Bimini Capital Management (BMNM) Q2 2024 earnings summary

Executive summary

• Reported a net loss of $0.3 million for Q2 2024, or $0.03 per share, with book value per share at $0.81 and stockholders' equity at $8.1 million.

• For the six months ended June 30, 2024, consolidated net loss was $0.1 million, compared to net income of $1.3 million in 2023.

• Advisory service revenues rose 8% sequentially to $3.2 million, driven by Orchid Island Capital's increased equity.

• The company operates in two segments: asset management (advisory services to Orchid Island Capital and Royal Palm) and investment portfolio (primarily agency MBS and Orchid stock).

• Advisory services revenue from Orchid accounted for 66% of consolidated revenues for the six months ended June 30, 2024.

Financial highlights

• Advisory service revenue for Q2 2024 was $3.2 million; interest and dividend income totaled $1.5 million.

• Net loss before taxes for the quarter was $0.2 million, down from $0.6 million net income before taxes in Q1 2024.

• Interest expense on repurchase agreements was $1.2 million and $0.6 million on long-term debt for Q2 2024.

• Operating expenses for the quarter were $2.8 million; income tax provision was $0.1 million.

• For the six months ended June 30, 2024, total revenues were $9.2 million, up from $8.6 million year-over-year.

Outlook and guidance

• Management anticipates potential Fed rate cuts later in 2024, possibly starting in September, which could benefit the mortgage REIT sector.

• The company expects continued revenue from advisory services and dividends from Orchid, with a focus on managing interest rate and prepayment risks.

• Cautions that while market expectations for rate cuts have risen, the Fed has not yet acted.