 2022 Results
-
Net loss of
, or$84.5 million per common share, which consists of:$2.40 -
Net interest income of
, or$14.2 million per common share$0.40 -
Total expenses of
, or$5.2 million per common share$0.15 -
Net realized and unrealized losses of
, or$93.5 million per common share, on RMBS and derivative instruments, including net interest income on interest rate swaps$2.66 -
Third quarter total dividends declared and paid of
per common share$0.54 5 -
Book value per common share of
at$11.42 September 30, 2022 -
Total return of (16.7)%, comprised of
dividend per common share and$0.54 5 decrease in book value per common share, divided by beginning book value per common share$2.94
Other Financial Highlights
-
Orchid maintains a strong liquidity position of
in cash and cash equivalents and unpledged RMBS, or$219.6 million 54% of stockholder’s equity as ofSeptember 30, 2022 -
Borrowing capacity in excess of
September 30, 2022 outstanding repurchase agreement balances of , spread across 20 active lenders$3,133.9 million -
Since
June 30, 2022 , the Company has repurchased5.2% , or 1.8 million shares, of Orchid’sJune 30, 2022 common stock at a weighted average price of per share$9.02 -
Estimated book value per share as of
October 26, 2022 between and$10.60 per share$10.70 -
On
August 30, 2022 , the Company effected a one-for-five reverse stock split. All share and per share numbers have been retroactively adjusted to reflect the reverse stock split, as applicable. -
Company to discuss results on
Friday, October 28, 2022 , at10:00 AM ET - Supplemental materials to be discussed on the call can be downloaded from the investor relations section of the Company’s website at https://ir.orchidislandcapital.com
Management Commentary
Commenting on the third quarter results,
“The result of these developments was significant and widespread. Specific to Orchid Island were increases in market interest rates and a widening in the spreads that Agency RMBS securities trade relative to comparable duration
“Agency RMBS spreads relative to benchmark interest rates increased to levels observed in March of 2020 by the end of the third quarter of 2022 and have exceeded those levels in October. Returns for the Agency RMBS market for the third quarter of 2022 were (5.4)% and these returns were
Details of Third Quarter 2022 Results of Operations
The Company reported net loss of
Book value decreased by
The Company estimates book value per share as of
Prepayments
For the quarter ended
|
|
Structured |
|
|
PT RMBS |
RMBS |
Total |
Three Months Ended |
Portfolio (%) |
Portfolio (%) |
Portfolio (%) |
|
6.1 |
10.4 |
6.5 |
|
8.3 |
13.7 |
9.4 |
|
8.1 |
19.5 |
10.7 |
|
9.0 |
24.6 |
11.4 |
|
9.8 |
25.1 |
12.4 |
|
10.9 |
29.9 |
12.9 |
|
9.9 |
40.3 |
12.0 |
Portfolio
The following tables summarize certain characteristics of Orchid’s PT RMBS (as defined below) and structured RMBS as of
($ in thousands) |
|
|
|
|
|
|
||
|
|
|
|
|
Weighted |
|
||
|
|
|
Percentage |
|
Average |
|
||
|
|
|
of |
Weighted |
Maturity |
|
||
|
|
Fair |
Entire |
Average |
in |
Longest |
||
Asset Category |
|
Value |
Portfolio |
Coupon |
Months |
Maturity |
||
|
|
|
|
|
|
|
||
Fixed Rate RMBS |
$ |
3,150,403 |
98.4 |
% |
3.30 |
% |
341 |
|
|
|
50,274 |
1.6 |
% |
3.72 |
% |
278 |
|
|
|
537 |
0.0 |
% |
1.51 |
% |
289 |
|
Total Mortgage Assets |
$ |
3,201,214 |
100.0 |
% |
3.31 |
% |
336 |
|
|
|
|
|
|
|
|
||
Fixed Rate RMBS |
$ |
6,298,189 |
96.7 |
% |
2.93 |
% |
342 |
|
|
|
210,382 |
3.2 |
% |
3.40 |
% |
263 |
|
|
|
2,524 |
0.1 |
% |
3.75 |
% |
300 |
|
Total Mortgage Assets |
$ |
6,511,095 |
100.0 |
% |
3.03 |
% |
325 |
|
($ in thousands) |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
||||||
|
|
|
|
Percentage of |
|
|
|
Percentage of |
||
Agency |
|
Fair Value |
|
Entire Portfolio |
|
Fair Value |
|
Entire Portfolio |
||
Fannie Mae |
$ |
2,231,699 |
|
69.7 |
% |
$ |
4,719,349 |
|
72.5 |
% |
Freddie Mac |
|
969,515 |
|
30.3 |
% |
|
1,791,746 |
|
27.5 |
% |
Total Portfolio |
$ |
3,201,214 |
|
100.0 |
% |
$ |
6,511,095 |
|
100.0 |
% |
|
|
|
|
|
|
|
$ |
107.06 |
$ |
107.19 |
|
Weighted Average Structured Purchase Price |
$ |
18.08 |
$ |
15.21 |
|
|
$ |
89.44 |
$ |
105.31 |
|
Weighted Average Structured Current Price |
$ |
17.32 |
$ |
14.08 |
|
Effective Duration (1) |
|
5.800 |
|
3.390 |
(1) |
Effective duration of 5.800 indicates that an interest rate increase of |
Financing, Leverage and Liquidity
As of
($ in thousands) |
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
Weighted |
|
|
Weighted |
||
|
|
Total |
|
|
|
Average |
|
|
Average |
||
|
|
Outstanding |
|
% of |
|
Borrowing |
|
Amount |
Maturity |
||
Counterparty |
|
Balances |
|
Total |
|
Rate |
|
at Risk(1) |
in Days |
||
|
$ |
305,822 |
|
9.9 |
% |
|
3.05 |
% |
$ |
9,118 |
25 |
|
|
296,050 |
|
9.4 |
% |
|
2.81 |
% |
|
7,977 |
15 |
|
|
286,438 |
|
9.1 |
% |
|
3.02 |
% |
|
10,056 |
52 |
|
|
234,245 |
|
7.5 |
% |
|
3.04 |
% |
|
10,742 |
36 |
|
|
223,180 |
|
7.1 |
% |
|
2.90 |
% |
|
10,833 |
13 |
|
|
206,189 |
|
6.6 |
% |
|
3.09 |
% |
|
13,020 |
33 |
|
|
200,001 |
|
6.4 |
% |
|
3.12 |
% |
|
6,550 |
22 |
ABN AMRO Bank N.V. |
|
194,818 |
|
6.2 |
% |
|
2.89 |
% |
|
2,131 |
44 |
|
|
173,422 |
|
5.5 |
% |
|
2.75 |
% |
|
3,374 |
7 |
|
|
149,958 |
|
4.8 |
% |
|
3.14 |
% |
|
4,772 |
34 |
|
|
129,760 |
|
4.1 |
% |
|
3.14 |
% |
|
5,924 |
38 |
|
|
123,060 |
|
3.9 |
% |
|
3.15 |
% |
|
5,806 |
39 |
|
|
117,062 |
|
3.7 |
% |
|
3.14 |
% |
|
5,293 |
27 |
|
|
111,594 |
|
3.6 |
% |
|
2.87 |
% |
|
5,141 |
28 |
|
|
101,431 |
|
3.2 |
% |
|
2.88 |
% |
|
4,397 |
36 |
|
|
80,692 |
|
2.6 |
% |
|
3.14 |
% |
|
3,703 |
24 |
|
|
74,348 |
|
2.4 |
% |
|
3.14 |
% |
|
3,184 |
24 |
|
|
64,836 |
|
2.1 |
% |
|
3.15 |
% |
|
3,025 |
21 |
|
|
38,047 |
|
1.2 |
% |
|
3.12 |
% |
|
1,484 |
19 |
|
|
22,908 |
|
0.7 |
% |
|
2.78 |
% |
|
914 |
13 |
Total / Weighted Average |
$ |
3,133,861 |
|
100.0 |
% |
|
3.00 |
% |
$ |
117,444 |
29 |
(1) |
Equal to the sum of the fair value of securities sold, accrued interest receivable and cash posted as collateral (if any), minus the sum of repurchase agreement liabilities, accrued interest payable and the fair value of securities posted by the counterparties (if any). |
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
The table below presents information related to the Company’s T-Note futures contracts at
($ 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)(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
$ |
750,500 |
|
|
|
|
|
|
29,141 |
|
|
|
|
|
|
|
|
|
|
( |
$ |
174,500 |
|
|
|
|
|
$ |
13,141 |
(1) |
Open equity represents the cumulative gains (losses) recorded on open futures positions from inception. |
|
(2) |
5-Year T-Note futures contracts were valued at a price of |
The table below presents information related to the Company’s interest rate swap positions at
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
Average |
|
|
|
|
Net |
|
|
||
|
|
|
|
Fixed |
|
Average |
|
|
Estimated |
|
Average |
||
|
|
Notional |
|
Pay |
|
Receive |
|
|
Fair |
|
Maturity |
||
Expiration |
|
Amount |
|
Rate |
|
Rate |
|
|
Value |
|
(Years) |
||
> 3 to ≤ 5 years |
$ |
500,000 |
|
0.84 |
% |
|
3.46 |
% |
|
$ |
60,776 |
|
4.0 |
> 5 years |
|
900,000 |
|
1.70 |
% |
|
2.56 |
% |
|
|
108,854 |
|
6.8 |
|
$ |
1,400,000 |
|
1.39 |
% |
|
2.88 |
% |
|
$ |
169,630 |
|
5.8 |
The following table presents information related to our interest rate swaption positions as of
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Option |
|
Underlying Swap |
|||||||||||||||
|
|
|
|
|
|
Weighted |
|
|
|
|
|
|
Average |
|
Weighted |
|||
|
|
|
|
|
|
Average |
|
|
|
|
Average |
|
Adjustable |
|
Average |
|||
|
|
|
|
Fair |
|
Months to |
|
|
Notional |
|
Fixed |
|
Rate |
|
Term |
|||
Expiration |
|
Cost |
|
Value |
|
Expiration |
|
|
Amount |
|
Rate |
|
(LIBOR) |
|
(Years) |
|||
Payer Swaptions - long |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
≤ 1 year |
$ |
35,230 |
|
$ |
83,470 |
|
10.6 |
|
$ |
1,303,600 |
|
|
2.95 |
% |
|
3 Month |
|
10.0 |
>10 years |
|
7,267 |
|
|
7,725 |
|
238.9 |
|
|
80,000 |
|
|
2.07 |
% |
|
3 Month |
|
10.0 |
|
$ |
42,497 |
|
$ |
91,195 |
|
23.8 |
|
$ |
1,383,600 |
|
|
2.90 |
% |
|
3 Month |
|
10.0 |
Payer Swaptions - short |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
≤ 1 year |
$ |
(17,500 |
) |
$ |
52,315 |
|
4.7 |
|
$ |
(958,300 |
) |
|
2.95 |
% |
|
3 Month |
|
10.0 |
The following table presents information related to our interest cap positions as of
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net |
|
|
|
|
|
|
|
|
Strike |
|
|
|
|
Estimated |
|
|
|
Notional |
|
|
|
|
Swap |
|
Curve |
|
|
Fair |
|
Expiration |
|
Amount |
|
|
Cost |
|
Rate |
|
Spread |
|
|
Value |
|
|
$ |
200,000 |
|
$ |
1,450 |
|
0.09 |
% |
|
2Y10Y |
|
$ |
1,188 |
The following table summarizes our contracts to purchase and sell TBA securities as of
($ in thousands) |
|
|
|
|
|
|
|
|
||||
|
|
Notional |
|
|
|
|
|
Net |
||||
|
|
Amount |
|
Cost |
|
Market |
|
Carrying |
||||
|
|
Long (Short)(1) |
|
Basis(2) |
|
Value(3) |
|
Value(4) |
||||
|
|
|
|
|
|
|
|
|
||||
30-Year TBA securities: |
|
|
|
|
|
|
|
|
||||
|
$ |
(175,000 |
) |
$ |
(141,329 |
) |
$ |
(141,723 |
) |
$ |
(394 |
) |
|
|
(300,000 |
) |
|
(261,047 |
) |
|
(261,047 |
) |
|
- |
|
|
$ |
(475,000 |
) |
$ |
(402,376 |
) |
$ |
(402,770 |
) |
$ |
(394 |
) |
(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
(in thousands, except per share data) |
|||||||
Year |
|
|
|
Per Share
|
|
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 - YTD(1) |
|
|
|
2.155 |
|
76,024 |
|
Totals |
|
|
$ |
64.330 |
$ |
515,588 |
(1) |
On |
Book Value Per Share
The Company's book value per share at
Capital Allocation and Return on
The table below details the changes to the respective sub-portfolios during the quarter.
(in thousands) |
|||||||||||||||
Portfolio Activity for the Quarter |
|||||||||||||||
|
|
Structured Security Portfolio |
|
||||||||||||
|
Pass-Through |
Interest-Only |
Inverse Interest |
|
|
||||||||||
|
Portfolio |
Securities |
Only Securities |
Sub-total |
Total |
||||||||||
Market value - |
$ |
3,766,151 |
|
$ |
173,754 |
|
$ |
955 |
|
$ |
174,709 |
|
$ |
3,940,860 |
|
Securities purchased |
|
431,897 |
|
|
- |
|
|
- |
|
|
- |
|
|
431,897 |
|
Securities sold |
|
(683,895 |
) |
|
(112,998 |
) |
|
- |
|
|
(112,998 |
) |
|
(796,893 |
) |
Losses on sales |
|
(60,740 |
) |
|
(5,403 |
) |
|
- |
|
|
(5,403 |
) |
|
(66,143 |
) |
Return of investment |
|
n/a |
|
|
(5,221 |
) |
|
33 |
|
|
(5,188 |
) |
|
(5,188 |
) |
Pay-downs |
|
(91,283 |
) |
|
n/a |
|
|
- |
|
|
n/a |
|
|
(91,283 |
) |
Discount accretion due to pay-downs |
|
4,647 |
|
|
n/a |
|
|
- |
|
|
n/a |
|
|
4,647 |
|
Mark to market (losses) gains |
|
(216,374 |
) |
|
142 |
|
|
(451 |
) |
|
(309 |
) |
|
(216,683 |
) |
Market value - |
$ |
3,150,403 |
|
$ |
50,274 |
|
$ |
537 |
|
$ |
50,811 |
|
$ |
3,201,214 |
|
The Company allocates capital to two RMBS sub-portfolios, the pass-through RMBS portfolio, consisting of mortgage pass-through certificates issued by Fannie Mae, Freddie Mac or
The tables below present the allocation of capital between the respective portfolios at
($ in thousands) |
|||||||||||||||
Capital Allocation |
|||||||||||||||
|
|
Structured Security Portfolio |
|
||||||||||||
|
Pass-Through |
Interest-Only |
Inverse Interest |
|
|
||||||||||
|
Portfolio |
Securities |
Only Securities |
Sub-total |
Total |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Market value |
$ |
3,150,403 |
|
$ |
50,274 |
|
$ |
537 |
|
$ |
50,811 |
|
$ |
3,201,214 |
|
Cash |
|
280,952 |
|
|
- |
|
|
- |
|
|
- |
|
|
280,952 |
|
Borrowings(1) |
|
(3,133,861 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(3,133,861 |
) |
Total |
$ |
297,494 |
|
$ |
50,274 |
|
$ |
537 |
|
$ |
50,811 |
|
$ |
348,305 |
|
% of Total |
|
85.4 |
% |
|
14.4 |
% |
|
0.2 |
% |
|
14.6 |
% |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||
Market value |
$ |
3,766,151 |
|
$ |
173,754 |
|
$ |
955 |
|
$ |
174,709 |
|
$ |
3,940,860 |
|
Cash |
|
283,371 |
|
|
- |
|
|
- |
|
|
- |
|
|
283,371 |
|
Borrowings(2) |
|
(3,758,980 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(3,758,980 |
) |
Total |
$ |
290,542 |
|
$ |
173,754 |
|
$ |
955 |
|
$ |
174,709 |
|
$ |
465,251 |
|
% of Total |
|
62.4 |
% |
|
37.4 |
% |
|
0.2 |
% |
|
37.6 |
% |
|
100.0 |
% |
(1) |
At |
|
(2) |
At |
The return on invested capital in the PT RMBS and structured RMBS portfolios was approximately (26.5)% and (1.4)%, respectively, for the third quarter of 2022. The combined portfolio generated a return on invested capital of approximately (17.0)%.
($ in thousands) |
|||||||||||||||
Returns for the Quarter Ended |
|||||||||||||||
|
|
Structured Security Portfolio |
|
||||||||||||
|
Pass-Through |
Interest-Only |
Inverse Interest |
|
|
||||||||||
|
Portfolio |
Securities |
Only Securities |
Sub-total |
Total |
||||||||||
Income (net of borrowing cost) |
$ |
10,936 |
|
$ |
3,094 |
|
$ |
219 |
|
$ |
3,313 |
|
$ |
14,249 |
|
Realized and unrealized losses |
|
(272,652 |
) |
|
(5,261 |
) |
|
(451 |
) |
|
(5,712 |
) |
|
(278,364 |
) |
Derivative gains |
|
184,820 |
|
|
n/a |
|
|
n/a |
|
|
n/a |
|
|
184,820 |
|
Total Return |
$ |
(76,896 |
) |
$ |
(2,167 |
) |
$ |
(232 |
) |
$ |
(2,399 |
) |
$ |
(79,295 |
) |
Beginning Capital Allocation |
$ |
290,542 |
|
$ |
173,754 |
|
$ |
955 |
|
$ |
174,709 |
|
$ |
465,251 |
|
Return on |
|
(26.5 |
)% |
|
(1.2 |
)% |
|
(24.3 |
)% |
|
(1.4 |
)% |
|
(17.0 |
)% |
Average Capital Allocation(2) |
$ |
294,018 |
|
$ |
112,014 |
|
$ |
746 |
|
$ |
112,760 |
|
$ |
406,778 |
|
Return on |
|
(26.2 |
)% |
|
(1.9 |
)% |
|
(31.1 |
)% |
|
(2.1 |
)% |
|
(19.5 |
)% |
(1) |
Calculated by dividing the Total Return by the Beginning Capital Allocation, expressed as a percentage. |
|
(2) |
Calculated using two data points, the Beginning and Ending Capital Allocation balances. |
|
(3) |
Calculated by dividing the Total Return by the Average Capital Allocation, expressed as a percentage. |
Stock Offerings
On
Stock Repurchase Program
On
From the inception of the stock repurchase program through
Earnings Conference Call Details
An earnings conference call and live audio webcast will be hosted
About
Forward Looking Statements
Statements herein relating to matters that are not historical facts, including, but not limited to statements regarding interest rates, inflation, liquidity, pledging of our structured RMBS, funding levels and spreads, prepayment speeds, portfolio positioning and repositioning, hedging levels, dividends, growth, 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
Summarized Financial Statements
The following is a summarized presentation of the unaudited balance sheets as of
|
|||||
BALANCE SHEETS |
|||||
($ in thousands, except per share data) |
|||||
(Unaudited - Amounts Subject to Change) |
|||||
|
|
|
|
|
|
|
|
|
|||
ASSETS: |
|
|
|
|
|
Mortgage-backed securities |
$ |
3,201,214 |
$ |
6,511,095 |
|
|
|
36,118 |
|
37,175 |
|
Cash, cash equivalents and restricted cash |
|
280,952 |
|
450,442 |
|
Accrued interest receivable |
|
10,527 |
|
18,859 |
|
Derivative assets, at fair value |
|
262,318 |
|
50,786 |
|
Receivable for securities sold |
|
13,684 |
|
- |
|
Other assets |
|
1,027 |
|
320 |
|
Total Assets |
$ |
3,805,840 |
$ |
7,068,677 |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
Repurchase agreements |
$ |
3,133,861 |
$ |
6,244,106 |
|
Dividends payable |
|
5,636 |
|
11,530 |
|
Derivative liabilities, at fair value |
|
53,013 |
|
7,589 |
|
Accrued interest payable |
|
4,424 |
|
788 |
|
Due to affiliates |
|
1,075 |
|
1,062 |
|
Other liabilities |
|
207,454 |
|
35,505 |
|
Total Liabilities |
|
3,405,463 |
|
6,300,580 |
|
Total Stockholders' Equity |
|
400,377 |
|
768,097 |
|
Total Liabilities and Stockholders' Equity |
$ |
3,805,840 |
$ |
7,068,677 |
|
Common shares outstanding |
|
35,066,251 |
|
35,398,610 |
|
Book value per share |
$ |
11.42 |
$ |
21.70 |
|
|||||||||||||||
STATEMENTS OF OPERATIONS |
|||||||||||||||
($ in thousands, except per share data) |
|||||||||||||||
(Unaudited - Amounts Subject to Change) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||
|
Nine Months Ended |
Three Months Ended |
|||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Interest income |
$ |
112,735 |
|
$ |
90,279 |
|
$ |
35,610 |
|
$ |
34,169 |
|
|||
Interest expense |
|
(32,196 |
) |
|
(5,067 |
) |
|
(21,361 |
) |
|
(1,570 |
) |
|||
Net interest income |
|
80,539 |
|
|
85,212 |
|
|
14,249 |
|
|
32,599 |
|
|||
Losses on RMBS and derivative contracts |
|
(359,059 |
) |
|
(94,522 |
) |
|
(93,544 |
) |
|
(2,887 |
) |
|||
Net portfolio (loss) income |
|
(278,520 |
) |
|
(9,310 |
) |
|
(79,295 |
) |
|
29,712 |
|
|||
Expenses |
|
14,859 |
|
|
10,886 |
|
|
5,218 |
|
|
3,674 |
|
|||
Net (loss) income |
$ |
(293,379 |
) |
$ |
(20,196 |
) |
$ |
(84,513 |
) |
$ |
26,038 |
|
|||
Basic net (loss) income per share |
$ |
(8.31 |
) |
$ |
(0.95 |
) |
$ |
(2.40 |
) |
$ |
1.00 |
|
|||
Diluted net (loss) income per share |
$ |
(8.31 |
) |
$ |
(0.95 |
) |
$ |
(2.40 |
) |
$ |
1.00 |
|
|||
Weighted Average Shares Outstanding |
|
35,336,702 |
|
|
21,061,154 |
|
|
35,205,888 |
|
|
25,717,469 |
|
|||
Dividends Declared Per Common Share: |
$ |
1.995 |
|
$ |
2.925 |
|
$ |
0.545 |
|
$ |
0.975 |
|
|
|
Three Months Ended |
||||
Key Balance Sheet Metrics |
|
2022 |
2021 |
|||
Average RMBS(1) |
|
$ |
3,571,037 |
$ |
5,136,331 |
|
Average repurchase agreements(1) |
|
|
3,446,420 |
|
4,864,287 |
|
Average stockholders' equity(1) |
|
|
453,369 |
|
642,225 |
|
Leverage ratio(2) |
|
|
8.5:1 |
|
7.2:1 |
|
|
|
|
|
|
|
|
Key Performance Metrics |
|
|
|
|
|
|
Average yield on RMBS(3) |
|
|
|
|
|
|
Average cost of funds(3) |
|
|
|
|
|
|
Average economic cost of funds(4) |
|
|
|
|
|
|
Average interest rate spread(5) |
|
|
|
|
|
|
Average economic interest rate spread(6) |
|
|
|
|
|
(1) |
Average RMBS, borrowings and stockholders’ equity balances are calculated using two data points, the beginning and ending balances. |
|
(2) |
The leverage ratio is calculated by dividing total ending liabilities by ending stockholders’ equity. |
|
(3) |
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. |
|
(4) |
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. |
|
(5) |
Average interest rate spread is calculated by subtracting average cost of funds from average yield on RMBS. |
|
(6) |
Average economic interest rate spread is calculated by subtracting average economic cost of funds from average yield on RMBS. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20221027005999/en/
Chairman and Chief Executive Officer
https://ir.orchidislandcapital.com
Source:
FAQ
What were Orchid Island Capital's Q3 2022 earnings results?
How much was the dividend declared by Orchid for Q3 2022?
What is the book value per share for Orchid as of September 30, 2022?
How much liquidity does Orchid Island Capital have?