001-32171 Bimini Capital Management, Inc. (Exact name of registrant as specified in its charter) Maryland 72-1571637 | |||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of Each Class Class A Common Stock, $0.001 par value |
Title of each Class | Shares held by non-affiliates | Aggregate market value held by non-affiliates | ||||||
Class A Common Stock, $0.001 par value | 8,673,781 | $ | 24,300,000 | (a) | ||||
Class B Common Stock, $0.001 par value | 20,760 | $ | 1,000 | (b) | ||||
Class C Common Stock, $0.001 par value | 31,938 | $ | 1,500 | (b) |
Title of each Class Latest Practicable Date Shares Outstanding Class A Common Stock, $0.001 par value March 11, 2022 10,531,772 Class B Common Stock, $0.001 par value March 11, 2022 31,938 Class C Common Stock, $0.001 par value March 11, 2022 31,938 | |||||
our business and investment strategy; |
● One-twelfth of 1.00% of the Orchid’s equity that is greater than $500 million. |
- 3 - ● Fixed-Rate Mortgages . Fixed-rate mortgages are those where the borrower pays an interest rate thatis constant throughout the term of the loan. Traditionally, most fixed-rate mortgages have an original term of 30 years. However, shorter terms (also market interest rates change, there can be a divergence between the interest rate onthe loan and current market interest rates over time. This in turn can make fixed-rate mortgages price-sensitive to marketfluctuations in interest rates. In general, the longer the remaining term on the mortgage loan, the greater the pricesensitivity to movements in interest rates and, therefore, the likelihood for greater price variability. ● ARMs . ARMs are mortgages for which the borrower pays an interest rate that variesover the term of the loan. The interest rate usually resets based on market interest rates, although the adjustment ofsuch an interest rate may be subject to certain limitations. Traditionally, interest rate resets occur at regular intervals (for example, once per year). We refer to such ARMs as “traditional” ARMs. Because the interest rates on ARMs fluctuate based on marketconditions, ARMs tend to have interest rates that do not deviate from current market rates by a large amount. This in turncan mean that ARMs have less price sensitivity to interest rates and, consequently, are less likely to experience significant price volatility. ● Hybrid Adjustable-Rate Mortgages . Hybrid ARMs have a fixed-rate for the first few years of the loan, oftenthree, five, seven or ten years, and thereafter reset periodically like a traditional ARM. Effectively, such mortgages are hybrids, combining the features of a pure fixed-rate mortgage and a traditional ARM. Hybrid ARMs haveprice sensitivity to interest rates similar to that of a fixed-rate mortgage during the period when the interest rate is fixedand similar to that of an ARM when the interest rate is in its periodic reset stage. However, because many hybrid ARMs are structured with a relatively shortinitial time span during which the interest rate is fixed, even during that segment of its existence,the price sensitivity may be high. Collateralized Mortgage Obligation MBS CMOs are a type of MBS the principal and interest of which are paid, in mostcases, on a monthly basis. CMOs may be collateralized by whole mortgage loans, but are more typically collateralized by pools of mortgagepass-through securities issued directly by or under the auspices of Ginnie Mae, Freddie Mac or Fannie Mae. CMOs are structuredinto multiple classes, with each class bearing a different stated maturity. Monthly payments of principal, including prepayments, are first returned to investors holding the shortest maturity class. Investors holding the longer maturity classes receive principal onlyafter the first class has been retired. Generally,fixed-rate MBS are used to collateralize CMOs. However, the CMO tranches need not all have fixed-rate coupons. Some CMO tranches have floating rate coupons that adjust based on market interest rates, subject to somelimitations. Such tranches, often called “CMO floaters,” can have relatively low price sensitivity to interest rates. |
. IOs represent the stream of interest payments on a pool of mortgages,either fixed-rate mortgages or hybrid ARMs. Holders of IOs have no claim to any principal payments. The value of IOs dependsprimarily on two factors, which are prepayments and interest rates. Prepayments on the underlying pool of mortgagesreduce the stream of interest payments going forward, hence IOs are highly sensitive to prepayment rates. IOs arealso sensitive to changes in interest rates. An increase in interest rates has a tendency to reduce prepayments, which increasesthe expected absolute amount of future interest payments. ● IIOs . IIOs represent the stream of interest payments on a pool of mortgages thatunderlie MBS, either fixed-rate mortgages or hybrid ARMs. Holders of IIOs have no claim to any principal payments. Thevalue of IIOs depends primarily on three factors, |
be unencumbered or, when encumbered, the cash from such borrowings may be retained and (iii) diversify portfoliointerest rate risk due to the different interest rate sensitivity these securities have compared to pass-throughAgency MBS; ● investing in Agency MBS in order to minimize credit risk; ● investing in REIT common stock, including Orchid; ● investing in assets that will cause us to maintain our exclusion from regulationas an investment company under the Investment Company Act. |
The relative durations of the respective portfolios — We generally seek to have a combinedhedged duration at or near zero. If |
● The relative attractiveness of pass-through securities versus structured securities — To the extent we believe the expected returns of one type of security are higher than the other, we will allocate more capital to the more attractivesecurities, subject to the caveat that its combined duration remains at or near zero and subject tomaintaining our qualification for exemption under the Investment Company Act. ● Liquidity — We seek to maintain adequate cash and unencumbered securities relativeto our repurchase agreement borrowings well in excess of anticipated price or prepayment related margincalls from our lenders. To the extent we feel price or prepayment related margin calls will be higher/lower, we will typically allocate less/more capital to the pass-throughAgency MBS portfolio. Our pass-through Agency MBS portfolio likely will beour only source of price or prepayment related margin calls because we generally will not apply leverage to our structured AgencyMBS portfolio. From time to time we may pledge a portion of our structured securities and retain the cash derived so it can be usedto enhance our liquidity. |
Agency MBS. |
● certain types of hedges may expose us to risk of loss beyond the feepaid to initiate the hedge; ● the credit quality of the counterparty on the hedge may be downgraded tosuch an extent that it impairs our ability to sell or assign our side of the hedging transaction; and ● the counterparty in the hedging transaction may default on its obligation to pay. |
actual receipt of an improper benefit or profit in money, property or services; or |
● the ability of any holder to sell shares of our common stock; or ● the prices that may be obtained for our common stock. |
changes in market valuations of similar companies; ● adverse market reaction to any increased indebtedness we incur in the future; ● departures of key management personnel; ● actions by institutional stockholders; ● speculation in the press or investment community; and - 32 - ● general market and economic conditions. |
High | Low | Close | Dividends Declared | |||||||||||||
2017 | ||||||||||||||||
First quarter | $ | 3.00 | $ | 2.41 | $ | 2.65 | $ | - | ||||||||
Second quarter | 3.00 | 2.55 | 2.80 | - | ||||||||||||
Third quarter | 2.95 | 2.60 | 2.79 | - | ||||||||||||
Fourth quarter | 2.79 | 2.54 | 2.61 | - | ||||||||||||
2016 | . | |||||||||||||||
First quarter | $ | 1.88 | $ | 0.59 | $ | 1.64 | $ | - | ||||||||
Second quarter | 1.74 | 1.07 | 1.38 | - | ||||||||||||
Third quarter | 2.70 | 1.26 | 2.50 | - | ||||||||||||
Fourth quarter | 2.70 | 1.69 | 2.62 | - |
�� | Number of securities | |||||||||||
remaining available for | ||||||||||||
Total number of securities | Weighted-average | future issuance under | ||||||||||
to be issued upon exercise | exercise price of | equity compensation plans | ||||||||||
of outstanding options, | of outstanding options, | (excluding securities | ||||||||||
warrants and rights | warrants and rights | reflected in column (a)) | ||||||||||
Plan Category | (a) | (b) | ||||||||||
Equity compensation plans approved by | ||||||||||||
by security holders | 41,000 | - | 2,621,667 | (2) | ||||||||
Equity compensation plans not approved | ||||||||||||
by security holders(1) | - | - | - | |||||||||
Total | 41,000 | - | 2,621,667 |
interest rate trends; |
● competition for, and supply of, investments in Agency MBS; ● actions taken by the U.S. government, including the presidential administration,the U.S. Federal Reserve (the “Fed”), the Federal Open Market Committee (the “FOMC”), The Federal Housing FinanceAgency (the “FHFA”) and the U.S. Treasury; ● prepayment rates on mortgages underlying our Agency MBS, and credit trendsinsofar as they affect prepayment rates; ● the equity markets and the ability of Orchid to raise additional capital; ● geo-political events that affect the U.S. and international economies, such as the current crisisin Ukraine; and ● other market developments. |
our degree of leverage; |
(in thousands) | ||||||||||||
2017 | 2016 | Change | ||||||||||
Revenues | $ | 16,004 | $ | 12,067 | $ | 3,937 | ||||||
Interest expense | (3,033 | ) | (1,856 | ) | (1,177 | ) | ||||||
Net revenues | 12,971 | 10,211 | 2,760 | |||||||||
Other (expense) income | (3,673 | ) | 60 | (3,733 | ) | |||||||
Expenses | (6,403 | ) | (5,743 | ) | (660 | ) | ||||||
Net income before income tax provision | 2,895 | 4,528 | (1,633 | ) | ||||||||
Income tax provision | 19,378 | 1,142 | 18,236 | |||||||||
Net (loss) income | $ | (16,483 | ) | $ | 3,386 | $ | (19,869 | ) |
Gains (Losses) on Derivative Instruments - Recognized in Consolidated Statement of Operations (GAAP) | ||||||||||||
(in thousands) | ||||||||||||
Junior | ||||||||||||
Repurchase | Subordinated | |||||||||||
Three Months Ended | Agreements | Debt | Total | |||||||||
December 31, 2017 | $ | 546 | $ | 237 | $ | 783 | ||||||
September 30, 2017 | (13 | ) | (6 | ) | (19 | ) | ||||||
June 30, 2017 | (581 | ) | (251 | ) | (832 | ) | ||||||
March 31, 2017 | 15 | 7 | 22 | |||||||||
December 31, 2016 | 496 | 1,037 | 1,533 | |||||||||
September 30, 2016 | 326 | 182 | 508 | |||||||||
June 30, 2016 | (353 | ) | (404 | ) | (757 | ) | ||||||
March 31, 2016 | (787 | ) | (513 | ) | (1,300 | ) | ||||||
(in thousands) | ||||||||||||
Junior | ||||||||||||
Repurchase | Subordinated | |||||||||||
Years Ended | Agreements | Debt | Total | |||||||||
December 31, 2017 | $ | (33 | ) | $ | (13 | ) | $ | (46 | ) | |||
December 31, 2016 | (318 | ) | 302 | (16 | ) |
Losses on Derivative Instruments - Attributed to Current Period (Non-GAAP) | ||||||||||||
(in thousands) | ||||||||||||
Junior | ||||||||||||
Repurchase | Subordinated | |||||||||||
Three Months Ended | Agreements | Debt | Total | |||||||||
December 31, 2017 | $ | (170 | ) | $ | (42 | ) | $ | (212 | ) | |||
September 30, 2017 | (162 | ) | (40 | ) | (202 | ) | ||||||
June 30, 2017 | (152 | ) | (37 | ) | (189 | ) | ||||||
March 31, 2017 | (116 | ) | (60 | ) | (176 | ) | ||||||
December 31, 2016 | (122 | ) | (57 | ) | (179 | ) | ||||||
September 30, 2016 | (93 | ) | (55 | ) | (148 | ) | ||||||
June 30, 2016 | (60 | ) | (77 | ) | (137 | ) | ||||||
March 31, 2016 | (45 | ) | (80 | ) | (125 | ) | ||||||
(in thousands) | ||||||||||||
Junior | ||||||||||||
Repurchase | Subordinated | |||||||||||
Years Ended | Agreements | Debt | Total | |||||||||
December 31, 2017 | $ | (600 | ) | $ | (179 | ) | $ | (779 | ) | |||
December 31, 2016 | (320 | ) | (269 | ) | (589 | ) |
Gains (Losses) on Derivative Instruments - Attributed to Future Periods (Non-GAAP) | ||||||||||||
(in thousands) | ||||||||||||
Junior | ||||||||||||
Repurchase | Subordinated | |||||||||||
Three Months Ended | Agreements | Debt | Total | |||||||||
December 31, 2017 | $ | 716 | $ | 279 | $ | 995 | ||||||
September 30, 2017 | 149 | 34 | 183 | |||||||||
June 30, 2017 | (429 | ) | (214 | ) | (643 | ) | ||||||
March 31, 2017 | 131 | 67 | 198 | |||||||||
December 31, 2016 | 618 | 1,094 | 1,712 | |||||||||
September 30, 2016 | 419 | 237 | 656 | |||||||||
June 30, 2016 | (293 | ) | (327 | ) | (620 | ) | ||||||
March 31, 2016 | (742 | ) | (433 | ) | (1,175 | ) | ||||||
(in thousands) | ||||||||||||
Junior | ||||||||||||
Repurchase | Subordinated | |||||||||||
Years Ended | Agreements | Debt | Total | |||||||||
December 31, 2017 | $ | 567 | $ | 166 | $ | 733 | ||||||
December 31, 2016 | 2 | 571 | 573 |
Economic Net Portfolio Interest Income | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Interest Expense on Repurchase Agreements | Net Portfolio | |||||||||||||||||||||||
Effect of | Interest Income | |||||||||||||||||||||||
Interest | GAAP | Non-GAAP | Economic | GAAP | Economic | |||||||||||||||||||
Three Months Ended | Income | Basis | Hedges(1) | Basis(2) | Basis | Basis(3) | ||||||||||||||||||
December 31, 2017 | $ | 1,978 | $ | 685 | $ | (170 | ) | $ | 855 | $ | 1,293 | $ | 1,123 | |||||||||||
September 30, 2017 | 1,514 | 504 | (162 | ) | 666 | 1,010 | 848 | |||||||||||||||||
June 30, 2017 | 1,269 | 324 | (152 | ) | 476 | 945 | 793 | |||||||||||||||||
March 31, 2017 | 1,293 | 283 | (116 | ) | 399 | 1,010 | 894 | |||||||||||||||||
December 31, 2016 | 1,285 | 251 | (122 | ) | 373 | 1,034 | 912 | |||||||||||||||||
September 30, 2016 | 1,108 | 195 | (92 | ) | 287 | 913 | 821 | |||||||||||||||||
June 30, 2016 | 1,025 | 174 | (60 | ) | 234 | 851 | 791 | |||||||||||||||||
March 31, 2016 | 817 | 127 | (45 | ) | 172 | 690 | 645 | |||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Interest Expense on Repurchase Agreements | Net Portfolio | |||||||||||||||||||||||
Effect of | Interest Income | |||||||||||||||||||||||
Interest | GAAP | Non-GAAP | Economic | GAAP | Economic | |||||||||||||||||||
Years Ended | Income | Basis | Hedges(1) | Basis(2) | Basis | Basis(3) | ||||||||||||||||||
December 31, 2017 | $ | 6,054 | $ | 1,796 | $ | (600 | ) | $ | 2,396 | $ | 4,258 | $ | 3,658 | |||||||||||
December 31, 2016 | 4,235 | 747 | (319 | ) | 1,066 | 3,488 | 3,169 |
Economic Net Interest Income | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Net Portfolio | Interest Expense on Junior Subordinated Notes | |||||||||||||||||||||||||||
Interest Income | Effect of | Net Interest Income | ||||||||||||||||||||||||||
GAAP | Economic | GAAP | Non-GAAP | Economic | GAAP | Economic | ||||||||||||||||||||||
Three Months Ended | Basis | Basis(1) | Basis | Hedges(2) | Basis(3) | Basis | Basis(4) | |||||||||||||||||||||
December 31, 2017 | $ | 1,293 | $ | 1,123 | $ | 324 | $ | (42 | ) | $ | 366 | $ | 969 | $ | 757 | |||||||||||||
September 30, 2017 | 1,010 | 848 | 316 | (40 | ) | 356 | 694 | 492 | ||||||||||||||||||||
June 30, 2017 | 945 | 793 | 306 | (37 | ) | 343 | 639 | 450 | ||||||||||||||||||||
March 31, 2017 | 1,010 | 894 | 292 | (60 | ) | 352 | 718 | 542 | ||||||||||||||||||||
December 31, 2016 | 1,034 | 912 | 291 | (57 | ) | 348 | 743 | 564 | ||||||||||||||||||||
September 30, 2016 | 913 | 821 | 278 | (55 | ) | 333 | 635 | 488 | ||||||||||||||||||||
June 30, 2016 | 851 | 791 | 276 | (77 | ) | 353 | 575 | 438 | ||||||||||||||||||||
March 31, 2016 | 690 | 645 | 264 | (80 | ) | 344 | 426 | 301 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Net Portfolio | Interest Expense on Junior Subordinated Notes | |||||||||||||||||||||||||||
Interest Income | Effect of | Net Interest Income | ||||||||||||||||||||||||||
GAAP | Economic | GAAP | Non-GAAP | Economic | GAAP | Economic | ||||||||||||||||||||||
Years Ended | Basis | Basis(1) | Basis | Hedges(2) | Basis(3) | Basis | Basis(4) | |||||||||||||||||||||
December 31, 2017 | $ | 4,258 | $ | 3,658 | $ | 1,238 | $ | (179 | ) | $ | 1,417 | $ | 3,020 | $ | 2,241 | |||||||||||||
December 31, 2016 | 3,488 | 3,169 | 1,109 | (269 | ) | 1,378 | 2,379 | 1,791 |
(in thousands) | ||||||||||||||||||||
Asset | Investment | |||||||||||||||||||
Management | Portfolio | Corporate | Eliminations | Total | ||||||||||||||||
2017 | ||||||||||||||||||||
Advisory services, external customers | $ | 7,431 | $ | - | $ | - | $ | - | $ | 7,431 | ||||||||||
Advisory services, other operating segments(1) | 207 | - | - | (207 | ) | - | ||||||||||||||
Interest and dividend income | - | 8,572 | 1 | - | 8,573 | |||||||||||||||
Interest expense | - | (1,796 | ) | (1,237 | )(2) | - | (3,033 | ) | ||||||||||||
Net revenues | 7,638 | 6,776 | (1,236 | ) | (207 | ) | 12,971 | |||||||||||||
Other income | - | (4,306 | ) | 634 | (3) | - | (3,672 | ) | ||||||||||||
Operating expenses(4) | (3,016 | ) | (3,387 | ) | - | - | (6,403 | ) | ||||||||||||
Intercompany expenses(1) | - | (207 | ) | - | 207 | - | ||||||||||||||
Income (loss) before income taxes | $ | 4,622 | $ | (1,124 | ) | $ | (602 | ) | $ | - | $ | 2,896 | ||||||||
Assets | $ | 1,632 | $ | 267,429 | $ | 15,528 | $ | - | $ | 284,589 |
Asset | Investment | |||||||||||||||||||
Management | Portfolio | Corporate | Eliminations | Total | ||||||||||||||||
2016 | ||||||||||||||||||||
Advisory services, external customers | $ | 5,489 | $ | - | $ | - | $ | - | $ | 5,489 | ||||||||||
Advisory services, other operating segments(1) | 94 | - | - | (94 | ) | - | ||||||||||||||
Interest and dividend income | - | 6,576 | 2 | - | 6,578 | |||||||||||||||
Interest expense | - | (747 | ) | (1,109 | )(2) | - | (1,856 | ) | ||||||||||||
Net revenues | 5,583 | 5,829 | (1,107 | ) | (94 | ) | 10,211 | |||||||||||||
Other income | - | (2,675 | ) | 2,735 | (3) | - | 60 | |||||||||||||
Operating expenses(4) | (2,640 | ) | (3,103 | ) | - | - | (5,743 | ) | ||||||||||||
Intercompany expenses(1) | - | (94 | ) | - | 94 | - | ||||||||||||||
Income (loss) before income taxes | $ | 2,943 | $ | (43 | ) | $ | 1,628 | $ | - | $ | 4,528 | |||||||||
Assets | $ | 1,856 | $ | 199,883 | $ | 21,131 | $ | - | $ | 222,870 |
● One-twelfth of 1.00% of Orchid’s month-end equity that is greater than $500 million. |
($ in thousands) | ||||||||||||||||||||
Average | Average | Advisory Services | ||||||||||||||||||
Orchid | Orchid | Management | Overhead | |||||||||||||||||
Three Months Ended | MBS | Equity | Fee | Allocation | Total | |||||||||||||||
December 31, 2017 | $ | 3,837,575 | $ | 459,322 | $ | 1,625 | $ | 408 | $ | 2,033 | ||||||||||
September 30, 2017 | 3,834,083 | 441,193 | 1,528 | 412 | 1,940 | |||||||||||||||
June 30, 2017 | 3,499,922 | 406,395 | 1,400 | 388 | 1,788 | |||||||||||||||
March 31, 2017 | 3,142,095 | 371,691 | 1,302 | 368 | 1,670 | |||||||||||||||
December 31, 2016 | 2,761,836 | 341,236 | 1,220 | 338 | 1,558 | |||||||||||||||
September 30, 2016 | 2,362,377 | 280,421 | 1,052 | 336 | 1,388 | |||||||||||||||
June 30, 2016 | 2,100,151 | 251,648 | 945 | 329 | 1,274 | |||||||||||||||
March 31, 2016 | 2,067,527 | 266,806 | 971 | 298 | 1,269 | |||||||||||||||
($ in thousands) | ||||||||||||||||||||
Average | Average | Advisory Services | ||||||||||||||||||
Orchid | Orchid | Management | Overhead | |||||||||||||||||
Years Ended | MBS | Equity | Fee | Allocation | Total | |||||||||||||||
December 31, 2017 | $ | 3,578,419 | $ | 419,650 | $ | 5,855 | $ | 1,576 | $ | 7,431 | ||||||||||
December 31, 2016 | 2,322,973 | 285,028 | 4,188 | 1,301 | 5,489 |
($ in thousands) | ||||||||||||||||||||||||||||||||
Average | Yield on | Average | Interest Expense | Average Cost of Funds | ||||||||||||||||||||||||||||
MBS | Interest | Average | Repurchase | GAAP | Economic | GAAP | Economic | |||||||||||||||||||||||||
Three Months Ended | Held(1) | Income(2) | MBS | Agreements(1) | Basis | Basis(2) | Basis | Basis(3) | ||||||||||||||||||||||||
December 31, 2017 | $ | 203,841 | $ | 1,978 | 3.88 | % | $ | 193,778 | $ | 685 | $ | 855 | 1.41 | % | 1.77 | % | ||||||||||||||||
September 30, 2017 | 170,237 | 1,514 | 3.56 | % | 161,003 | 504 | 666 | 1.25 | % | 1.66 | % | |||||||||||||||||||||
June 30, 2017 | 134,188 | 1,269 | 3.78 | % | 126,341 | 324 | 476 | 1.02 | % | 1.51 | % | |||||||||||||||||||||
March 31, 2017 | 128,098 | 1,293 | 4.04 | % | 119,938 | 283 | 398 | 0.94 | % | 1.33 | % | |||||||||||||||||||||
December 31, 2016 | 131,952 | 1,285 | 3.89 | % | 123,909 | 251 | 373 | 0.81 | % | 1.20 | % | |||||||||||||||||||||
September 30, 2016 | 122,220 | 1,108 | 3.63 | % | 114,858 | 195 | 287 | 0.68 | % | 1.00 | % | |||||||||||||||||||||
June 30, 2016 | 110,017 | 1,025 | 3.73 | % | 103,259 | 174 | 234 | 0.67 | % | 0.91 | % | |||||||||||||||||||||
March 31, 2016 | 96,592 | 817 | 3.39 | % | 90,014 | 127 | 173 | 0.57 | % | 0.77 | % | |||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||||
Average | Yield on | Average | Interest Expense | Average Cost of Funds | ||||||||||||||||||||||||||||
MBS | Interest | Average | Repurchase | GAAP | Economic | GAAP | Economic | |||||||||||||||||||||||||
Years Ended | Held(1) | Income(2) | MBS | Agreements(1) | Basis | Basis(2) | Basis | Basis(3) | ||||||||||||||||||||||||
December 31, 2017 | $ | 159,091 | $ | 6,054 | 3.81 | % | $ | 150,265 | $ | 1,796 | $ | 2,395 | 1.20 | % | 1.59 | % | ||||||||||||||||
December 31, 2016 | 115,195 | 4,235 | 3.68 | % | 108,010 | 747 | 1,067 | 0.69 | % | 0.99 | % |
($ in thousands) | ||||||||||||||||
Net Portfolio | Net Portfolio | |||||||||||||||
Interest Income | Interest Spread | |||||||||||||||
GAAP | Economic | GAAP | Economic | |||||||||||||
Three Months Ended | Basis | Basis(2) | Basis | Basis(4) | ||||||||||||
December 31, 2017 | $ | 1,293 | $ | 1,123 | 2.47 | % | 2.11 | % | ||||||||
September 30, 2017 | 1,010 | 848 | 2.31 | % | 1.90 | % | ||||||||||
June 30, 2017 | 945 | 793 | 2.76 | % | 2.27 | % | ||||||||||
March 31, 2017 | 1,010 | 894 | 3.10 | % | 2.71 | % | ||||||||||
December 31, 2016 | 1,034 | 912 | 3.08 | % | 2.69 | % | ||||||||||
September 30, 2016 | 913 | 821 | 2.95 | % | 2.63 | % | ||||||||||
June 30, 2016 | 851 | 791 | 3.06 | % | 2.82 | % | ||||||||||
March 31, 2016 | 690 | 644 | 2.82 | % | 2.62 | % | ||||||||||
($ in thousands) | ||||||||||||||||
Net Portfolio | Net Portfolio | |||||||||||||||
Interest Income | Interest Spread | |||||||||||||||
GAAP | Economic | GAAP | Economic | |||||||||||||
Years Ended | Basis | Basis(2) | Basis | Basis(4) | ||||||||||||
December 31, 2017 | $ | 4,258 | $ | 3,658 | 2.61 | % | 2.22 | % | ||||||||
December 31, 2016 | 3,488 | 3,168 | 2.99 | % | 2.69 | % |
($ in thousands) | ||||||||||||||||||||||||||||||||||||
Average MBS Held | Interest Income | Realized Yield on Average MBS | ||||||||||||||||||||||||||||||||||
PT | Structured | PT | Structured | PT | Structured | |||||||||||||||||||||||||||||||
Three Months Ended | MBS | MBS | Total | MBS | MBS | Total | MBS | MBS | Total | |||||||||||||||||||||||||||
December 31, 2017 | $ | 201,165 | $ | 2,676 | $ | 203,841 | $ | 1,955 | $ | 23 | $ | 1,978 | 3.89 | % | 3.55 | % | 3.88 | % | ||||||||||||||||||
September 30, 2017 | 167,081 | 3,156 | 170,237 | 1,524 | (10 | ) | 1,514 | 3.65 | % | (1.28 | )% | 3.56 | % | |||||||||||||||||||||||
June 30, 2017 | 130,519 | 3,669 | 134,188 | 1,220 | 49 | 1,269 | 3.74 | % | 5.33 | % | 3.78 | % | ||||||||||||||||||||||||
March 31, 2017 | 123,163 | 4,935 | 128,098 | 1,210 | 83 | 1,293 | 3.93 | % | 6.67 | % | 4.04 | % | ||||||||||||||||||||||||
December 31, 2016 | 127,627 | 4,325 | 131,952 | 1,238 | 47 | 1,285 | 3.88 | % | 4.32 | % | 3.89 | % | ||||||||||||||||||||||||
September 30, 2016 | 119,411 | 2,809 | 122,220 | 1,092 | 16 | 1,108 | 3.66 | % | 2.19 | % | 3.63 | % | ||||||||||||||||||||||||
June 30, 2016 | 106,653 | 3,364 | 110,017 | 1,008 | 17 | 1,025 | 3.78 | % | 2.05 | % | 3.73 | % | ||||||||||||||||||||||||
March 31, 2016 | 92,365 | 4,227 | 96,592 | 783 | 34 | 817 | 3.39 | % | 3.25 | % | 3.39 | % | ||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||||||||
Average MBS Held | Interest Income | Realized Yield on Average MBS | ||||||||||||||||||||||||||||||||||
PT | Structured | PT | Structured | PT | Structured | |||||||||||||||||||||||||||||||
Years Ended | MBS | MBS | Total | MBS | MBS | Total | MBS | MBS | Total | |||||||||||||||||||||||||||
December 31, 2017 | $ | 155,482 | $ | 3,609 | $ | 159,091 | $ | 5,909 | $ | 145 | $ | 6,054 | 3.80 | % | 4.01 | % | 3.81 | % | ||||||||||||||||||
December 31, 2016 | 111,514 | 3,681 | 115,195 | 4,121 | 114 | 4,235 | 3.70 | % | 3.09 | % | 3.68 | % |
($ in thousands) | ||||||||||||||||||||
Average | ||||||||||||||||||||
Balance of | Interest Expense | Average Cost of Funds | ||||||||||||||||||
Repurchase | GAAP | Economic | GAAP | Economic | ||||||||||||||||
Three Months Ended | Agreements | Basis | Basis | Basis | Basis | |||||||||||||||
December 31, 2017 | $ | 193,778 | $ | 685 | $ | 855 | 1.41 | % | 1.77 | % | ||||||||||
September 30, 2017 | 161,003 | 504 | 666 | 1.25 | % | 1.66 | % | |||||||||||||
June 30, 2017 | 126,341 | 324 | 476 | 1.02 | % | 1.51 | % | |||||||||||||
March 31, 2017 | 119,938 | 283 | 398 | 0.94 | % | 1.33 | % | |||||||||||||
December 31, 2016 | 123,909 | 251 | 373 | 0.81 | % | 1.20 | % | |||||||||||||
September 30, 2016 | 114,858 | 195 | 287 | 0.68 | % | 1.00 | % | |||||||||||||
June 30, 2016 | 103,259 | 174 | 234 | 0.67 | % | 0.91 | % | |||||||||||||
March 31, 2016 | 90,014 | 127 | 172 | 0.57 | % | 0.77 | % | |||||||||||||
($ in thousands) | ||||||||||||||||||||
Average | ||||||||||||||||||||
Balance of | Interest Expense | Average Cost of Funds | ||||||||||||||||||
Repurchase | GAAP | Economic | GAAP | Economic | ||||||||||||||||
Years Ended | Agreements | Basis | Basis | Basis | Basis | |||||||||||||||
December 31, 2017 | $ | 150,265 | $ | 1,796 | 2,395 | 1.20 | % | 1.59 | % | |||||||||||
December 31, 2016 | 108,010 | 747 | 1,066 | 0.69 | % | 0.99 | % |
Average GAAP Cost of Funds | Average Economic Cost of Funds | |||||||||||||||||||||||
Relative to Average | Relative to Average | |||||||||||||||||||||||
Average LIBOR | One-Month | Six-Month | One-Month | Six-Month | ||||||||||||||||||||
Three Months Ended | One-Month | Six-Month | LIBOR | LIBOR | LIBOR | LIBOR | ||||||||||||||||||
December 31, 2017 | 1.36 | % | 1.62 | % | 0.05 | % | (0.21 | )% | 0.41 | % | 0.15 | % | ||||||||||||
September 30, 2017 | 1.20 | % | 1.45 | % | 0.05 | % | (0.20 | )% | 0.46 | % | 0.21 | % | ||||||||||||
June 30, 2017 | 1.05 | % | 1.43 | % | (0.03 | )% | (0.41 | )% | 0.46 | % | 0.08 | % | ||||||||||||
March 31, 2017 | 0.82 | % | 1.37 | % | 0.12 | % | (0.43 | )% | 0.51 | % | (0.04 | )% | ||||||||||||
December 31, 2016 | 0.62 | % | 1.28 | % | 0.19 | % | (0.47 | )% | 0.58 | % | (0.08 | )% | ||||||||||||
September 30, 2016 | 0.49 | % | 1.09 | % | 0.19 | % | (0.41 | )% | 0.51 | % | (0.09 | )% | ||||||||||||
June 30, 2016 | 0.44 | % | 0.92 | % | 0.23 | % | (0.25 | )% | 0.47 | % | (0.01 | )% | ||||||||||||
March 31, 2016 | 0.40 | % | 0.84 | % | 0.17 | % | (0.27 | )% | 0.37 | % | (0.07 | )% | ||||||||||||
Average GAAP Cost of Funds | Average Economic Cost of Funds | |||||||||||||||||||||||
Relative to Average | Relative to Average | |||||||||||||||||||||||
Average LIBOR | One-Month | Six-Month | One-Month | Six-Month | ||||||||||||||||||||
Years Ended | One-Month | Six-Month | LIBOR | LIBOR | LIBOR | LIBOR | ||||||||||||||||||
December 31, 2017 | 1.11 | % | 1.47 | % | 0.09 | % | (0.27 | )% | 0.48 | % | 0.12 | % | ||||||||||||
December 31, 2016 | 0.49 | % | 1.03 | % | 0.20 | % | (0.34 | )% | 0.50 | % | (0.04 | )% |
(in thousands) | ||||||||||||
2017 | 2016 | Change | ||||||||||
Realized (losses) gains on sales of MBS | $ | (1 | ) | $ | 180 | $ | (181 | ) | ||||
Unrealized losses on MBS | (2,066 | ) | (3,786 | ) | 1,720 | |||||||
Total losses on MBS | (2,067 | ) | (3,606 | ) | 1,539 | |||||||
Losses on derivative instruments | (46 | ) | (16 | ) | (30 | ) | ||||||
Gains on retained interests | 645 | 2,425 | (1,780 | ) | ||||||||
Unrealized (losses) gains on Orchid Island Capital, Inc. | (2,207 | ) | 1,256 | (3,463 | ) |
15 Year | 30 Year | Three | ||||||||||||||||||
5 Year | 10 Year | Fixed-Rate | Fixed-Rate | Month | ||||||||||||||||
Treasury Rate(1) | Treasury Rate(1) | Mortgage Rate(2) | Mortgage Rate(2) | Libor(3) | ||||||||||||||||
December 31, 2017 | 2.21 | % | 2.40 | % | 3.39 | % | 3.95 | % | 1.61 | % | ||||||||||
September 30, 2017 | 1.93 | % | 2.33 | % | 3.11 | % | 3.81 | % | 1.32 | % | ||||||||||
June 30, 2017 | 1.88 | % | 2.30 | % | 3.17 | % | 3.90 | % | 1.26 | % | ||||||||||
March 31, 2017 | 1.93 | % | 2.40 | % | 3.41 | % | 4.20 | % | 1.13 | % | ||||||||||
December 31, 2016 | 1.93 | % | 2.45 | % | 3.43 | % | 4.20 | % | 0.98 | % | ||||||||||
September 30, 2016 | 1.16 | % | 1.61 | % | 2.76 | % | 3.46 | % | 0.85 | % | ||||||||||
June 30, 2016 | 1.01 | % | 1.49 | % | 2.84 | % | 3.57 | % | 0.65 | % | ||||||||||
March 31, 2016 | 1.22 | % | 1.79 | % | 2.97 | % | 3.69 | % | 0.63 | % |
$ 5,814 Unrealized (losses) gains on MBS (3,099) 112 (3,211) Total losses onMBS (3,030) (5,633) 2,603 Losses on derivative instruments - (5,293) 5,293 Gains on |
(in thousands) | ||||||||||||
2017 | 2016 | Change | ||||||||||
Compensation and benefits | $ | 3,852 | $ | 3,325 | $ | 527 | ||||||
Legal fees | 111 | 210 | (99 | ) | ||||||||
Accounting, auditing and other professional fees | 344 | 389 | (45 | ) | ||||||||
Directors' fees and liability insurance | 659 | 622 | 37 | |||||||||
Other G&A expenses | 1,437 | 1,198 | 239 | |||||||||
$ | 6,403 | $ | 5,744 | $ | 659 |
Structured | ||||||||||||
PT MBS | MBS | Total | ||||||||||
Three Months Ended | Portfolio (%) | Portfolio (%) | Portfolio (%) | |||||||||
December 31, 2017 | 7.2 | 16.9 | 8.8 | |||||||||
September 30, 2017 | 5.2 | 18.8 | 8.3 | |||||||||
June 30, 2017 | 5.9 | 20.4 | 9.9 | |||||||||
March 31, 2017 | 4.8 | 18.8 | 8.8 | |||||||||
December 31, 2016 | 5.5 | 27.3 | 11.1 | |||||||||
September 30, 2016 | 9.4 | 19.7 | 13.6 | |||||||||
June 30, 2016 | 7.8 | 20.4 | 12.6 | |||||||||
March 31, 2016 | 11.8 | 16.6 | 14.3 |
($ in thousands) | ||||||
Weighted | ||||||
Percentage | Average | |||||
of | Weighted | Maturity | ||||
Fair | Entire | Average | in | Longest | ||
Asset Category | Value | Portfolio | Coupon | Months | Maturity | |
December 31, 2017 | ||||||
Fixed Rate PT MBS | $ | 207,179 | 98.8% | 4.21% | 321 | 1-Dec-47 |
Interest-Only Securities | 1,476 | 0.7% | 3.43% | 229 | 25-Dec-39 | |
Inverse Interest-Only Securities | 1,037 | 0.5% | 5.01% | 278 | 25-Apr-41 | |
Total Mortgage Assets | $ | 209,692 | 100.0% | 4.21% | 320 | 1-Dec-47 |
December 31, 2016 | ||||||
Fixed Rate PT MBS | $ | 124,299 | 95.4% | 4.24% | 347 | 1-Oct-46 |
Interest-Only Securities | 2,654 | 2.0% | 3.48% | 245 | 25-Dec-39 | |
Inverse Interest-Only Securities | 3,349 | 2.6% | 5.52% | 325 | 25-Dec-46 | |
Total Mortgage Assets | $ | 130,302 | 100.0% | 4.26% | 344 | 25-Dec-46 |
($ in thousands) | ||||||||||||||||
December 31, 2017 | December 31, 2016 | |||||||||||||||
Percentage of | Percentage of | |||||||||||||||
Agency | Fair Value | Entire Portfolio | Fair Value | Entire Portfolio | ||||||||||||
Fannie Mae | $ | 178,581 | 85.2 | % | $ | 120,961 | 92.8 | % | ||||||||
Freddie Mac | 30,896 | 14.7 | % | 8,870 | 6.8 | % | ||||||||||
Ginnie Mae | 215 | 0.1 | % | 471 | 0.4 | % | ||||||||||
Total Portfolio | $ | 209,692 | 100.0 | % | $ | 130,302 | 100.0 | % |
December 31, 2017 | December 31, 2016 | |||||||
Weighted Average Pass-through Purchase Price | $ | 109.06 | $ | 110.31 | ||||
Weighted Average Structured Purchase Price | $ | 6.02 | $ | 6.74 | ||||
Weighted Average Pass-through Current Price | $ | 107.13 | $ | 107.54 | ||||
Weighted Average Structured Current Price | $ | 7.06 | $ | 10.40 | ||||
Effective Duration (1) | 3.832 | 4.769 |
($ in thousands) | ||||||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Total Cost | Average Price | Weighted Average Yield | Total Cost | Average Price | Weighted Average Yield | |||||||||||||||||||
PT MBS | $ | 95,585 | $ | 107.37 | 2.74 | % | $ | 133,100 | $ | 110.31 | 2.42 | % | ||||||||||||
Structured MBS | - | - | - | 2,993 | 11.43 | 5.15 | % |
($ in thousands) | ||||||||||||||||||||||||||||
Fair | $ Change in Fair Value | % Change in Fair Value | ||||||||||||||||||||||||||
MBS Portfolio | Value | -100BPS | +100BPS | +200BPS | -100BPS | +100BPS | +200BPS | |||||||||||||||||||||
Fixed Rate MBS | $ | 207,179 | $ | 5,989 | $ | (10,427 | ) | $ | (22,982 | ) | 2.89 | % | (5.03 | )% | (11.09 | )% | ||||||||||||
Interest-Only MBS | 1,476 | (619 | ) | 358 | 617 | (41.90 | )% | 24.27 | % | 41.75 | % | |||||||||||||||||
Inverse Interest-Only MBS | 1,037 | (132 | ) | (84 | ) | (280 | ) | (12.76 | )% | (8.12 | )% | (27.03 | )% | |||||||||||||||
Total MBS Portfolio | $ | 209,692 | $ | 5,238 | $ | (10,153 | ) | $ | (22,645 | ) | 2.50 | % | (4.84 | )% | (10.80 | )% |
($ in thousands) | ||||||||||||||||||||||||||||
Notional | $ Change in Fair Value | % Change in Fair Value | ||||||||||||||||||||||||||
Amount(1) | -100BPS | +100BPS | +200BPS | -100BPS | +100BPS | +200BPS | ||||||||||||||||||||||
Eurodollar Futures Contracts | ||||||||||||||||||||||||||||
Repurchase Agreement Hedges | $ | 960,000 | $ | (1,343 | ) | $ | 2,400 | $ | 4,800 | (0.57 | )% | 1.02 | % | 2.05 | % | |||||||||||||
Junior Subordinated Debt Hedges | 416,000 | (582 | ) | 1,040 | 2,080 | (0.57 | )% | 1.02 | % | 2.05 | % | |||||||||||||||||
$ | 1,376,000 | $ | (1,925 | ) | $ | 3,440 | $ | 6,880 | (0.57 | )% | 1.02 | % | 2.05 | % | ||||||||||||||
Gross Totals | $ | 3,313 | $ | (6,713 | ) | $ | (15,765 | ) |
($ in thousands) | ||||||||||||||||
Difference Between Ending | ||||||||||||||||
Ending Balance | Average Balance | Repurchase Agreements and | ||||||||||||||
of Repurchase | of Repurchase | Average Repurchase Agreements | ||||||||||||||
Three Months Ended | Agreements | Agreements | Amount | Percent | ||||||||||||
December 31, 2017 | $ | 200,183 | $ | 193,778 | $ | 6,405 | 3.31 | % | ||||||||
September 30, 2017 | 187,374 | 161,003 | 26,371 | 16.38 | %(1) | |||||||||||
June 30, 2017 | 134,633 | 126,341 | 8,292 | 6.56 | % | |||||||||||
March 31, 2017 | 118,049 | 119,938 | (1,889 | ) | (1.57 | )% | ||||||||||
December 31, 2016 | 121,828 | 123,909 | (2,081 | ) | (1.68 | )% | ||||||||||
September 30, 2016 | 125,991 | 114,858 | 11,133 | 9.69 | % | |||||||||||
June 30, 2016 | 103,725 | 103,259 | 466 | 0.45 | % | |||||||||||
March 31, 2016 | 102,794 | 90,014 | 12,780 | 14.20 | %(2) |
Maximum Average Difference Between Ending Balance Balance Balance Repurchase Agreements and of Repurchase of Repurchase of Repurchase Average Repurchase Agreements Three Months Ended Agreements Agreements Agreements Amount Percent December 31, 2021 $ 58,878 $ 62,139 $ 61,019 $ (2,141) (3.51)% September 30, 2021 63,160 72,047 67,253 (4,093) (6.09)% June 30, 2021 71,346 72,372 72,241 (895) (1.24)% March 31, 2021 73,136 76,004 69,104 4,032 5.83% December 31, 2020 65,071 70,684 67,878 (2,807) (4.14)% - 51 - September 30, 2020 70,685 70,794 61,151 9,534 15.59% (1) June 30, 2020 51,617 52,068 51,987 (370) (0.71)% March 31, 2020 52,357 214,921 131,156 (78,799) (60.08)% (2) (1)The higher ending balance relative to the average balance during the quarterended September 30, 2020 reflects the increase in the portfolio. During that quarter,the Company's investment in PT MBS increased $20.4 million. (2)The lower ending balance relative to the average balance during the quarterended March 31, 2020 reflects the Company’s response to the COVID-19 pandemic. During that quarter,the Company's investment in PT MBS decreased $162.4 million. |
(in thousands) | ||||||||||||||||||||
Obligations Maturing | ||||||||||||||||||||
Within | One to Three | Three to Five | More than Five | Total | ||||||||||||||||
Year | Years | Years | Years | Total | ||||||||||||||||
Repurchase agreements | $ | 200,183 | $ | - | $ | - | $ | - | $ | 200,183 | ||||||||||
Interest expense on repurchase agreements(1) | 603 | - | - | - | 603 | |||||||||||||||
Junior subordinated notes(2) | - | - | - | 26,000 | 26,000 | |||||||||||||||
Interest expense on junior subordinated notes(1) | 1,404 | 2,686 | 2,683 | 17,390 | 24,163 | |||||||||||||||
Settlement obligation | 250 | 250 | - | - | 500 | |||||||||||||||
Totals | $ | 202,440 | $ | 2,936 | $ | 2,683 | $ | 43,390 | $ | 251,449 |
BIMINI CAPITAL MANAGEMENT, INC. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
DECEMBER 31, 2017 and 2016 | ||||||||
2017 | 2016 | |||||||
ASSETS: | ||||||||
Mortgage-backed securities, at fair value | ||||||||
Pledged to counterparties | $ | 209,269,791 | $ | 129,582,386 | ||||
Unpledged | 422,341 | 719,603 | ||||||
Total mortgage-backed securities | 209,692,132 | 130,301,989 | ||||||
Cash and cash equivalents | 6,103,250 | 4,429,459 | ||||||
Restricted cash | 2,649,610 | 1,221,978 | ||||||
Investment in Orchid Island Capital, Inc. common stock, at fair value | 14,105,934 | 15,108,240 | ||||||
Retained interests in securitizations | 653,380 | 1,113,736 | ||||||
Accrued interest receivable | 746,121 | 512,760 | ||||||
Property and equipment, net | 3,359,312 | 3,407,040 | ||||||
Deferred tax assets, net | 44,524,584 | 63,833,063 | ||||||
Other assets | 2,754,474 | 2,942,139 | ||||||
Total Assets | $ | 284,588,797 | $ | 222,870,404 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
LIABILITIES: | ||||||||
Repurchase agreements | $ | 200,182,751 | $ | 121,827,586 | ||||
Junior subordinated notes due to Bimini Capital Trust II | 26,804,440 | 26,804,440 | ||||||
Accrued interest payable | 346,444 | 114,199 | ||||||
Other liabilities | 1,562,914 | 1,977,281 | ||||||
Total Liabilities | 228,896,549 | 150,723,506 | ||||||
STOCKHOLDERS' EQUITY: | ||||||||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; 100,000 shares | ||||||||
designated Series A Junior Preferred Stock, 9,900,000 shares undesignated; | ||||||||
no shares issued and outstanding as of December 31, 2017 and 2016 | - | - | ||||||
Class A Common stock, $0.001 par value; 98,000,000 shares designated: 12,660,627 | ||||||||
shares issued and outstanding as of December 31, 2017 and 12,631,627 shares | ||||||||
issued and outstanding as of December 31, 2016 | 12,661 | 12,632 | ||||||
Class B Common stock, $0.001 par value; 1,000,000 shares designated, 31,938 shares | ||||||||
issued and outstanding as of December 31, 2017 and 2016 | 32 | 32 | ||||||
Class C Common stock, $0.001 par value; 1,000,000 shares designated, 31,938 shares | ||||||||
issued and outstanding as of December 31, 2017 and 2016 | 32 | 32 | ||||||
Additional paid-in capital | 334,878,779 | 334,850,838 | ||||||
Accumulated deficit | (279,199,256 | ) | (262,716,636 | ) | ||||
Stockholders' Equity | 55,692,248 | 72,146,898 | ||||||
Total Liabilities and Equity | $ | 284,588,797 | $ | 222,870,404 | ||||
See Notes to Consolidated Financial Statements |
BIMINI CAPITAL MANAGEMENT, INC. | ||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
For the Years Ended December 31, 2017 and 2016 | ||||||||
2017 | 2016 | |||||||
Revenues: | ||||||||
Advisory services | $ | 7,431,359 | $ | 5,488,691 | ||||
Interest income | 6,054,381 | 4,235,081 | ||||||
Dividend income from Orchid Island Capital, Inc. common stock | 2,518,660 | 2,343,660 | ||||||
Total revenues | 16,004,400 | 12,067,432 | ||||||
Interest expense: | ||||||||
Repurchase agreements | (1,795,753 | ) | (747,374 | ) | ||||
Junior subordinated notes | (1,237,614 | ) | (1,108,610 | ) | ||||
Net revenues | 12,971,033 | 10,211,448 | ||||||
Other (expense) income: | ||||||||
Unrealized losses on mortgage-backed securities | (2,066,256 | ) | (3,785,939 | ) | ||||
Realized (losses) gains on mortgage-backed securities | (689 | ) | 179,667 | |||||
Unrealized (losses) gains on Orchid Island Capital, Inc. common stock | (2,206,541 | ) | 1,255,533 | |||||
Losses on derivative instruments | (46,031 | ) | (15,638 | ) | ||||
Gains on retained interests in securitizations | 645,221 | 2,425,190 | ||||||
Other income | 1,578 | 1,125 | ||||||
Total other (expense) income | (3,672,718 | ) | 59,938 | |||||
Expenses: | ||||||||
Compensation and related benefits | 3,851,925 | 3,324,955 | ||||||
Directors' fees and liability insurance | 658,752 | 621,873 | ||||||
Audit, legal and other professional fees | 455,167 | 599,243 | ||||||
Administrative and other expenses | 1,436,941 | 1,197,593 | ||||||
Total expenses | 6,402,785 | 5,743,664 | ||||||
Net income before income tax provision | 2,895,530 | 4,527,722 | ||||||
Income tax provision | 19,378,150 | 1,141,718 | ||||||
Net (loss) income | $ | (16,482,620 | ) | $ | 3,386,004 | |||
Basic and Diluted Net (Loss) Income Per Share of: | ||||||||
CLASS A COMMON STOCK | ||||||||
Basic and Diluted | $ | (1.30 | ) | $ | 0.27 | |||
CLASS B COMMON STOCK | ||||||||
Basic and Diluted | $ | (1.30 | ) | $ | 0.27 | |||
Weighted Average Shares Outstanding: | ||||||||
CLASS A COMMON STOCK | ||||||||
Basic and Diluted | 12,633,216 | 12,698,122 | ||||||
CLASS B COMMON STOCK | ||||||||
Basic and Diluted | 31,938 | 31,938 | ||||||
See Notes to Consolidated Financial Statements |
BIMINI CAPITAL MANAGEMENT, INC | ||||||||||||||||
CONSOLIDATED STATEMENTS OF EQUITY | ||||||||||||||||
Years Ended December 31, 2017 and 2016 | ||||||||||||||||
Stockholders' Equity | ||||||||||||||||
Common | Additional | Accumulated | ||||||||||||||
Stock | Paid-in Capital | Deficit | Total | |||||||||||||
Balances, January 1, 2016 | $ | 12,437 | $ | 334,630,263 | $ | (266,102,640 | ) | $ | 68,540,060 | |||||||
Net income | - | - | 3,386,004 | 3,386,004 | ||||||||||||
Issuance of Class A common shares pursuant to stock | ||||||||||||||||
based compensation plans | 259 | 193,491 | - | 193,750 | ||||||||||||
Amortization of stock based compensation | - | 27,084 | - | 27,084 | ||||||||||||
Balances, December 31, 2016 | 12,696 | 334,850,838 | (262,716,636 | ) | 72,146,898 | |||||||||||
Net loss | - | - | (16,482,620 | ) | (16,482,620 | ) | ||||||||||
Issuance of Class A common shares pursuant to stock | ||||||||||||||||
based compensation plans | 29 | (29 | ) | - | - | |||||||||||
Amortization of stock based compensation | - | 27,970 | - | 27,970 | ||||||||||||
Balances, December 31, 2017 | $ | 12,725 | $ | 334,878,779 | $ | (279,199,256 | ) | $ | 55,692,248 | |||||||
See Notes to Consolidated Financial Statements |
BIMINI CAPITAL MANAGEMENT, INC. | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
Years Ended December 31, 2017 and 2016 | ||||||||
2017 | 2016 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net (loss) income | $ | (16,482,620 | ) | $ | 3,386,004 | |||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||
Stock based compensation and equity plan amortization | 27,970 | 220,834 | ||||||
Depreciation | 77,107 | 85,572 | ||||||
Deferred income tax provision | 19,308,479 | 999,179 | ||||||
Losses on mortgage-backed securities | 2,066,945 | 3,606,272 | ||||||
Gains on retained interests in securitizations | (645,221 | ) | (2,425,190 | ) | ||||
Unrealized losses (gains) on Orchid Island Capital, Inc. common stock | 2,206,541 | (1,255,533 | ) | |||||
Changes in operating assets and liabilities: | ||||||||
Accrued interest receivable | (233,361 | ) | (161,711 | ) | ||||
Other assets | 187,665 | (240,484 | ) | |||||
Accrued interest payable | 232,245 | 30,242 | ||||||
Other liabilities | (414,367 | ) | (556,161 | ) | ||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 6,331,383 | 3,689,024 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
From mortgage-backed securities investments: | ||||||||
Purchases | (95,585,190 | ) | (136,092,749 | ) | ||||
Sales | 1,654,834 | 73,061,443 | ||||||
Principal repayments | 12,473,268 | 13,111,444 | ||||||
Payments received on retained interests in securitizations | 1,105,577 | 2,435,732 | ||||||
Purchases of Orchid Island Capital, Inc. common stock | (1,204,235 | ) | (1,859,277 | ) | ||||
Purchases of property and equipment | (29,379 | ) | - | |||||
NET CASH USED IN INVESTING ACTIVITIES | (81,585,125 | ) | (49,343,407 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from repurchase agreements | 1,028,157,893 | 1,041,580,945 | ||||||
Principal repayments on repurchase agreements | (949,802,728 | ) | (996,987,608 | ) | ||||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 78,355,165 | 44,593,337 | ||||||
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 3,101,423 | (1,061,046 | ) | |||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of the year | 5,651,437 | 6,712,483 | ||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of the year | $ | 8,752,860 | $ | 5,651,437 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||
Cash paid during the year for: | ||||||||
Interest | $ | 2,801,122 | $ | 1,825,742 | ||||
Income taxes | $ | 295,943 | $ | 540,627 | ||||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING ACTIVITIES: | ||||||||
See Notes to Consolidated Financial Statements | ||||||||
(in thousands) | ||||
2017 | 2016 | |||
Cash and cash equivalents | $ | 6,103,250 | $ | 4,429,459 |
Restricted cash | 2,649,610 | 1,221,978 | ||
Total cash, cash equivalents and restricted cash | $ | 8,752,860 | $ | 5,651,437 |
and ● One-twelfth of 1.00% of the Orchid’s month-end equity that is greater than $500 million. |
(in thousands) | ||||||||
2017 | 2016 | |||||||
Management fee | $ | 5,855 | $ | 4,188 | ||||
Allocated overhead | 1,576 | 1,301 | ||||||
Total | $ | 7,431 | $ | 5,489 |
(in thousands) | ||||||||
2017 | 2016 | |||||||
Pass-Through MBS: | ||||||||
Fixed-rate Mortgages | $ | 207,179 | $ | 124,299 | ||||
Total Pass-Through MBS | 207,179 | 124,299 | ||||||
Structured MBS: | ||||||||
Interest-Only Securities | 1,476 | 2,654 | ||||||
Inverse Interest-Only Securities | 1,037 | 3,349 | ||||||
Total Structured MBS | 2,513 | 6,003 | ||||||
Total | $ | 209,692 | $ | 130,302 |
(in thousands) | ||||||||
2017 | 2016 | |||||||
Greater than or equal to ten years | $ | 209,692 | $ | 130,302 | ||||
Total | $ | 209,692 | $ | 130,302 |
(in thousands) | |||||||||
Series | Issue Date | 2017 | 2016 | ||||||
HMAC 2004-2 | May 10, 2004 | $ | - | $ | 143 | ||||
HMAC 2004-3 | June 30, 2004 | 177 | 364 | ||||||
HMAC 2004-4 | August 16, 2004 | 386 | 463 | ||||||
HMAC 2004-5 | September 28, 2004 | 90 | 144 | ||||||
Total | $ | 653 | $ | 1,114 |
(in thousands) | ||||||||
2017 | 2016 | |||||||
Land | $ | 2,247 | $ | 2,247 | ||||
Buildings and improvements | 1,827 | 1,827 | ||||||
Computer equipment and software | 165 | 177 | ||||||
Office furniture and equipment | 198 | 180 | ||||||
Total cost | 4,437 | 4,431 | ||||||
Less accumulated depreciation and amortization | 1,078 | 1,024 | ||||||
Property and equipment, net | $ | 3,359 | $ | 3,407 |
(in thousands) | ||||||||
2017 | 2016 | |||||||
Prepaid expenses | $ | 468 | $ | 756 | ||||
Servicing advances | 243 | 245 | ||||||
Servicing sale receivable, including accrued interest | 222 | 309 | ||||||
Investment in Bimini Capital Trust II | 804 | 804 | ||||||
Due from affiliates | 797 | 566 | ||||||
Other | 220 | 262 | ||||||
Total other assets | $ | 2,754 | $ | 2,942 |
($ in thousands) | ||||||||||||||||||||
OVERNIGHT | BETWEEN 2 | BETWEEN 31 | GREATER | |||||||||||||||||
(1 DAY OR | AND | AND | THAN | |||||||||||||||||
LESS) | 30 DAYS | 90 DAYS | 90 DAYS | TOTAL | ||||||||||||||||
December 31, 2017 | ||||||||||||||||||||
Fair value of securities pledged, including accrued | ||||||||||||||||||||
interest receivable | $ | - | $ | 94,649 | $ | 115,350 | $ | - | $ | 209,999 | ||||||||||
Repurchase agreement liabilities associated with | ||||||||||||||||||||
these securities | $ | - | $ | 90,686 | $ | 109,497 | $ | - | $ | 200,183 | ||||||||||
Net weighted average borrowing rate | - | 1.47 | % | 1.56 | % | - | 1.52 | % | ||||||||||||
December 31, 2016 | ||||||||||||||||||||
Fair value of securities pledged, including accrued | ||||||||||||||||||||
interest receivable | $ | - | $ | 71,565 | $ | 41,334 | $ | 17,172 | $ | 130,071 | ||||||||||
Repurchase agreement liabilities associated with | ||||||||||||||||||||
these securities | $ | - | $ | 66,919 | $ | 38,733 | $ | 16,176 | $ | 121,828 | ||||||||||
Net weighted average borrowing rate | - | 1.01 | % | 0.96 | % | 0.98 | % | 0.99 | % |
($ in thousands) | ||||||||||||||||
As of December 31, 2017 | ||||||||||||||||
Repurchase Agreement Funding Hedges | ||||||||||||||||
Average | Weighted | Weighted | ||||||||||||||
Contract | Average | Average | ||||||||||||||
Notional | Entry | LIBOR | Open | |||||||||||||
Expiration Year | Amount | Rate | Rate | Equity(1) | ||||||||||||
2018 | $ | 60,000 | 1.90 | % | 1.97 | % | $ | 41 | ||||||||
2019 | 60,000 | 2.32 | % | 2.27 | % | (31 | ) | |||||||||
2020 | 60,000 | 2.60 | % | 2.36 | % | (145 | ) | |||||||||
2021 | 60,000 | 2.80 | % | 2.42 | % | (230 | ) | |||||||||
Total / Weighted Average | $ | 60,000 | 2.41 | % | 2.25 | % | $ | (365 | ) |
($ in thousands) | ||||||||||||||||
As of December 31, 2017 | ||||||||||||||||
Junior Subordinated Debt Funding Hedges | ||||||||||||||||
Average | Weighted | Weighted | ||||||||||||||
Contract | Average | Average | ||||||||||||||
Notional | Entry | LIBOR | Open | |||||||||||||
Expiration Year | Amount | Rate | Rate | Equity(1) | ||||||||||||
2018 | $ | 26,000 | 1.84 | % | 1.97 | % | $ | 33 | ||||||||
2019 | 26,000 | 1.63 | % | 2.27 | % | 166 | ||||||||||
2020 | 26,000 | 1.95 | % | 2.36 | % | 107 | ||||||||||
2021 | 26,000 | 2.22 | % | 2.42 | % | 51 | ||||||||||
Total / Weighted Average | $ | 26,000 | 1.91 | % | 2.25 | % | $ | 357 |
($ in thousands) | ||||||||||||||||
As of December 31, 2016 | ||||||||||||||||
Repurchase Agreement Funding Hedges | ||||||||||||||||
Average | Weighted | Weighted | ||||||||||||||
Contract | Average | Average | ||||||||||||||
Notional | Entry | LIBOR | Open | |||||||||||||
Expiration Year | Amount | Rate | Rate | Equity(1) | ||||||||||||
2017 | $ | 60,000 | 1.32 | % | 1.28 | % | $ | (26 | ) | |||||||
2018 | 60,000 | 1.90 | % | 1.82 | % | (49 | ) | |||||||||
2019 | 60,000 | 2.32 | % | 2.21 | % | (69 | ) | |||||||||
2020 | 60,000 | 2.60 | % | 2.45 | % | (88 | ) | |||||||||
2021 | 60,000 | 2.80 | % | 2.64 | % | (93 | ) | |||||||||
Total / Weighted Average | $ | 60,000 | 2.19 | % | 2.08 | % | $ | (325 | ) |
($ in thousands) | ||||||||||||||||
As of December 31, 2016 | ||||||||||||||||
Junior Subordinated Debt Funding Hedges | ||||||||||||||||
Average | Weighted | Weighted | ||||||||||||||
Contract | Average | Average | ||||||||||||||
Notional | Entry | LIBOR | Open | |||||||||||||
Expiration Year | Amount | Rate | Rate | Equity(1) | ||||||||||||
2017 | $ | 26,000 | 1.93 | % | 1.28 | % | $ | (169 | ) | |||||||
2018 | 26,000 | 1.84 | % | 1.82 | % | (6 | ) | |||||||||
2019 | 26,000 | 1.63 | % | 2.21 | % | 150 | ||||||||||
2020 | 26,000 | 1.95 | % | 2.45 | % | 132 | ||||||||||
2021 | 26,000 | 2.22 | % | 2.64 | % | 110 | ||||||||||
Total / Weighted Average | $ | 26,000 | 1.91 | % | 2.08 | % | $ | 217 |
(in thousands) | ||||||||
Consolidated | ||||||||
2017 | 2016 | |||||||
Eurodollar futures contracts (short positions) - Repurchase agreement funding hedges | $ | (32 | ) | $ | (318 | ) | ||
Eurodollar futures contracts (short positions)- Junior subordinated debt funding hedges | (14 | ) | 302 | |||||
Net losses on derivative instruments | $ | (46 | ) | $ | (16 | ) |
($ in thousands) | ||||||||||||
As of December 31, 2017 | ||||||||||||
Repurchase | Derivative | |||||||||||
Assets Pledged to Counterparties | Agreements | Agreements | Total | |||||||||
PT MBS - at fair value | $ | 207,179 | $ | - | $ | 207,179 | ||||||
Structured MBS - at fair value | 2,091 | - | 2,091 | |||||||||
Accrued interest on pledged securities | 730 | - | 730 | |||||||||
Cash | 2,208 | 442 | 2,650 | |||||||||
Total | $ | 212,208 | $ | 442 | $ | 212,650 |
($ in thousands) | ||||||||||||
As of December 31, 2016 | ||||||||||||
Repurchase | Derivative | |||||||||||
Assets Pledged to Counterparties | Agreements | Agreements | Total | |||||||||
PT MBS - at fair value | $ | 124,298 | $ | - | $ | 124,298 | ||||||
Structured MBS - at fair value | 5,284 | - | 5,284 | |||||||||
Accrued interest on pledged securities | 489 | - | 489 | |||||||||
Cash | 456 | 766 | 1,222 | |||||||||
Total | $ | 130,527 | $ | 766 | $ | 131,293 |
(in thousands) | ||||||||||||||||||||||||
Offsetting of Liabilities | ||||||||||||||||||||||||
Net Amount | Gross Amount Not Offset in the | |||||||||||||||||||||||
of Liabilities | Consolidated Balance Sheet | |||||||||||||||||||||||
Gross Amount | Presented | Financial | ||||||||||||||||||||||
Gross Amount | Offset in the | in the | Instruments | Cash | ||||||||||||||||||||
of Recognized | Consolidated | Consolidated | Posted as | Posted as | Net | |||||||||||||||||||
Liabilities | Balance Sheet | Balance Sheet | Collateral | Collateral | Amount | |||||||||||||||||||
December 31, 2017 | ||||||||||||||||||||||||
Repurchase Agreements | $ | 200,183 | $ | - | $ | 200,183 | $ | (197,975 | ) | $ | (2,208 | ) | $ | - | ||||||||||
December 31, 2016 | ||||||||||||||||||||||||
Repurchase Agreements | $ | 121,828 | $ | - | $ | 121,828 | $ | (121,372 | ) | $ | (456 | ) | $ | - |
Shares Issued Related To: | 2017 | 2016 | ||||||
Incentive plan shares | 29,000 | 258,333 | ||||||
Total shares of Class A Common Stock issued | 29,000 | 258,333 |
2017 | 2016 | |||||||||||||||
Weighted- | Weighted- | |||||||||||||||
Average | Average | |||||||||||||||
Grant-Date | Grant-Date | |||||||||||||||
Shares | Fair Value | Shares | Fair Value | |||||||||||||
Nonvested, at January 1 | 70,000 | $ | 1.23 | 77,500 | $ | 1.22 | ||||||||||
Vested during the period | (29,000 | ) | 1.78 | - | - | |||||||||||
Forfeited during the period | - | - | (7,500 | ) | 1.15 | |||||||||||
Nonvested, at December 31 | 41,000 | $ | 0.84 | 70,000 | $ | 1.23 |
($ in thousands) | ||||||||
2017 | 2016 | |||||||
Compensation expense recognized during the year | $ | 28 | $ | 27 | ||||
Unrecognized compensation expense at year end | $ | 11 | $ | 39 | ||||
Weighted-average remaining vesting term (in years) | 0.9 | 1.5 | ||||||
Intrinsic value of unvested shares at year end | $ | 107 | $ | 183 |
(in thousands) | ||||||||
2017 | 2016 | |||||||
Current | $ | 70 | $ | 143 | ||||
Deferred | 19,308 | 999 | ||||||
Income tax provision | $ | 19,378 | $ | 1,142 |
(in thousands) | ||||||||
2017 | 2016 | |||||||
Federal tax based on statutory rate applicable for each year | $ | 984 | $ | 1,539 | ||||
State income tax | 157 | 245 | ||||||
Reduction of deferred tax asset due to enacted decrease in future tax rates | 25,852 | - | ||||||
Reduction of deferred tax asset valuation allowance | (7,628 | ) | (780 | ) | ||||
Other | 13 | 138 | ||||||
Income tax provision | $ | 19,378 | $ | 1,142 |
(in thousands) | ||||||||
2017 | 2016 | |||||||
Deferred tax assets: | ||||||||
Net operating loss carryforwards | $ | 59,691 | $ | 96,500 | ||||
Orchid Island Capital, Inc. common stock | 2,349 | 3,291 | ||||||
MBS | 1,038 | 1,425 | ||||||
Management agreement | 813 | 1,267 | ||||||
Tax hedges | 49 | 366 | ||||||
Accrued expenses | 148 | 330 | ||||||
Other | 661 | 697 | ||||||
64,749 | 103,876 | |||||||
Valuation allowance | (20,224 | ) | (40,043 | ) | ||||
Net deferred tax assets | $ | 44,525 | $ | 63,833 |
(in thousands, except per-share information) | ||||||||
2017 | 2016 | |||||||
Basic and diluted EPS per Class A common share: | ||||||||
(Loss) income attributable to Class A common shares: | ||||||||
Basic and diluted | $ | (16,441 | ) | $ | 3,378 | |||
Weighted average common shares: | ||||||||
Class A common shares outstanding at the balance sheet date | 12,661 | 12,632 | ||||||
Unvested dividend-eligible share based compensation | ||||||||
outstanding at the balance sheet date | - | 70 | ||||||
Effect of weighting | (28 | ) | (4 | ) | ||||
Weighted average shares-basic and diluted | 12,633 | 12,698 | ||||||
(Loss) income per Class A common share: | ||||||||
Basic and diluted | $ | (1.30 | ) | $ | 0.27 |
(in thousands, except per-share information) | ||||||||
2017 | 2016 | |||||||
Basic and diluted EPS per Class B common share: | ||||||||
(Loss) income attributable to Class B common shares: | ||||||||
Basic and diluted | $ | (42 | ) | $ | 8 | |||
Weighted average common shares: | ||||||||
Class B common shares outstanding at the balance sheet date | 32 | 32 | ||||||
Effect of weighting | - | - | ||||||
Weighted average shares-basic and diluted | 32 | 32 | ||||||
(Loss) income per Class B common share: | ||||||||
Basic and diluted | $ | (1.30 | ) | $ | 0.27 |
(in thousands) | ||||||||||||||||
Quoted Prices | ||||||||||||||||
in Active | Significant | |||||||||||||||
Markets for | Other | Significant | ||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||
Fair Value | Assets | Inputs | Inputs | |||||||||||||
Measurements | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
December 31, 2017 | ||||||||||||||||
Mortgage-backed securities | $ | 209,692 | $ | - | $ | 209,692 | $ | - | ||||||||
Orchid Island Capital, Inc. common stock | 14,106 | 14,106 | - | - | ||||||||||||
Retained interests | 653 | - | - | 653 | ||||||||||||
December 31, 2016 | ||||||||||||||||
Mortgage-backed securities | $ | 130,302 | $ | - | $ | 130,302 | $ | - | ||||||||
Orchid Island Capital, Inc. common stock | 15,108 | 15,108 | - | - | ||||||||||||
Retained interests | 1,114 | - | - | 1,114 |
(in thousands) | ||||||||
Retained Interests | ||||||||
2017 | 2016 | |||||||
Balances, January 1 | $ | 1,114 | $ | 1,124 | ||||
Gain included in earnings | 645 | 2,425 | ||||||
Collections | (1,106 | ) | (2,435 | ) | ||||
Balances, December 31 | $ | 653 | $ | 1,114 |
Retained interest fair value ($ in thousands) | $ | 653 | ||
CPR Range | ||||
Prepayment Assumption | (Weighted Average) | |||
Constant Prepayment Rate | 10% (10%) | |||
Severity Range | ||||
Default Assumptions | Probability of Default | (Weighted Average) | Range Of Loss Timing | |
Real Estate Owned | 100% | 22.7% | Next 10 Months | |
Loans in Foreclosure | 100% | 22.7% | Month 4 - 13 | |
Loans 90 Day Delinquent | 100% | 45% | Month 11-28 | |
Loans 60 Day Delinquent | 85% | 45% | Month 11-28 | |
Loans 30 Day Delinquent | 75% | 45% | Month 11-28 | |
Current Loans | 3.3% | 45% | Month 29 and Beyond | |
Remaining Life Range | Discount Rate Range | |||
Cash Flow Recognition | Valuation Technique | (Weighted Average) | (Weighted Average) | |
Nominal Cash Flows | Discounted Cash Flow | 11.5 - 14.5 (12.1) | 27.50% (27.50%) | |
Discounted Cash Flows | Discounted Cash Flow | 1.0 - 3.3 (2.4) | 27.50% (27.50%) |
(in thousands) | ||||||||||
Asset | Investment | |||||||||
Management | Portfolio | Corporate | Eliminations | Total | ||||||
2017 | ||||||||||
Advisory services, external customers | $ | 7,431 | $ | - | $ | - | $ | - | $ | 7,431 |
Advisory services, other operating segments(1) | 207 | - | - | (207) | - | |||||
Interest and dividend income | - | 8,572 | 1 | - | 8,573 | |||||
Interest expense | - | (1,796) | (1,237)(2) | - | (3,033) | |||||
Net revenues | 7,638 | 6,776 | (1,236) | (207) | 12,971 | |||||
Other income | - | (4,306) | 634 (3) | - | (3,672) | |||||
Operating expenses(4) | (3,016) | (3,387) | - | - | (6,403) | |||||
Intercompany expenses(1) | - | (207) | - | 207 | - | |||||
Income (loss) before income taxes | $ | 4,622 | $ | (1,124) | $ | (602) | $ | - | $ | 2,896 |
Assets | $ | 1,632 | $ | 267,429 | $ | 15,528 | $ | - | $ | 284,589 |
Asset | Investment | |||||||||
Management | Portfolio | Corporate | Eliminations | Total | ||||||
2016 | ||||||||||
Advisory services, external customers | $ | 5,489 | $ | - | $ | - | $ | - | $ | 5,489 |
Advisory services, other operating segments(1) | 94 | - | - | (94) | - | |||||
Interest and dividend income | - | 6,576 | 2 | - | 6,578 | |||||
Interest expense | - | (747) | (1,109)(2) | - | (1,856) | |||||
Net revenues | 5,583 | 5,829 | (1,107) | (94) | 10,211 | |||||
Other income | - | (2,675) | 2,735 (3) | - | 60 | |||||
Operating expenses(4) | (2,640) | (3,103) | - | - | (5,743) | |||||
Intercompany expenses(1) | - | (94) | - | 94 | - | |||||
Income (loss) before income taxes | $ | 2,943 | $ | (43) | $ | 1,628 | $ | - | $ | 4,528 |
Assets | $ | 1,856 | $ | 199,883 | $ | 21,131 | $ | - | $ | 222,870 |
provide reasonable assurance that transactions are recorded as necessary topermit preparation of consolidated financial statements in accordance with generally accepted accounting principles, andthat receipts and expenditures of the Company are being made only in accordance with authorizations of managementand directors of the Company; and ● provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the consolidated financial statements. |
Page | |
3.2 3.3 3.4 3.5 3.6 3.7 3.8 Amended and Restated Bylaws, incorporated by reference to Exhibit3.2 to the Company’s Current Report - 93 - 4.1 4.2 10.1 10.2 First Amendment to Management Agreementdated as of April 1,2014, incorporated by reference toExhibit 10.3 10.4 to Exhibit 10.1 tothe Company’s Current Reporton Form 8-K, datedNovember 17, 2021, filedwith the SEC 10.5 Investment Allocation Agreementamong the Company, Orchid IslandCapital, Inc. andBimini Advisors, LLC 10.6 .* 10.7 .* 21.1 ** 31.1 Certification ofthe PrincipalExecutive Officer,pursuant toRule 13a-14(a)or 15d-14(a)of theSecurities ** 31.2 ** 32.1 *** 32.2 *** 101.INS Instance Document**** 101.SCH Taxonomy Extension Schema Document**** 101.CAL Taxonomy Extension Calculation Linkbase Document**** 101.DEF Additional Taxonomy Extension Definition Linkbase Document**** 101.LAB Taxonomy Extension Label Linkbase Document**** 101.PRE Taxonomy Extension Presentation Linkbase Document**** 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) *Management compensatory plan or arrangement required to be filed by Item 601of Regulation S-K. **Filed herewith. ***Furnished herewith ****Submitted electronically herewith. ITEM 16.Form 10-K Summary. - 94 - The Company has elected not to provide summary information. | ||
/s/ Robert E. Cauley | ||||
Robert E. Cauley Chairman and Chief Executive Officer Date:March 11, 2022 By: /s/ G. Hunter Haas, IV G. Hunter Haas,IV President, Chief Financial Officer, Chief Investment Officer and Treasurer (Principal |