false 0001518621 0001518621 2025-02-12 2025-02-12
 
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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): February 12, 2025
 
Orchid Island Capital, Inc.
(Exact Name of Registrant as Specified in Charter)
 
Maryland
001-35236
27-3269228
(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:
 
Title of each class:
Trading symbol:         
Name of each exchange on which registered:
Common Stock, par value $0.01 per share
ORC
NYSE
 
Indicate by check mark whether the registrant is an emerging growth company 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 8.01. Other Events.
 
On February 12, 2025, Orchid Island Capital, Inc. (the “Company”) announced that the Board of Directors of the Company declared a dividend for the month of February 2025 of $0.12 per share of the Company’s common stock, to be paid on March 28, 2025 to holders of record on February 28, 2025, with an ex-dividend date of February 28, 2025. In addition, the Company announced certain details of its RMBS portfolio as of January 31, 2025 as well as certain other information regarding the Company. A copy of the Company’s press release announcing the dividend and the other information regarding the Company is attached hereto as Exhibit 99.1 and incorporated herein by this reference.
 
Caution About Forward-Looking Statements.
 
This Current Report on Form 8-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws, including, but not limited to, statements about the Company’s distributions. These forward-looking statements are based upon the Company’s present expectations, but the Company cannot assure investors that actual results will not vary from the expectations contained in the forward-looking statements. 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, 2023. All forward-looking statements speak only as of the date on which they are made. New risks and uncertainties arise over time, and it is not possible to predict those events or how they may affect the Company. Except as required by law, the Company is not obligated to, and does not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
 
Item 9.01. Financial Statements and Exhibits.
 
(d) Exhibits
 
Exhibit No.
  
Description
99.1
  
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: February 12, 2025
 
 ORCHID ISLAND CAPITAL, INC.
   
   
 
By:
/s/ Robert E. Cauley
   
Robert E. Cauley
   
Chairman and Chief Executive Officer
 
 

Exhibit 99.1

 

ORCHID ISLAND CAPITAL ANNOUNCES

FEBRUARY 2025 MONTHLY DIVIDEND AND

JANUARY 31, 2025 RMBS PORTFOLIO CHARACTERISTICS

 

 

●

February 2025 Monthly Dividend of $0.12 Per Share of Common Stock
 

●

RMBS Portfolio Characteristics as of January 31, 2025
 

●

Next Dividend Announcement Expected March 19, 2025

 

Vero Beach, Fla., February 12, 2025 - 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 2025. The dividend of $0.12 per share will be paid March 28, 2025 to holders of record of the Company’s common stock on February 28, 2025, with an ex-dividend date of February 28, 2025. The Company plans on announcing its next common stock dividend on March 19, 2025.

 

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 12, 2025, the Company had 93,293,628 shares of common stock outstanding. As of January 31, 2025, the Company had 90,344,128 shares of common stock outstanding, As of December 31, 2024, the Company had 82,622,464 shares of common stock outstanding.

 

RMBS Portfolio Characteristics

 

Details of the RMBS portfolio as of January 31, 2025 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, 2023.

 

 
 

 

RMBS Valuation Characteristics

  

($ in thousands)

                                                                                                
                                                                         

Realized

        
                                                                   

Realized

    

Nov-24 -

        
                                                                    Jan-25     Jan-25        
                                   

Net

                    

Weighted

    

CPR

    

CPR

        
                                    Weighted                     Average     (1-Month)     (3-Month)     Modeled Interest  
   

Current

    

Fair

    

% of

    

Current

    

Average

                    

Maturity

    

(Reported

    

(Reported

    

Rate Sensitivity (1)

  

Type

  

Face

    

Value

    

Portfolio

    

Price

    

Coupon

    

GWAC

    

Age

    

(Months)

    

in Feb)

    

in Feb)

    

(-50 BPS)

    

(+50 BPS)

  

Fixed Rate RMBS

                                                                                                

30yr 3.0

   $ 887,865     $ 768,917       13.69 %     86.60       3.00 %     3.48 %     47       306       5.8 %     6.6 %   $ 23,425     $ (23,693 )

30yr 3.5

     174,490       156,934       2.79 %     89.94       3.50 %     4.04 %     59       288       5.4 %     5.9 %     4,486       (4,521 )

30yr 4.0

     522,535       479,803       8.54 %     91.82       4.00 %     4.78 %     36       320       2.8 %     4.3 %     12,775       (13,411 )

30yr 4.5

     302,188       285,596       5.09 %     94.51       4.50 %     5.44 %     31       325       4.9 %     7.6 %     6,477       (6,945 )

30yr 5.0

     571,127       553,519       9.86 %     96.92       5.00 %     5.94 %     26       329       7.4 %     6.2 %     11,914       (12,969 )

30yr 5.5

     580,027       577,435       10.28 %     99.55       5.50 %     6.47 %     12       345       4.6 %     4.6 %     11,753       (13,147 )

30yr 6.0

     1,191,167       1,209,426       21.54 %     101.53       6.00 %     6.98 %     13       342       6.0 %     7.8 %     19,215       (22,516 )

30yr 6.5

     1,207,302       1,247,854       22.22 %     103.36       6.50 %     7.43 %     10       346       5.7 %     10.1 %     14,480       (18,205 )

30yr 7.0

     305,454       320,224       5.70 %     104.84       7.00 %     7.94 %     15       337       18.8 %     25.6 %     2,837       (3,584 )

30yr Total

     5,742,155       5,599,708       99.73 %     97.52       5.21 %     6.06 %     23       331       6.2 %     8.2 %     107,362       (118,991 )

Total Pass-Through MBS

     5,742,155       5,599,708       99.73 %     97.52       5.21 %     6.06 %     23       331       6.2 %     8.2 %     107,362       (118,991 )

Structured MBS

                                                                                                

IO 20yr 4.0

     6,870       636       0.01 %     9.27       4.00 %     4.57 %     157       77       9.2 %     9.3 %     4       (4 )

IO 30yr 3.0

     2,588       308       0.01 %     11.91       3.00 %     3.64 %     120       230       0.7 %     0.9 %     1       (2 )

IO 30yr 4.0

     70,724       13,399       0.24 %     18.95       4.00 %     4.60 %     125       226       4.7 %     5.6 %     (124 )     74  

IO 30yr 4.5

     3,092       567       0.01 %     18.34       4.50 %     4.99 %     175       171       8.3 %     8.1 %     -       (1 )

IO 30yr 5.0

     1,664       340       0.01 %     20.40       5.00 %     5.37 %     175       173       36.5 %     19.1 %     (2 )     -  

IO Total

     84,938       15,250       0.27 %     17.95       4.01 %     4.59 %     130       211       5.7 %     6.1 %     (121 )     67  

IIO 30yr 4.0

     21,763       172       0.00 %     0.79       0.00 %     4.40 %     88       260       0.5 %     0.5 %     94       (62 )

Total Structured RMBS

     106,701       15,422       0.27 %     14.45       3.19 %     4.55 %     122       221       4.6 %     5.0 %     (27 )     5  
                                                                                                 

Total Mortgage Assets

   $ 5,848,856     $ 5,615,130       100.00 %             5.17 %     6.03 %     25       329       6.2 %     8.2 %   $ 107,335     $ (118,986 )

 

       

Hedge

  

Modeled Interest

  
   

Notional

  

Period

  

Rate Sensitivity (1)

  

Hedge

  

Balance

  

End

  

(-50 BPS)

    

(+50 BPS)

  

5-Year Treasury Future(2)

   $ (277,500 )

Mar-25

   $ (5,584 )   $ 5,498  

10-Year Treasury Future(3)

   $ (193,500 )

Mar-25

   $ (6,177 )   $ 5,966  

10-Year Ultra Treasury Future(4)

   $ (117,500 )

Mar-25

   $ (5,189 )   $ 4,951  

Swaps

     (3,386,800 )

May-31

     (91,761 )     88,467  

Hedge Total

   $ (3,975,300 )     $ (108,711 )   $ 104,882  

Rate Shock Grand Total

             $ (1,376 )   $ (14,104 )

 

(1)

Modeled results from Citigroup Global Markets Inc. Yield Book. Interest rate shocks assume instantaneous parallel shifts and horizon prices are calculated assuming constant SOFR 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 $106.39 at January 31, 2025. The market value of the short position was $295.2 million.

(3)

Ten-year Treasury futures contracts were valued at prices of $108.84 at January 31, 2025. The market value of the short position was $210.6 million .
(4) Ten-year Ultra Treasury futures contracts were valued at prices of $111.38 at January 31, 2025. The market value of the short position was $130.9 million.
 
 

RMBS Assets by Agency

                

($ in thousands)

                
           

Percentage

  
   

Fair

    

of

  

Asset Category

  

Value

    

Portfolio

  

As of January 31, 2025

                

Fannie Mae

   $ 3,978,208       70.8 %

Freddie Mac

     1,636,923       29.2 %

Total Mortgage Assets

   $ 5,615,131       100.0 %

 

 

Investment Company Act of 1940 Whole Pool Test

  

($ in thousands)

                
           

Percentage

  
   

Fair

    

of

  

Asset Category

  

Value

    

Portfolio

  

As of January 31, 2025

                

Non-Whole Pool Assets

   $ 200,372       3.6 %

Whole Pool Assets

     5,414,759       96.4 %

Total Mortgage Assets

   $ 5,615,131       100.0 %

 

 

Borrowings By Counterparty

                                  

($ in thousands)

                                  
                   

Weighted

    

Weighted

    
           

% of

    

Average

    

Average

    
   

Total

    

Total

    

Repo

    

Maturity

  

Longest

As of January 31, 2025

  

Borrowings

    

Debt

    

Rate

    

in Days

  

Maturity

MUFG Securities Canada, Ltd.

   $ 336,704       6.3 %     4.42 %     16  

2/24/2025

Citigroup Global Markets Inc

     318,047       6.0 %     4.44 %     26  

2/27/2025

ABN AMRO Bank N.V.

     295,020       5.5 %     4.42 %     18  

2/18/2025

Wells Fargo Bank, N.A.

     291,347       5.5 %     4.43 %     18  

3/28/2025

Goldman, Sachs & Co

     270,979       5.1 %     4.45 %     27  

2/28/2025

Merrill Lynch, Pierce, Fenner & Smith

     270,124       5.1 %     4.45 %     21  

2/21/2025

RBC Capital Markets, LLC

     266,646       5.0 %     4.45 %     20  

2/20/2025

DV Securities, LLC Repo

     250,076       4.7 %     4.45 %     56  

3/28/2025

Cantor Fitzgerald & Co

     247,994       4.7 %     4.46 %     38  

3/10/2025

Marex Capital Markets Inc.

     242,454       4.6 %     4.43 %     48  

3/24/2025

J.P. Morgan Securities LLC

     233,790       4.4 %     4.48 %     7  

2/27/2025

South Street Securities, LLC

     228,248       4.3 %     4.45 %     35  

4/29/2025

Mirae Asset Securities (USA) Inc.

     221,243       4.2 %     4.44 %     89  

5/19/2025

Clear Street LLC

     209,391       3.9 %     4.52 %     48  

3/20/2025

ASL Capital Markets Inc.

     208,451       3.9 %     4.47 %     44  

3/21/2025

ING Financial Markets LLC

     205,471       3.9 %     4.45 %     48  

3/20/2025

Mitsubishi UFJ Securities (USA), Inc.

     201,481       3.8 %     4.49 %     13  

2/18/2025

Daiwa Securities America Inc.

     199,237       3.7 %     4.45 %     24  

2/24/2025

StoneX Financial Inc.

     197,637       3.7 %     4.44 %     48  

3/28/2025

The Bank of Nova Scotia

     192,152       3.6 %     4.45 %     49  

3/21/2025

Bank of Montreal

     189,078       3.6 %     4.45 %     24  

2/24/2025

Banco Santander SA

     141,954       2.7 %     4.44 %     18  

2/18/2025

Nomura Securities International, Inc.

     70,278       1.3 %     4.45 %     18  

2/18/2025

Lucid Prime Fund, LLC

     28,789       0.5 %     4.46 %     13  

2/13/2025

Total Borrowings

   $ 5,316,591       100.0 %     4.45 %     32  

5/19/2025

 

Contact:

 

Orchid Island Capital, Inc.

Robert E. Cauley

3305 Flamingo Drive, Vero Beach, Florida 32963

Telephone: (772) 231-1400

 

 
v3.25.0.1
Document And Entity Information
Feb. 12, 2025
Document Information [Line Items]  
Entity, Registrant Name Orchid Island Capital, Inc.
Document, Type 8-K
Document, Period End Date Feb. 12, 2025
Entity, Incorporation, State or Country Code MD
Entity, File Number 001-35236
Entity, Tax Identification Number 27-3269228
Entity, Address, Address Line One 3305 Flamingo Drive
Entity, Address, City or Town Vero Beach
Entity, Address, State or Province FL
Entity, Address, Postal Zip Code 32963
City Area Code 772
Local Phone Number 231-1400
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock
Trading Symbol ORC
Security Exchange Name NYSE
Entity, Emerging Growth Company false
Amendment Flag false
Entity, Central Index Key 0001518621
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