OTCMKTS:BMNM Bimini Capital Management Q3 2024 Earnings Report $0.95 +0.00 (+0.44%) As of 05/2/2025 10:35 AM Eastern Earnings History Bimini Capital Management EPS ResultsActual EPS$0.03Consensus EPS N/ABeat/MissN/AOne Year Ago EPSN/ABimini Capital Management Revenue ResultsActual RevenueN/AExpected RevenueN/ABeat/MissN/AYoY Revenue GrowthN/ABimini Capital Management Announcement DetailsQuarterQ3 2024Date10/31/2024TimeAfter Market ClosesConference Call DateFriday, November 1, 2024Conference Call Time10:00AM ETConference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfilePowered by Bimini Capital Management Q3 2024 Earnings Call TranscriptProvided by QuartrNovember 1, 2024 ShareLink copied to clipboard.There are 2 speakers on the call. Operator00:00:00Morning, and welcome to the Q3 2024 Earnings Conference Call for Bimini Capital Management. This call is being recorded today, November 1, 2024. At this time, the company would like to remind the listeners that statements made during today's conference call relating to matters that are not historical facts are forward looking statements subject to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Listeners are cautioned that such forward looking statements are based on information currently available on the 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 the company's filings with the Securities and Exchange Commission, including the company's most recent annual report on Form 10 ks. Operator00:00:51The company assumes no obligation to update such forward looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward looking statements. Now, I would like to turn the conference over to the company's Chairman and Chief Executive Officer, Mr. Robert Cauley. Please go ahead, sir. Speaker 100:01:09Thank you, operator, and good morning. First, I'll give a brief synopsis of events during the quarter. The 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. Speaker 100:01:37In 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 not live up to market expectations mentioned above. Now turning to our results. Rocket Island Capital reported net income for the Q3 of 2024 of $17,300,000 and its shareholders' equity increased from $555,900,000 to 656,000,000 dollars As a result, Binnie's advisory service revenues of approximately $3,300,000 represented a 4% increase over the Q2. Speaker 100:02:31Orchid's capital base has increased substantially year to date, nearly 40%, although advisory service revenues are down 11% year to date. Orchid's capital base declined over the course of 2023 and the decline is yet to be totally reversed so far in 2024. The investment portfolio generated net interest income of $300,000 inclusive of dividends on our shares of Orchid Island, down very slightly from the prior quarter. For the year to date period, net interest income was 1,040,000 dollars versus $880,000 for the 1st 9 months of 2023. The RMBS portfolio at Royal Palm has grown by approximately 28% year to date and 37% since June 30, 2024. Speaker 100:03:16Our funding costs should decline if short term rates continue to be reduced by the Federal Reserve, potentially enhancing our net interest margin. Otherwise, our funding costs have varied slightly between 5.5% and 5.6% for the past 4 quarters. The return for the Agency RMBS Index for the quarter was 4.7% on an absolute basis and the excess return versus comparable duration swaps, a proxy for hedge returns, was 0.7%. Mark to market gains and losses on our RMBS portfolio, hedge position and shares of Orchid reported as other income on our statement of operations, netted to income of $400,000 for the quarter and $1,100,000 for the 9 month period ended September 30, 2024. The company, inclusive of both the Advisory Services segment and the Investment Portfolio segment, recorded net income before taxes for the quarter of $800,000 versus a net loss before taxes of $200,000 for the Q2 of 2024. Speaker 100:04:18For the 9 month period ended September 30, 2024, our net interest income net income before taxes was 1,250,000 dollars For the 3 9 month periods ended September 30, 2024, Bivi reported tax provisions of $500,000 $1,100,000 respectively. As the 4th quarter unfolds, the reversal in sentiment in interest rate levels that started in late September continues. The market appears to be rethinking the perceived strength of the economy and the outlook for further rate cuts by the Federal Reserve. With the presidential election on the horizon, the market seems to anticipate a possible Republican sweep with the implications being they would be pro growth with accompanying fiscal deficit expansion. As a result, interest rates are higher and mortgages have underperformed their hedges. Speaker 100:05:09There's also another FED FOMC meeting next week and the market expects another 25 basis point reduction in our overnight funding rate. We are considering using available excess funds to grow the portfolio when we sense the move has run its course. We will see how things look once the outcome of the election is determined and look forward to speaking with you again after year end. Thank you, operator, and we can turn the call over to questions. Operator00:05:53I'm showing no questions at this time. I'd like to turn the call back to Mr. Cauley for closing remarks. Speaker 100:05:58Thank you, operator, and thank you for joining us today. To the extent you have questions that come up after the call, please feel free call. Or likewise, if you did listen to the call live, listened to a recording and you have questions, you can reach us at the office. The number is 772-231-1400. Otherwise, we look forward to speaking with you again at the end of the Q4. Speaker 100:06:20Have a good day. Operator00:06:22This concludes today's conference call. Thank you for participating. You may now disconnect.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallBimini Capital Management Q3 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsPress Release(8-K)Quarterly report(10-Q) Bimini Capital Management Earnings HeadlinesBimini Capital Management, Inc. (PNK:BMNM) Q1 2025 Earnings Call TranscriptMay 3 at 3:50 PM | insidermonkey.comQ1 2025 Bimini Capital Management Inc Earnings CallMay 3 at 2:11 AM | finance.yahoo.comBuffett’s favorite chart just hit 209% – here’s what that means for goldA Historic Gold Announcement Is About to Rock Wall Street For months, sharp-eyed analysts have watched the quiet buildup behind the scenes. Now, in just days, the floodgates are set to open. The greatest investor of all time is about to validate what Garrett Goggin has been saying for months: Gold is entering a once-in-a-generation mania. Front-running Buffett has never been more urgent — and four tiny miners could be your ticket to 100X gains.May 5, 2025 | Golden Portfolio (Ad)Bimini Capital Management, Inc. (BMNM) Q1 2025 Earnings Call TranscriptMay 2 at 2:01 PM | seekingalpha.comBimini Capital Management Announces First Quarter 2025 ResultsMay 1, 2025 | globenewswire.comBimini Capital Management Inc (BMNM) Q4 2024 Earnings Call Highlights: Navigating Economic ...April 21, 2025 | finance.yahoo.comSee More Bimini Capital Management Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Bimini Capital Management? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Bimini Capital Management and other key companies, straight to your email. Email Address About Bimini Capital ManagementBimini Capital Management (OTCMKTS:BMNM), through its subsidiaries, operates as a specialty finance company in the United States. The company operates in two segments, Asset Management and Investment Portfolio. The Asset Management segment includes investment advisory services by Bimini Advisors to Orchid Island Capital, Inc. and Royal Palm Capital, LLC. The Investment Portfolio segment engages in investment activities conducted by Royal Palm Capital, LLC. It invests in residential mortgage-backed securities. The company was formerly known as Opteum Inc. and changed its name to Bimini Capital Management, Inc. in September 2007. Bimini Capital Management, Inc. was founded in 2003 and is based in Vero Beach, Florida.View Bimini Capital Management ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Is Reddit Stock a Buy, Sell, or Hold After Earnings Release?Warning or Opportunity After Super Micro Computer's EarningsAmazon Earnings: 2 Reasons to Love It, 1 Reason to Be CautiousRocket Lab Braces for Q1 Earnings Amid Soaring ExpectationsMeta Takes A Bow With Q1 Earnings - Watch For Tariff Impact in Q2Palantir Earnings: 1 Bullish Signal and 1 Area of ConcernVisa Q2 Earnings Top Forecasts, Adds $30B Buyback Plan Upcoming Earnings American Electric Power (5/6/2025)Advanced Micro Devices (5/6/2025)Marriott International (5/6/2025)Constellation Energy (5/6/2025)Arista Networks (5/6/2025)Brookfield Asset Management (5/6/2025)Duke Energy (5/6/2025)Energy Transfer (5/6/2025)Mplx (5/6/2025)Ferrari (5/6/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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There are 2 speakers on the call. Operator00:00:00Morning, and welcome to the Q3 2024 Earnings Conference Call for Bimini Capital Management. This call is being recorded today, November 1, 2024. At this time, the company would like to remind the listeners that statements made during today's conference call relating to matters that are not historical facts are forward looking statements subject to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Listeners are cautioned that such forward looking statements are based on information currently available on the 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 the company's filings with the Securities and Exchange Commission, including the company's most recent annual report on Form 10 ks. Operator00:00:51The company assumes no obligation to update such forward looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward looking statements. Now, I would like to turn the conference over to the company's Chairman and Chief Executive Officer, Mr. Robert Cauley. Please go ahead, sir. Speaker 100:01:09Thank you, operator, and good morning. First, I'll give a brief synopsis of events during the quarter. The 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. Speaker 100:01:37In 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 not live up to market expectations mentioned above. Now turning to our results. Rocket Island Capital reported net income for the Q3 of 2024 of $17,300,000 and its shareholders' equity increased from $555,900,000 to 656,000,000 dollars As a result, Binnie's advisory service revenues of approximately $3,300,000 represented a 4% increase over the Q2. Speaker 100:02:31Orchid's capital base has increased substantially year to date, nearly 40%, although advisory service revenues are down 11% year to date. Orchid's capital base declined over the course of 2023 and the decline is yet to be totally reversed so far in 2024. The investment portfolio generated net interest income of $300,000 inclusive of dividends on our shares of Orchid Island, down very slightly from the prior quarter. For the year to date period, net interest income was 1,040,000 dollars versus $880,000 for the 1st 9 months of 2023. The RMBS portfolio at Royal Palm has grown by approximately 28% year to date and 37% since June 30, 2024. Speaker 100:03:16Our funding costs should decline if short term rates continue to be reduced by the Federal Reserve, potentially enhancing our net interest margin. Otherwise, our funding costs have varied slightly between 5.5% and 5.6% for the past 4 quarters. The return for the Agency RMBS Index for the quarter was 4.7% on an absolute basis and the excess return versus comparable duration swaps, a proxy for hedge returns, was 0.7%. Mark to market gains and losses on our RMBS portfolio, hedge position and shares of Orchid reported as other income on our statement of operations, netted to income of $400,000 for the quarter and $1,100,000 for the 9 month period ended September 30, 2024. The company, inclusive of both the Advisory Services segment and the Investment Portfolio segment, recorded net income before taxes for the quarter of $800,000 versus a net loss before taxes of $200,000 for the Q2 of 2024. Speaker 100:04:18For the 9 month period ended September 30, 2024, our net interest income net income before taxes was 1,250,000 dollars For the 3 9 month periods ended September 30, 2024, Bivi reported tax provisions of $500,000 $1,100,000 respectively. As the 4th quarter unfolds, the reversal in sentiment in interest rate levels that started in late September continues. The market appears to be rethinking the perceived strength of the economy and the outlook for further rate cuts by the Federal Reserve. With the presidential election on the horizon, the market seems to anticipate a possible Republican sweep with the implications being they would be pro growth with accompanying fiscal deficit expansion. As a result, interest rates are higher and mortgages have underperformed their hedges. Speaker 100:05:09There's also another FED FOMC meeting next week and the market expects another 25 basis point reduction in our overnight funding rate. We are considering using available excess funds to grow the portfolio when we sense the move has run its course. We will see how things look once the outcome of the election is determined and look forward to speaking with you again after year end. Thank you, operator, and we can turn the call over to questions. Operator00:05:53I'm showing no questions at this time. I'd like to turn the call back to Mr. Cauley for closing remarks. Speaker 100:05:58Thank you, operator, and thank you for joining us today. To the extent you have questions that come up after the call, please feel free call. Or likewise, if you did listen to the call live, listened to a recording and you have questions, you can reach us at the office. The number is 772-231-1400. Otherwise, we look forward to speaking with you again at the end of the Q4. Speaker 100:06:20Have a good day. Operator00:06:22This concludes today's conference call. Thank you for participating. You may now disconnect.Read morePowered by