First Quarter 2026 Highlights
Net income of approximately $0.8 million, or $0.08 per common share, compared to net income of approximately $0.6 million, or $0.06 per common share, in the first quarter of 2025
Book value per share of $1.34 at March 31, 2026, compared to $1.26 at December 31, 2025
Company to discuss results on Friday, May 8, 2026, at 10:00 AM ET
Management Commentary
Commenting on the first quarter results, Robert E. Cauley, Chairman and Chief Executive Officer of Bimini, said, "On April 1, 2026, Bimini Advisors Holdings, LLC, the parent of our registered investment advisor, Bimini Advisors, LLC completed the acquisition of eighty percent (80%) of the fully diluted equity interests of Tom Johnson Investment Management, LLC ("TJIM"), a privately held registered investment adviser. TJIM manages approximately $1.6 billion of assets under management across equity and fixed income markets. TJIM's management agreements are diverse, covering individual accounts, sub-advisory agreements, and wrap programs. The existing owner of TJIM is retaining an ownership interest in TJIM and Bimini will be retaining its current staff and investment management team. As we stated when we announced the transaction in January, the purpose of the transaction is to both expand and diversify Bimini's advisory services segment. The Company has generated sufficient excess cash flows in recent periods such that it was not necessary to liquidate its entire Agency RMBS portfolio or any of its shares of Orchid Island to fund the transaction. Accordingly, we will continue to operate an Agency RMBS portfolio, although the leverage employed will be lower than was typically the case prior to the acquisition.
"Regarding our results for the quarter, uneven market conditions for the Agency RMBS market caused Orchid Island Capital, Inc. ("Orchid") and Bimini's investment portfolio segment to report modest losses for the quarter. Orchid reported a net loss of $20.2 million or $0.11 per share for the first quarter of 2026. Bimini's investment portfolio segment generated a net loss of $0.7 million for the first quarter of 2026. Orchid was able to continue to expand its equity base however and its stockholders' equity increased from $1.372 billion at December 31, 2025, to $1.392 billion at March 31, 2026. As a result, Bimini's advisory service revenues also increased to $5.1 million compared to $4.7 million for the fourth quarter of 2025. The advisory service segment generated net income for the first quarter of $2.25 million and Bimini's consolidated net income for the first quarter was $0.8 million or $0.08 per share. We look forward to discussing TJIM's results for the second quarter of 2026 as part of quarterly earnings discussion next quarter.
"Finally, regarding market conditions during the first quarter of 2026 the fixed income markets experienced a period of calm as 2025 came to close and we entered 2026. Interest rates have remained in a very tight range, implied interest rate volatility has continued the steady decline that began in April of 2025, and Agency RMBS performed well during the first two months of the first quarter of 2026. Other sectors of the fixed income markets performed well over this period as well, and spreads on investment grade corporate bonds reached levels not seen since 1998. As 2026 began, economic activity remained resilient, including the labor market. However, the outlook has since changed after war broke out in the Middle East - the world's most critical oil and chemical supply region suffered intense military attacks leading to supply interruptions. Inflation, which was already sticky, may move even higher and the economic outlook has become very uncertain as the effect of the war on growth, both in the US and globally, has deteriorated. The ultimate outcome of the war remains uncertain nor is the end in sight at this moment. To date the economy in the US has remained resilient but there is still uncertainty if it can continue to do so."
Details of First Quarter 2026 Results of Operations
Bimini reported net income of approximately $0.8 million, or $0.08 per common share, compared to net income of approximately $0.6 million, or $0.06 per common share, in the first quarter of 2025. Bimini's advisory service revenues of approximately $5.1 million represented a 9% increase over the fourth quarter of 2025 and a 43% increase over the first quarter of 2024. This was a result of an increase in stockholders' equity of Orchid Island Capital, Inc. ("Orchid"), from $855.9 million at March 31, 2025 to $1.4 billion at December 31, 2025 and $1.4 billion at March 31, 2026.
Interest revenue from our mortgage-backed securities ("MBS") portfolio decreased 20% from the fourth quarter of 2025 and 33% from the first quarter of 2025 as the Company liquidated most of its portfolio during the quarter to fund the acquisition of an 80% interest in Tom Johnson Investment Management, LLC ("TJIM"), a registered investment advisor, which was completed on April 1. Repurchase agreement funding costs in the first quarter of 2026 decreased by 32% compared to the fourth quarter of 2025 and by 47% compared to the first quarter of 2025. Despite the smaller ending portfolio, net interest income, inclusive of dividends from holdings of Orchid common shares, increased by approximately 6% from the fourth quarter of 2025 and 5% from the first quarter of 2025 due to the timing of asset sales toward the end of the quarter and lower funding rates of our repurchase agreement portfolio. These amounts represent net interest income from the investment portfolio and do not include interest charges on our trust preferred or other long-term debt.
Interest charges on the trust preferred and other long-term debt of $0.50 million were down from $0.51 in the fourth quarter of 2025 and down from $0.54 million from the first quarter of 2025. Expenses of $3.7 million were down by 4% from the fourth quarter of 2025 and up by 27% compared to the first quarter of 2025. The increase in expenses over the first quarter of 2025 was due to the approximately $0.6 million in TJIM acquisition costs incurred in the current period. Bimini recorded an income tax provision of $0.2 million for the first quarter of 2026.
Management of Orchid Island Capital, Inc.
Orchid is managed and advised by Bimini's subsidiary, Bimini Advisors, LLC ("Bimini Advisors"). As manager, Bimini Advisors is responsible for administering Orchid's business activities and day-to-day operations. Pursuant to the terms of a 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 March 31, 2026, Bimini's statement of operations included dividends of $0.2 million from its investment in Orchid common stock. Also, during the three months ended March 31, 2026, Bimini recorded $5.1 million in advisory services revenue for managing Orchid's portfolio, consisting of $4.0 million of management fees, $0.8 million in overhead reimbursement, and $0.3 million in repurchase, clearing and administrative fees.
Book Value Per Share
The Company's book value per share on March 31, 2026 was $1.34. The Company computes book value per share by dividing total stockholders' equity by the total number of outstanding shares of the Company's Class A Common Stock. At March 31, 2026, the Company's stockholders' equity was $13.4 million, with 10,005,457 Class A Common shares outstanding.
Portfolio
The following tables summarize the MBS portfolio as of March 31, 2026 and December 31, 2025:
($ in thousands)
Weighted
Average
Weighted
Maturity
Fair
Average
in
Longest
Value
Coupon
Months
Maturity
March 31, 2026
$
16,066
5.35
%
322
1-May-53
December 31, 2025
$
88,929
5.73
%
331
1-Aug-54
($ in thousands)
March 31, 2026
December 31, 2025
Percentage of
Percentage of
Agency
Fair Value
Entire Portfolio
Fair Value
Entire Portfolio
Fannie Mae
$
2,305
14.3
%
