Bimini Capital Management Q1 2025 Earnings Report

Bimini Capital Management EPS Results

• Actual EPS: $0.06
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Bimini Capital Management Revenue Results

• Actual Revenue: $3.69 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Bimini Capital Management Announcement Details

• Quarter: Q1 2025
• Date: 5/1/2025
• Time: After Market Closes
• Conference Call Date: Friday, May 2, 2025
• Conference Call Time: 10:00AM ET

Bimini Capital Management (OTCMKTS:BMNM), Inc., 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.

Bimini Capital Management Q1 2025 Earnings Call Transcript

Key Takeaways

• Market conditions of range-bound interest rates and low volatility created ideal conditions for Bimini’s levered agency RMBS strategy, resulting in attractive returns for both the company and Orchid Island Capital.
• Orchid Island Capital raised $205,400,000 during Q1, boosting shareholders’ equity from $668.5 million to $855.9 million and driving advisory service revenues to $3.6 million, up 22% year-over-year and 6% quarter-over-quarter.
• Orchid reported net income of $17,100,000 and a 2.6% book-value return for the quarter, while Royal Palm’s net interest income rose approximately 64% year-over-year and 35% quarter-over-quarter.
• Combined net income before taxes was $730,000 (net income of $560,000 after a $180,000 tax provision), with expenses up 4% quarter-over-quarter but down 3% year-over-year.
• Second-quarter performance faces uncertainty from new tariffs, though potential Fed rate cuts or a steeper yield curve could enhance net interest margins for both the advisory and investment portfolios.

Presentation

[Operator]

Good morning, and welcome to the First Quarter twenty twenty five Earnings Conference Call for Bimini Capital Management. This call is being recorded today, 05/02/2025. 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.

[Operator]

The 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.

[Robert Cauley, Chairman, CEO & Secretary at Bimini Capital Management]

Thank you, operator, and good morning. Unlike the first month of the second quarter, the first quarter of twenty twenty five was relatively uneventful. Interest rates will generally range bound and volatility was low for most of the quarter. These are ideal conditions for a levered investment strategy and agency RMBS. Accordingly, the company and Orchid Island Capital, the REIT we externally manage, generated attractive returns for the period.

[Robert Cauley, Chairman, CEO & Secretary at Bimini Capital Management]

Orchid stock also traded well during the quarter, at least until the last week of the quarter. Orchid was able to take advantage of these conditions and the performance of its common stock price and raise additional capital, enhancing the company's advisory services revenues going forward. Orchid raised $205,400,000 during the quarter and its shareholders' equity increased from 668,500,000.0 at twelvethirty onetwenty four to $855,900,000 at the March. As a result, BME's advisory service revenues of approximately $3,600,000 represented a 22% increase over the first quarter of twenty twenty four and a 6% increase over the fourth quarter of twenty twenty four. Finally, Orchid reported net income for the first quarter of twenty twenty five of $17,100,000 and generated a 2.6 return on its book value for the quarter, not annualized.

[Robert Cauley, Chairman, CEO & Secretary at Bimini Capital Management]

As you know, owing to our net operating losses, we have the ability to retain earnings and deploy them into our investment portfolio. Our Royal Palm subsidiary did not add to its RMBS portfolio during the first quarter of twenty twenty five, but did so several times during 2024, and interest revenue increased 25 over the first quarter of twenty twenty four and four percent over the fourth quarter of twenty twenty four. With funding costs down as a result of Fed rate cuts late in 2024, net interest income, inclusive of dividends from our holdings of Orchid common shares, increased approximately 64% over the first quarter of twenty twenty four and approximately 35% over the fourth quarter of twenty twenty four. Note that these figures represent just the net interest income from the investment portfolio and do not include interest charges on our trust preferred or other long term debt. To it, interest charges on our floating rate trust preferred and other long term debt of $540,000 were down 8% from the fourth quarter of twenty twenty four and twelve percent from the first quarter of twenty twenty four.

[Robert Cauley, Chairman, CEO & Secretary at Bimini Capital Management]

Expenses of $2,920,000 increased 4% from the fourth quarter of twenty twenty four and decreased by 3% from the first quarter of twenty twenty four. The company, inclusive of both the advisory service segment and the investment portfolio segment, recorded net income before taxes for the first quarter of twenty twenty five of $730,000 versus $560,000 for the fourth quarter of twenty twenty four and $610,000 for the first quarter of twenty twenty four. We recorded a tax provision of $180,000 and net income for the first quarter of twenty twenty five of $560,000 While market conditions in the first quarter were very supportive of our two operating segments, conditions so far in the second quarter have been challenging. At the moment, there remains considerable uncertainty about how the tariffs introduced by the new administration will ultimately impact the economy and markets, especially those announced on Liberation Day, April second. However, to the extent the economy slows, leading to potential additional rate cuts by the Federal Reserve and or longer term interest rates rise as a result of inflationary impacts of the tariffs, both the company's investment portfolio as well as Orchids could benefit from enhanced net interest margins resulting from the steeper interest rate curve.

[Robert Cauley, Chairman, CEO & Secretary at Bimini Capital Management]

Operator, that concludes our prepared remarks and we'll open the call up for questions.

[Operator]

Thank you. And I would now like to turn the call back over to Robert Cauley for any closing remarks.

[Robert Cauley, Chairman, CEO & Secretary at Bimini Capital Management]

Thank you, operator, and thank you all for listening in. To the extent a question does come to mind later or you listen to the replay and have any questions, please feel free to reach out to us at the office. The number is (772) 231-1400. Otherwise, thank you. We look forward to talking to you at the end of the second quarter.

Participants

Executives

• Robert Cauley, Chairman, CEO & Secretary