Orchid Island Capital, Inc. reported significant financial improvements in its third quarter and nine-month results for 2024 compared to the same periods in 2023. As of September 30, 2024, the company’s total assets increased to $5.92 billion, up from $4.26 billion at the end of 2023. This growth was primarily driven by a rise in mortgage-backed securities, which reached $5.44 billion, compared to $3.89 billion at the end of the previous year.
The company achieved a net income of $32.1 million for the nine months ended September 30, 2024, a stark contrast to a net loss of $66.4 million for the same period in 2023. This turnaround was attributed to a substantial increase in interest income, which rose to $169.6 million from $128.0 million year-over-year. Additionally, unrealized gains on mortgage-backed securities and U.S. Treasury securities improved significantly, totaling $73.7 million compared to a loss of $224.6 million in the prior year.
For the third quarter alone, Orchid Island reported a net income of $17.3 million, compared to a net loss of $80.1 million in the same quarter of 2023. The basic and diluted earnings per share for the nine months ended September 30, 2024, were $0.53, compared to a loss of $1.58 per share in 2023. The company’s total expenses decreased to $12.4 million for the nine months ended September 30, 2024, down from $14.5 million in the prior year.
The company’s financial leverage increased, with obligations under repurchase agreements rising to approximately $5.23 billion as of September 30, 2024, compared to $3.71 billion at the end of 2023. The economic leverage ratio stood at 7.6 to 1, up from 6.7 to 1 previously.
Orchid Island also engaged in capital-raising activities, issuing 15.3 million shares under its June 2024 equity distribution agreement, generating approximately $128.6 million in gross proceeds. Subsequent to the reporting period, an additional 332,000 shares were issued for $2.7 million.
The company’s management agreement with Bimini Advisors, LLC was renewed through February 2025, with fees structured based on month-end equity. As of September 30, 2024, Orchid Island had cash and cash equivalents of $322.1 million, reflecting a strong liquidity position to support its operations and strategic initiatives.
About Orchid Island Capital, Inc.
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