7
ORCHID ISLAND CAPITAL, INC.
For the Years Ended December 31, 2020,2019 and 2018($ in thousands)
2020
2019
2018
CASH FLOWS FROM OPERATINGACTIVITIES:Net income (loss)
$
2,128
$
24,265
$
(44,387)
Adjustments to reconcile net income (loss) to net cash provided byoperating activities:Stock based compensation
244
294
492
Realized and unrealized (gains) losses on mortgage-backed securities
(775)
(27,168)
140,957
Realized and unrealized losses on interest rate swaptions
2,972
1,379
1,502
Realized and unrealized losses (gains) on interest rate swaps
59,055
39,471
(1,027)
Realized and unrealized losses on U.S. Treasury Securities
95
0
0
Realized (gains) losses on forward settling to-be-announced securities
(3,231)
4,357
(4,527)
Changes in operating assets and liabilities:
Accrued interest receivable
2,683
837
1,203
Other assets
(446)
80
(3)
Accrued interest payable
(9,944)
4,656
(71)
Other liabilities
2,583
22
4
Due to affiliates
10
(32)
(143)
NET CASH PROVIDED BY OPERATINGACTIVITIES55,374
48,161
94,000
CASH FLOWS FROM INVESTING ACTIVITIES:
From mortgage-backed securities investments:
Purchases
(4,859,434)
(4,241,822)
(3,893,828)
Sales
4,200,536
3,321,206
3,885,817
Principal repayments
523,699
594,833
373,934
Payments on U.S. Treasury securities
(139,807)
0
0
Proceeds from U.S. Treasury securities
139,712
0
0
Net proceeds from reverse repurchase agreements
30
0
0
(Payments on) proceeds from net settlement of to-be-announced securities
(881)
(8,423)
7,292
Purchase of derivative financial instruments, net of margin cash received
(63,195)
(20,600)
6,805
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES
(199,340)
(354,806)
380,020
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from repurchase agreements
33,140,625
45,595,010
52,096,292
Principal payments on repurchase agreements
(32,993,145)
(45,171,956)
(52,605,026)
Cash dividends
(53,645)
(53,307)
(59,312)
Proceeds from issuance of common stock, net of issuance costs
71,050
92,314
0
Common stock repurchases
(68)
(3,024)
(26,423)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
164,817
459,037
(594,469)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTSAND RESTRICTEDCASH
20,851
152,392
(120,449)
CASH, CASH EQUIVALENTS ANDRESTRICTED CASH, beginning of the period278,655
126,263
246,712
CASH, CASH EQUIVALENTS ANDRESTRICTED CASH, end of the period$
299,506
$
278,655
$
126,263
SUPPLEMENTAL DISCLOSURE OFCASH FLOW INFORMATION:Cash paid during the period for:
Interest
$
35,000
$
79,010
$
70,431
SUPPLEMENTAL DISCLOSURE OFNONCASH INVESTING ACTIVITIES:Securities sold settled in later period
$
0
$
0
$
220,655
See Notes to Financial Statements