8-K
BIMINI CAPITAL MANAGEMENT, INC. (BMNM)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
March 10, 2022
Bimini Capital Management, Inc.
(Exact name of registrant as specified in its charter)
Maryland
001-32171
72-1571637
(State or Other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)
3305 Flamingo Drive
,
Vero Beach
,
Florida
32963
(Address of Principal Executive Offices) (Zip Code)
Registrant’s telephone number,
including area code
(
772
)
231-1400
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under
any of the following provisions:
☐
Written communications pursuant
to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a
-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act: None.
Indicate by check mark whether the registrant is an emerging growth
company as defined in as defined in Rule 405 of the Securities
Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange
Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
☐
If
an
emerging
growth
company,
indicate
by
check
mark
if
the
registrant
has
elected
not
to
use
the
extended
transition
period
for
complying with any new or revised financial accounting standards provided
pursuant to Section 13(a) of the Exchange Act.
☐
ITEM 2.02.
RESULTS OF
OPERATIONS AND FINANCIAL
CONDITION.
On
March
10,
2022,
Bimini
Capital
Management,
Inc.,
(the
“Company”)
issued
the
press
release
attached
hereto
as
Exhibit
99.1
announcing the Company’s consolidated
results of operations for the period ended December 31, 2021.
The information
furnished under
this “Item 2.02
Results of Operations
and Financial
Condition,” including
the exhibit related
hereto,
shall not be deemed
“filed” for purposes of Section
18 of the Securities Exchange
Act of 1934, nor
shall it be deemed incorporated
by
reference in any disclosure document of the Company,
except as shall be expressly set forth by specific reference in such document.
ITEM 9.01.
EXHIBITS.
(d)
Exhibits
Exhibit 99.1 ― Press Release of Bimini Capital Management, Inc. dated March 10, 2022.
Exhibit 104 ― Cover Page Interactive Data File (embedded within the Inline
XBRL document).
Signatures
Pursuant to the requirements of
the Securities Exchange Act of
1934, the Registrant has duly
caused this report to be
signed on its behalf
by the undersigned hereunto duly authorized.
Date: March 10, 2022
BIMINI CAPITAL MANAGEMENT,
INC.
By:
/s/ Robert E. Cauley
Robert E. Cauley
Chairman and Chief Executive Officer
bmnm10k2021
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BIMINI CAPITAL MANAGEMENT ANNOUNCES FOURTH QUARTER 2021 RESULTS
VERO BEACH, Fla. (March 10, 2022) – Bimini Capital Management, Inc. (OTCBB:BMNM),
(“Bimini Capital,” “Bimini,” or the
“Company”) today announced results of operations for the three month period
ended December 31, 2021.
Fourth Quarter 2021 Highlights
●
Net loss of $0.6 million, or $0.05 per common share
●
Book value per share of $3.08
●
Company to discuss results on Friday, March 11, 2022, at 10:00 AM ET
Management Commentary
Commenting on the fourth quarter results, Robert E. Cauley, Chairman and Chief Executive Officer, said, “The country and economy
appear to be on the verge of recovering from the COVID-19 pandemic.
Stimulated by unprecedented monetary and fiscal policy, the
most significant combination of the two since the Second World War, the fading effect of the pandemic is clearly causing the economy
to run at unsustainable levels, resulting in very tight labor markets and the highest
level of inflation in decades. The Federal Reserve
(the “Fed”) is in the midst of a rapid transformation from accommodation to constraint
and will likely begin raising short-term rates at
their meeting in March of 2022.
Currently the market anticipates the Fed will continue to raise rates throughout
the year and into 2023,
possibly by as much as 200 basis points.
Further, they are rapidly winding down their asset purchases and will likely stop asset
purchases altogether – possibly by the end of the year – as they begin the process
of “normalizing” the size of their balance sheet.
The
effect of these developments on interest rates has been a material flattening of the U.S. Treasury curve, whereby short
and
intermediate term rates rise and more so relative to longer maturity U.S. Treasuries. The Russian invasion
of Ukraine on February 24,
2022 may cause the Fed to alter their monetary policy decisions over the course
of 2022. The outbreak of hostilities has raised the
threat of a more widespread war and will certainly be inflationary, especially with respect to commodities. However, given the level of
inflation and strength of the economy at present, such developments would
likely have to be severe in order to meaningfully impact the
path of monetary policy over the near-term.
“Orchid had another strong quarter growing its shareholders’ equity after raising
net proceeds of approximately $115.5 million through
its “at the market” program during the fourth quarter of 2021. Through the end
of 2021, Orchid has increased its shareholders’ equity by
approximately $352.8 million, or 85%.
As a result, Bimini Advisor’s advisory services revenue
increased 19% over the third quarter.
Dividend income on our shares of Orchid common stock was unchanged from the
third quarter of 2021 and the fourth quarter of 2020
at $0.065 per share per month. In January 2022, Orchid announced it will be reducing
its monthly dividend to $0.055 per share.
“The Agency RMBS portfolio at Royal Palm Capital decreased by 6%
during the fourth quarter of 2021, the combined effect of $2.5
million of paydowns, return of investment on the structured securities portfolio
of $0.2 million and $0.9 million market to market loss.
Prepayment activity during the quarter was 13.7 CPR for the pass-through portfolio,
a decline from 15.5 CPR in the third quarter, and
35.2 CPR for the structured securities portfolio, an increase from 26.9 CPR
for the third quarter.
The combined portfolio prepaid at
21.1 CPR for the fourth quarter versus 18.3 CPR during the third.
The pass-through securities owned by Royal Palm are
predominantly higher coupon and more seasoned, and while rates on the loans
underlying theses securities are still in the money and
the economic incentive to refinance is still present, we are finally seeing slower
speeds, or burnout. We did see some widening in
spreads of these securities as specified pool pay-ups softened late in the quarter.
As a result, for the fourth quarter of 2021, we
BMNM Announces Fourth Quarter 2021 Results
Page 2
March 10, 2022
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recorded the mark to market loss mentioned above of $0.8 million on our RMBS
pass-through holdings. The price of our Orchid shares
declined by $0.39, or $1.0 million.
“The economic developments that occurred during the fourth quarter have continued,
and in many cases accelerated so far in 2022.
Interest rates have risen materially, and the curve has continued to flatten.
The Fed has indicated they are poised to remove
accommodation at an accelerated pace as well. For Bimini, this means our funding
costs are likely to rise materially over the course of
2022 and possibly into 2023.
While longer-term maturities have not risen as much as short and intermediate term
rates, they have
risen and refinancing and purchase activity in the residential housing market
is likely to slow. If this occurs, it would slow premium
amortization on the Company’s Agency RMBS securities. The net effect of higher funding costs and slower
premium amortization will
depend on the extent and timing of both but may reduce the Company’s net interest income.
As always, we will be diligent in the
management of our portfolio so as to minimize the effect of rising funding costs and protect
the portfolio from further adverse market
moves, likely via lower leverage.”
Details of Fourth Quarter 2021 Results of Operations
The Company reported net loss of $0.6 million, or $0.05 per common share, for the
three-month period ended December 31, 2021.
As
Orchid was able to grow its capital base during the year, advisory service revenues increased approximately 66%
compared to the
three-month period ended December 31, 2020. Interest income on MBS and interest
expense on repurchase agreements were down
approximately 14% and 50%, respectively, for the fourth quarter of 2021 compared to the same period in 2020. We recorded
mark-to-
market losses of approximately $0.9 million and $1.0 million on our MBS portfolio
and Orchid stock, respectively, during the three-
month period ended December 31, 2021. The results for the quarter also
included operating expenses of $3.2 million.
Management of Orchid Island Capital, Inc.
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 December 31, 2021, Bimini’s
statement of operations included a fair value adjustment of $(1.0) million and dividends
of $0.5 million from its investment in Orchid
common stock.
Also during the three months ended December 31, 2021, Bimini recorded
$3.0 million in advisory services revenue for
managing Orchid’s portfolio consisting of $2.6 million of management fees and $0.4 million
in overhead reimbursement.
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
Pass-Through
Interest-Only
Inverse Interest
Portfolio
Securities
Only Securities
Sub-total
Total
Market Value - September 30, 2021
$
61,372,233
$
2,999,175
$
18,869
$
3,018,044
$
64,390,277
BMNM Announces Fourth Quarter 2021 Results
Page 3
March 10, 2022
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Return of Investment
n/a
(197,478)
(2,880)
(200,358)
(200,358)
Pay-downs
(2,509,429)
n/a
n/a
n/a
(2,509,429)
Premium Lost Due to Pay-downs
(272,860)
n/a
n/a
n/a
(272,860)
Mark to Market (Losses)
(561,085)
(42,428)
(973)
(43,401)
(604,486)
Market Value - December 31, 2021
$
58,028,859
$
2,759,269
$
15,016
$
2,774,285
$
60,803,144
The tables below present the allocation of capital between the respective
portfolios at December 31, 2021 and September 30, 2021,
and the return on invested capital for each sub-portfolio for the three month period
ended December 31, 2021.
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.
The returns on invested capital in the PT MBS and structured MBS portfolios
were approximately (4.6)% and (1.1)%, respectively, for
the fourth quarter of 2021.
The combined portfolio generated a return on invested capital
of approximately (3.6)%.
Capital Allocation
Structured Security Portfolio
Pass-Through
Interest-Only
Inverse Interest
Portfolio
Securities
Only Securities
Sub-total
Total
December 31, 2021
Market Value
$
58,028,859
$
2,759,269
$
15,016
$
2,774,285
$
60,803,144
Cash equivalents and restricted cash
(1)
9,812,410
-
-
-
9,812,410
Repurchase Agreement Obligations
(58,877,999)
-
-
-
(58,877,999)
Total
(2)
$
8,963,270
$
2,759,269
$
15,016
$
2,774,285
$
11,737,555
% of Total
76.4%
23.5%
0.1%
23.6%
100.0%
September 30, 2021
Market Value
$
61,372,233
$
2,999,175
$
18,869
$
3,018,044
$
64,390,277
Cash equivalents and restricted cash
(1)
9,544,843
-
-
-
9,544,843
Repurchase Agreement Obligations
(63,159,999)
-
-
-
(63,159,999)
Total
(2)
$
7,757,077
$
2,999,175
$
18,869
$
3,018,044
$
10,775,121
% of Total
72.0%
27.8%
0.2%
28.0%
100.0%
(1)
Amount excludes restricted cash of $0 and $160 at December 31, 2021 and
September 30, 2021, respectively, related
to trust preferred debt
funding hedges.
(2)
Invested capital includes the value of the MBS portfolio and cash equivalents and
restricted cash, reduced by repurchase agreement
borrowings.
Returns for the Quarter Ended December 31, 2021
Structured Security Portfolio
Pass-Through
Interest-Only
Inverse Interest
Portfolio
Securities
Only Securities
Sub-total
Total
Income (net of repo cost)
$
478,466
$
11,235
$
(5)
$
11,230
$
489,696
Realized and unrealized (losses) gains
(833,944)
(42,428)
(973)
(43,401)
(877,345)
$
(355,478)
$
(31,193)
$
(978)
$
(32,171)
$
(387,649)
Beginning Capital Allocation
7,757,077
2,999,175
18,869
3,018,044
10,775,121
Return on Invested Capital for the Quarter
(1)
(4.6)%
(1.0)%
(5.2)%
(1.1)%
(3.6)%
(1)
Calculated by dividing the Total
Return by the Beginning Capital Allocation, expressed as a percentage.
BMNM Announces Fourth Quarter 2021 Results
Page 4
March 10, 2022
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Prepayments
For the fourth quarter of 2021, the Company received approximately $2.7
million in scheduled and unscheduled principal repayments
and prepayments, which equated to a constant prepayment rate (“CPR”)
of approximately 21.1% for the fourth quarter of 2021.
Prepayment rates on the two MBS sub-portfolios were as follows (in CPR):
PT
Structured
MBS Sub-
MBS Sub-
Total
Three Months Ended
Portfolio
Portfolio
Portfolio
December 31, 2021
13.7
35.2
21.1
September 30, 2021
15.5
26.9
18.3
June 30, 2021
21.0
31.3
21.9
March 31, 2021
18.5
16.4
18.3
December 31, 2020
12.8
24.5
14.4
September 30, 2020
13.0
32.0
15.8
June 30, 2020
12.4
25.0
15.3
March 31, 2020
11.6
18.1
13.7
Portfolio
The following tables summarize the MBS portfolio as of December 31, 2021 and
2020.
($ in thousands)
Weighted
Percentage
Average
of
Weighted
Maturity
Fair
Entire
Average
in
Longest
Asset Category
Value
Portfolio
Coupon
Months
Maturity
December 31, 2021
Fixed Rate MBS
$
58,029
95.4%
3.69%
330
1-Sep-51
Interest-Only Securities
2,759
4.6%
2.86%
306
15-May-51
Inverse Interest-Only Securities
15
0.0%
5.90%
209
15-May-39
Total Mortgage Assets
$
60,803
100.0%
3.41%
329
1-Sep-51
December 31, 2020
Fixed Rate MBS
$
64,902
99.6%
3.89%
333
1-Aug-50
Interest-Only Securities
251
0.4%
3.56%
299
15-Jul-48
Inverse Interest-Only Securities
25
0.0%
5.84%
221
15-May-39
Total Mortgage Assets
$
65,178
100.0%
3.89%
333
1-Aug-50
($ in thousands)
December 31, 2021
December 31, 2020
Percentage of
Percentage of
Agency
Fair Value
Entire Portfolio
Fair Value
Entire Portfolio
Fannie Mae
$
39,703
65.3%
$
38,946
59.8%
Freddie Mac
21,100
34.7%
26,232
40.2%
Total Portfolio
$
60,803
100.0%
$
65,178
100.0%
BMNM Announces Fourth Quarter 2021 Results
Page 5
March 10, 2022
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Entire Portfolio
December 31, 2021
December 31, 2020
Weighted Average Pass-Through Purchase Price
$
109.33
$
109.51
Weighted Average Structured Purchase Price
$
4.81
$
4.28
Weighted Average Pass-Through Current Price
$
109.30
$
112.67
Weighted Average Structured Current Price
$
9.87
$
3.20
Effective Duration
(1)
2.103
3.309
(1)
Effective duration of 2.103 indicates that an interest rate increase of
1.0% would be expected to cause a 2.103% decrease in the value of the
MBS in the Company’s investment portfolio at December 31, 2021.
An effective duration of 3.309 indicates that an interest rate increase
of
1.0% would be expected to cause a 3.309% decrease in the value of the MBS in the
Company’s investment portfolio at December 31,
2020.
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, Leverage and Liquidity
As of December
31, 2021,
the Company
had outstanding
repurchase
obligations
of approximately
$58.9 million
with a net
weighted
average borrowing
rate of 0.14%.
These agreements
were collateralized
by MBS with
a fair value,
including
accrued interest,
of
approximately
$61.0 million,
and cash pledged
to counterparties
of approximately
$1.4 million.
At December
31, 2021,
the Company’s
liquidity
was approximately
$8.4 million,
consisting
of unpledged
MBS and cash
and cash equivalents.
We may pledge
more of our
structured
MBS as part
of a repurchase
agreement
funding,
but retain
cash in lieu
of acquiring
additional
assets.
In this way, we
can, at a
modest cost,
retain higher
levels of
cash on hand
and decrease
the likelihood
we will have
to sell assets
in a distressed
market in
order to
raise cash.
Below is
a listing
of outstanding
borrowings
under repurchase
obligations
at December
31,
2021.
($ in thousands)
Repurchase Agreement Obligations
Weighted
Weighted
Total
Average
Average
Outstanding
% of
Borrowing
Amount
Maturity
Counterparty
Balances
Total
Rate
at Risk
(1)
(in Days)
Mirae Asset Securities (USA) Inc.
$
34,205
58.1%
0.13%
$
1,844
15
ED&F Man Capital Markets, Inc.
11,996
20.4%
0.11%
417
14
South Street Securities, LLC
5,352
9.1%
0.15%
254
18
Citigroup Global Markets, Inc.
5,120
8.7%
0.15%
544
21
Mitsubishi UFJ Securities (USA), Inc.
2,205
3.7%
0.52%
461
20
$
58,878
100.0%
0.14%
$
3,520
16
(1)
Equal to the
fair value of
securities sold
plus accrued
interest receivable
and cash posted
as collateral
(if any), minus
the sum of repurchase
agreement liabilities
and accrued
interest payable.
Book Value Per
Share
The Company's
Book Value Per
Share at
December
31, 2021 was
$3.08.
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
December
31, 2021,
the
Company's
stockholders’
equity was
$33.0 million
with 10,702,194
Class A Common
shares outstanding.
BMNM Announces Fourth Quarter 2021 Results
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March 10, 2022
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Stock Repurchase
Plans
On March 26,
2018, the
Board of
Directors
of the Company
approved
a Stock Repurchase
Plan (the
“2018 Repurchase
Plan”).
Pursuant
to the 2018
Repurchase
Plan, we
could purchase
up to 500,000
shares of
the Company’s
Class A Common
Stock from
time to time,
subject to
certain limitations
imposed by
Rule 10b-18
of the Securities
Exchange
Act of 1934.
The 2018
Repurchase
Plan was terminated
on September
16, 2021.
During the
period beginning
January 1,
2021 through
September
16, 2021,
the Company
repurchased
a total of
1,195 shares
under the
2018 Repurchase
Plan at an
aggregate
cost of approximately
$2,298, including
commissions
and fees,
for a weighted
average price
of
$1.92 per
share. From
commencement
of the 2018
Repurchase
Plan, through
its termination,
the Company
repurchased
a total of
71,598
shares at
an aggregate
cost of approximately
$169,243,
including
commissions
and fees,
for a weighted
average price
of $2.36
per share.
On September
16, 2021,
the Board
authorized
a share repurchase
plan pursuant
to Rule 10b5-1
of the Securities
Exchange
Act of 1934
(the “2021
Repurchase
Plan”). Pursuant
to the 2021
Repurchase
Plan, we
may purchase
shares of
our Class
A Common
Stock from
time
to time for
an aggregate
purchase
price not
to exceed
$2.5 million.
Share repurchases
may be executed
through various
means, including,
without limitation,
open market
transactions.
The 2021
Repurchase
Plan does
not obligate
the Company
to purchase
any shares,
and it
expires on
September
16, 2023.
The authorization
for the 2021
Repurchase
Plan may
be terminated,
increased
or decreased
by the
Company’s Board
of Directors
in its discretion
at any time.
From the
commencement
of the 2021
Repurchase
Plan, through
December
31,
2021, we
repurchased
a total of
92,287 shares
at an aggregate
cost of approximately
$192,905,
including
commissions
and fees,
for a
weighted
average price
of $2.09
per share.
Subsequent
to December
31, 2021,
and through
March 10,
2022, the
Company repurchased
a
total of
170,422 shares
at an aggregate
cost of approximately
$343,732,
including
commissions
and fees,
for a weighted
average price
of
$2.02 per
share.
Summarized
Financial
Statements
The following
is a summarized
presentation
of the unaudited
consolidated
balance sheets
as of December
31, 2021,
and 2020,
and the
unaudited
consolidated
statements
of operations
for the calendar
quarters
and years
ended December
31, 2021
and 2020.
Amounts
presented
are subject
to change.
BIMINI CAPITAL MANAGEMENT,
INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited - Amounts Subject to Change)
December 31, 2021
December 31, 2020
ASSETS
Mortgage-backed securities
$
60,803,144
$
65,178,231
Cash equivalents and restricted cash
9,812,410
10,911,357
Investment in Orchid Island Capital, Inc.
11,679,107
13,547,764
Accrued interest receivable
229,942
202,192
Deferred tax assets, net
35,036,312
34,668,467
Other assets
4,523,726
4,192,558
Total Assets
$
122,084,641
$
128,700,569
LIABILITIES AND EQUITY
Repurchase agreements
$
58,877,999
$
65,071,113
BMNM Announces Fourth Quarter 2021 Results
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March 10, 2022
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Junior subordinated notes
27,438,976
27,612,781
Other liabilities
2,767,816
1,528,826
Total Liabilities
89,084,791
94,212,720
Stockholders' equity
32,999,850
34,487,849
Total Liabilities and
Equity
$
122,084,641
$
128,700,569
Class A Common Shares outstanding
10,702,194
11,608,555
Book value per share
$
3.08
$
2.97
BMNM Announces Fourth Quarter 2021 Results
Page 8
March 10, 2022
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BIMINI CAPITAL MANAGEMENT,
INC.
CONSOLIDATED STATEMENTS
OF OPERATIONS
(Unaudited - Amounts Subject to Change)
Years Ended
Three Months Ended
December 31,
December 31,
2021
2020
2021
2020
Advisory services
$
9,788,340
$
6,795,072
$
3,030,541
$
1,825,929
Interest and dividend income
4,261,596
5,516,733
1,017,044
1,102,658
Interest expense
(1,112,973)
(2,224,141)
(270,470)
(300,470)
Net revenues
12,936,963
10,087,664
3,777,115
2,628,117
(Losses) gains
(4,744,032)
(10,279,321)
(1,889,383)
424,608
Expenses
8,285,362
6,666,901
3,151,796
1,660,107
Net loss before income tax benefit
(92,431)
(6,858,558)
(1,264,064)
1,392,618
Income tax benefit
(367,845)
(1,369,416)
(704,234)
(10,665,275)
Net income (loss)
$
275,414
$
(5,489,142)
$
(559,830)
$
12,057,893
Basic and Diluted Net income (loss) Per Share of:
CLASS A COMMON STOCK
$
0.02
$
(0.47)
$
(0.05)
$
1.04
CLASS B COMMON STOCK
$
0.02
$
(0.47)
$
(0.05)
$
1.04
Consolidated
Three Months Ended December 31,
Key Balance Sheet Metrics
2021
2020
Average MBS
(1)
$
62,596,709
$
69,161,379
Average repurchase agreements
(1)
61,018,999
67,878,143
Average equity
(1)
32,449,980
28,458,902
Key Performance Metrics
Average yield on MBS
(2)
3.27%
3.45%
Average cost of funds
(2)
0.14%
0.25%
Average economic cost of funds
(3)
4.77%
3.88%
Average interest rate spread
(4)
3.13%
3.20%
Average economic interest rate spread
(5)
(1.50)%
(0.43)%
(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. is an
asset manager
that invests
primarily
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).
BMNM Announces Fourth Quarter 2021 Results
Page 9
March 10, 2022
-MORE-
Through our
wholly-owned
subsidiary, Bimini
Advisors Holdings,
LLC ("Bimini
Advisors"),
we serve
as the external
manager
of Orchid
Island Capital,
Inc. ("Orchid").
Orchid is
a publicly-traded
real estate
investment
trust (NYSE:
ORC).
Orchid is
managed to
earn returns
on
the spread
between the
yield on its
assets and
its costs,
including
the interest
expense on
the funds
it borrows.
As Orchid’s
external
manager, Bimini
Advisors receives
management
fees and
expense reimbursements
for managing
Orchid's investment
portfolio
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 Advisors
is at all
times subject
to the supervision
and oversight
of
Orchid's board
of directors
and has
only such
functions
and authority
as are delegated
to it.
We also manage
the portfolio
of our wholly-owned
subsidiary, Royal
Palm Capital,
LLC (“Royal
Palm”). Royal
Palm is managed
with an
investment
strategy
similar to
that of Orchid.
Bimini Capital
Management,
Inc. and
its subsidiaries
are headquartered
in Vero Beach,
Florida.
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, March 11, 2022,
at 10:00
AM ET. Participants
can receive
dial-in
information
via email
by following
the link:
https://www.incommglobalevents.com/registration/q4inc/9945/bimini-capital-fourth-quarter-
earnings-conference-call/
A live audio
webcast of
the conference
call can be
accessed
at
https://events.q4inc.com/attendee/416889295
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 approximately
one
year.
CONTACT:
Bimini Capital
Management,
Inc.
Robert E.
Cauley, 772-231-1400
Chairman
and Chief
Executive
Officer
https://ir.biminicapital.com