Prologis for mortgages: Imagine Prologis, a company that owns and leases out massive warehouses. Orchid Island Capital operates similarly as a REIT, but instead of physical property, it essentially "rents out" or earns income from pools of residential mortgages.

A specialized bond fund for home loans: Think of it like a highly focused bond mutual fund you might invest in through Fidelity or Vanguard, but instead of investing in a mix of different corporate or government bonds, Orchid Island Capital exclusively buys and manages securities backed by U.S. residential mortgages.

A behind-the-scenes mortgage bank: Imagine a bank like JPMorgan Chase, but stripped down: it doesn't have branches, it doesn't take deposits, and it doesn't directly lend to people for homes. Instead, Orchid Island Capital focuses solely on investing in the bundled-up residential mortgage loans (securities) that banks originate, profiting from their interest payments.

• Traditional Pass-Through Agency RMBS: Investments in standard mortgage-backed securities such as mortgage pass-through certificates and collateralized mortgage obligations, which represent ownership interests in pools of residential mortgage loans.
• Structured Agency RMBS: Investments in specialized mortgage-backed securities that segment the cash flows from underlying mortgage pools into components like interest-only securities, inverse interest-only securities, and principal-only securities.

Orchid Island Capital (ORC) is a specialty finance company that operates as a real estate investment trust (REIT). Its primary business involves investing in and holding Agency Residential Mortgage-Backed Securities (RMBS) to generate income from the interest payments on these securities.

As an investment firm focused on acquiring and managing a portfolio of securities, Orchid Island Capital does not have "customers" in the traditional sense, as it does not sell products or services to other companies or individuals. Its revenue is derived from the returns on its investment portfolio rather than from sales to external customers.

• Fannie Mae (FNMA)
• Freddie Mac (FMCC)
• Ginnie Mae

Robert E. Cauley Chairman of the Board of Directors, President, and Chief Executive Officer

Mr. Cauley has served as Chairman, President, and Chief Executive Officer of Orchid Island Capital, Inc. since August 2010. He co-founded Bimini Capital Management Inc., the company's manager, in 2003. He has held the roles of CEO and Chairman of the Board of Directors of Bimini since April 2008, following his tenure as Vice-Chairman, Chief Financial Officer, and Chief Investment Officer of Bimini. Prior to co-founding Bimini, Mr. Cauley was a vice-president and portfolio manager at Federated Investors from 1996 to 2003. His experience also includes serving as a member of the ABS/MBS structuring desk at Lehman Brothers from 1994 to 1996 and as a credit analyst at Barclays Bank, PLC from 1992 to 1994. Mr. Cauley is a CPA (inactive status) and is a veteran of the United States Marine Corps.

G. Hunter Haas, IV Chief Financial Officer, Chief Investment Officer, and Director

Mr. Haas has served as Chief Financial Officer, Chief Investment Officer, and Director of Orchid Island Capital, Inc. since August 2010. He also holds the positions of President, Chief Investment Officer, and Chief Financial Officer of Bimini Advisors LLC, the company's manager, since April 2008. Before these roles, he was a Senior Vice President and Head of Research and Trading at Bimini. Mr. Haas initially joined Bimini in May 2004 as Vice President and Head of Mortgage Research. With over 12 years in the industry, he has managed trading operations for the portfolio since May 2004 and possesses approximately eight years of experience in senior management for a public REIT. Earlier in his career, he worked in the mortgage industry, responsible for hedging servicing portfolios at National City Mortgage and Homeside Lending, Inc.

Jerry Sintes Vice President and Treasurer

Mr. Sintes serves as the Vice President and Treasurer for Orchid Island Capital, Inc. He holds a Bachelor of Science degree in Accounting from Louisiana State University and is a Certified Public Accountant, as well as a member of the American Institute of Certified Public Accountants.

1. Interest Rate Risk: As a mortgage Real Estate Investment Trust (mREIT), Orchid Island Capital's profitability is highly sensitive to changes in interest rates. The company generates income from the spread between the interest earned on its long-term RMBS assets and the short-term interest rates it pays on its borrowed funds (primarily through repurchase agreements). An increase in short-term interest rates raises borrowing costs, while rising long-term rates can decrease the market value of its existing RMBS portfolio, shrinking profit margins and potentially leading to losses. Conversely, significant increases in interest rates can negatively affect the value of its investments and increase borrowing costs, thereby reducing earnings and potentially impacting its ability to pay distributions to stockholders.
2. Prepayment Risk (and Extension Risk): Changes in interest rates directly influence mortgage prepayment speeds, posing a significant risk. When interest rates fall, borrowers are more likely to refinance their mortgages, leading to earlier-than-anticipated repayment of higher-yielding RMBS in ORC's portfolio. This forces the company to reinvest the principal at lower prevailing interest rates, which can reduce its overall returns and net interest margin. Conversely, in a rising interest rate environment, homeowners may hold onto their mortgages longer, extending the duration of ORC's assets (extension risk), which can expose the company to prolonged periods of higher borrowing costs relative to its fixed-rate assets.
3. Leverage Risk and Dividend Sustainability: Orchid Island Capital, like other mREITs, utilizes significant financial leverage (borrowing to acquire assets) to enhance its returns. While leverage can amplify profits in favorable market conditions, it also magnifies losses when market conditions are adverse, such as during periods of interest rate volatility or declining asset values. This high leverage contributes to the volatility of the company's book value. Furthermore, the sustainability of ORC's dividend, which is a major draw for investors, is closely tied to its ability to maintain a sufficient net interest spread. The company has a history of dividend cuts, and its high payout ratio (dividends potentially exceeding earnings) raises concerns about the long-term sustainability of its current dividend, especially if interest rate and prepayment risks erode its earnings.

The addressable market for Orchid Island Capital's main products and services, which include investments in Agency Residential Mortgage-Backed Securities (RMBS), is the U.S. Mortgage-Backed Securities (MBS) market. This market is primarily composed of Agency RMBS.

The U.S. Mortgage-Backed Securities market was estimated at USD 15.55 trillion in 2025 and is projected to grow to USD 22.43 trillion by 2030, with a compound annual growth rate (CAGR) of 7.60% during the forecast period (2025-2030). As of 2024, the market size was estimated at USD 14.37 trillion. The Agency MBS segment consistently accounts for over 90% of total RMBS new issuance in the residential mortgage market.

The market size is for the United States.

Orchid Island Capital (ORC) is expected to drive future revenue growth over the next 2-3 years through several key strategies and market conditions:

1. Expansion of Agency RMBS Portfolio: The company is actively growing its investment portfolio of Agency Residential Mortgage-Backed Securities (RMBS). For instance, in Q4 2025, Orchid Island Capital significantly increased its average Mortgage-Backed Securities (MBS) balance, which, alongside the doubling of its equity base and MBS portfolio over 2025, indicates a clear strategy of expanding its asset base to generate more interest income.
2. Favorable Funding Cost Trends: A decline in funding costs is anticipated to enhance net interest income. Orchid Island Capital experienced a reduction in its weighted average repo rate in Q4 2025, and the funding environment has shown further improvement since year-end, with lower SOFR rates and tightening mortgage repo spreads. These trends are expected to positively impact the company's profitability and, consequently, its revenue.
3. Strategic Asset Allocation and Investment in Higher-Yielding RMBS: Orchid Island Capital's investment strategy focuses on acquiring Agency RMBS with attractive characteristics. In Q4 2025, the company purchased $3.2 billion in Agency MBS, primarily in Fannie Mae 5.0% to 6.5% coupons, which include call protection features. Such strategic acquisitions at favorable spread levels (an average of 108 basis points in 2025) are designed to optimize returns and manage risk, thereby contributing to revenue growth.
4. Beneficial Broader Market Conditions: A positively sloped yield curve and stable mortgage market conditions are expected to bolster the company's net income. These macroeconomic factors create a more conducive environment for mortgage REITs like Orchid Island Capital to generate income from their RMBS investments.

Share Repurchases

• Orchid Island Capital repurchased 6,257,826 shares at an aggregate cost of approximately $84.8 million through December 31, 2025.
• In December 2021, the Board of Directors approved an increase of 3,372,399 shares for the stock repurchase program, bringing the remaining authorization to 3,539,861 shares, representing about 10% of outstanding shares at that time.
• The company conducted substantial share repurchases, buying back over 14 million shares in just a few months during 2025.

Share Issuance

• Orchid Island Capital intends to continue utilizing equity distribution agreements to raise capital for its investment strategy.
• The company expanded its at-the-market (ATM) equity program, with authorization increasing from $350 million to $500 million by July 2025.
• Under the ATM program, Orchid Island Capital sold 34,517,584 shares for $266.5 million in gross proceeds, with $233.5 million remaining available as of July 2025.