Bimini Capital Management (BMNM) Q4 2024 earnings summary

Executive summary

• Fourth quarter 2024 saw a shifting economic outlook, with the Fed lowering rates by 100 basis points amid persistent inflation and slowing growth.

• Reported a net loss of $1.5 million ($0.15 per share) for Q4 2024; book value per share was $0.68, down from $0.81 a year ago.

• Advisory service revenue increased to $3.4 million in Q4, driven by growth at Orchid Island Capital.

• Investment portfolio generated $0.3 million net interest income and $0.2 million in dividends from Orchid stock in Q4.

• Positive cash flows from operations enabled MBS portfolio growth throughout 2024.

Financial highlights

• Q4 2024 net income before taxes was $0.6 million, but a $2.1 million tax provision resulted in a net loss of $1.5 million.

• Advisory service revenue for Q4 was $3.4 million; interest and dividend income totaled $1.9 million; operating expenses were $2.8 million.

• Book value per share at December 31, 2024: $0.68; stockholders' equity: $6.8 million.

• MBS portfolio increased by $4.0 million in Q4 and $29.5 million for the year.

• Average yield on MBS in Q4: 5.56%; average cost of funds: 4.87%; average interest rate spread: 0.69%.

Outlook and guidance

• Economic conditions remain fluid, with ongoing uncertainty around interest rates, Fed policy, and the MBS market.

• Management notes economic activity remains resilient, labor market healthy, and inflation above Fed's 2% target.

• Quarter-to-date market conditions have been favorable for both Orchid and Royal Palm portfolios.