Orchid Island Capital, Inc. (NYSE:ORC) ("Orchid” or the
"Company"), a real estate investment trust ("REIT"), today
announced results of operations for the three and twelve month
periods ended December 31, 2022.
Fourth Quarter 2022 Results
- Net income of $34.9 million, or $0.95 per common share, which
consists of:
- Net interest income of $2.4 million, or $0.06 per common
share
- Total expenses of $5.9 million, or $0.16 per common share
- Net realized and unrealized gains of $38.4 million, or $1.04
per common share, on RMBS and derivative instruments, including net
interest income on interest rate swaps
- Fourth quarter and full year total dividends declared and paid
of $0.48 and $2.475 per common share, respectively
- Book value per common share of $11.93 at December 31, 2022
- Total return of 8.67%, comprised of $0.48 dividend per common
share and $0.51 increase in book value per common share, divided by
beginning book value per common share
Other Financial Highlights
- Orchid maintained a strong liquidity position of $233.0 million
in cash and cash equivalents and unpledged RMBS, or 53% of
stockholder’s equity as of December 31, 2022
- Borrowing capacity in excess of December 31, 2022 outstanding
repurchase agreement balances of $3,378.5 million, spread across 20
active lenders
- Company to discuss results on Friday, February 24, 2023, at
10:00 AM ET
- Supplemental materials to be discussed on the call can be
downloaded from the investor relations section of the Company’s
website at https://ir.orchidislandcapital.com
Management Commentary
Commenting on the fourth quarter results, Robert E. Cauley,
Chairman and Chief Executive Officer, said, “As 2022 came to an end
the markets and the Federal Reserve’s (“Fed”) outlook for the
economy, inflation and the path of monetary policy began to
diverge. The seeds for the divergence were planted as the third
quarter came to an end and the Fed had finally succeeded in
convincing the market that they had much work to do in slowing the
economy and inflation and that the process would take longer than
the market had expected. In fact, the Fed was so successful at
convincing the market it would aggressively remove accommodation
and slow inflation that the market began to look beyond this step
in the process and instead focus on the ramifications of such
policy removal – namely a slowing of the economy. The change of
focus – or “pivot” – on the part of the market occurred in late
October/early November due to inflation data. The consumer price
index data for October and November were much lower than previous
months - although this data was revised higher in early February of
2023. The market interpreted this development as evidence that
inflation had peaked and was coming down quite quickly.
“As incoming data over the course of the fourth quarter of 2022
and early first quarter of 2023 appeared to be consistent with the
markets' thesis that inflation had peaked and the economy was
slowing, confidence grew that the Fed would need to pivot and start
to reduce monetary policy later in 2023. This led to a material
change in risk sentiment during the fourth quarter and risk assets
performed very well. The Agency RMBS market returns for 2022 were
negative – down 11.9%. However, the sector posted positive returns
for the fourth quarter of 2.1%, which was 110 basis points higher
than comparable duration swaps. The performance of the Agency RMBS
sector was not uniformly positive for the fourth quarter. Early in
the quarter U.S. Treasury yields reached their highest levels in
many years in late October of 2022. Agency RMBS spreads to
comparable duration U.S. Treasuries also reached their widest
levels since the great financial crisis, easily surpassing the
levels observed in March of 2020. As market sentiment turned
mid-quarter and risk appetite improved, Agency RMBS, like most
other asset classes, were viewed as very attractive. The sector’s
rebound was likely triggered by the extreme spread levels reached
in late October, and the rebound has continued into early 2023.
However, the absence of the largest of the traditional buyers of
the asset class – banks, and since March of 2020, the Fed, may
result in the sector recovering more slowly towards pre-pandemic
levels, if it can do so at all.
“For Orchid, our performance during the fourth quarter benefited
from our exposure to lower coupon, longer duration securities that
we owned throughout 2022. While such securities generate less
interest income, they have contributed significantly to our book
value performance over the last two months of 2022 and into 2023.
In conjunction with the Company’s short positions in lower coupon
TBAs we have been able to manage our risk to higher rates while
also capturing book value appreciation as the market has rallied
since late October, all the while maintaining an economic leverage
ratio on the low end of our typical range. We anticipate
maintaining these lower coupon holdings as a core position for the
time being and have added higher coupons with new capital and
pay-downs, while still maintaining a lower coupon bias. As always,
if market conditions change, we expect to adapt our positions
accordingly. With the incoming data and market reaction observed so
far in February this may indeed be occurring.”
Details of Fourth Quarter 2022 Results of Operations
The Company reported net income of $34.9 million for the three
month period ended December 31, 2022, compared with a net loss of
$44.6 million for the three month period ended December 31, 2021.
The Company decreased its Agency RMBS portfolio over the course of
2022, from $6.5 billion at December 31, 2021 to $3.5 billion at
December 31, 2022. Interest income on the portfolio in the fourth
quarter was down approximately $3.7 million from the third quarter
of 2022. The yield on our average Agency RMBS decreased from 3.99%
in the third quarter of 2022 to 3.79% for the fourth quarter of
2022, repurchase agreement borrowing costs increased from 2.48% for
the third quarter of 2022 to 3.63% for the fourth quarter of 2022,
and our net interest spread decreased from 1.51% in the third
quarter of 2022 to 0.16% in the fourth quarter of 2022.
Book value increased by $0.51 per share in the fourth quarter of
2022. The increase in book value reflects our net income of $0.95
per share and the dividend distribution of $0.48 per share. The
Company recorded net realized and unrealized gains of $1.04 per
share on Agency RMBS assets and derivative instruments, including
net interest income on interest rate swaps.
Details of Full Year 2022 Results of Operations
The Company reported a net loss of $258.5 million for the year
ended December 31, 2022, compared with a net loss of $64.8 million
for the year ended December 31, 2021. Interest income on the
portfolio in the year ended December 31, 2022 was approximately
$144.6 million and the yield on our average Agency RMBS was 3.45%.
Repurchase agreement interest expense was $61.7 million during 2022
with an average cost of 1.53%.
Prepayments
For the quarter ended December 31, 2022, Orchid received $63.9
million in scheduled and unscheduled principal repayments and
prepayments, which equated to a 3-month constant prepayment rate
(“CPR”) of approximately 5.0%. Prepayment rates on the two RMBS
sub-portfolios were as follows (in CPR):
Structured
PT RMBS
RMBS
Total
Three Months Ended
Portfolio (%)
Portfolio (%)
Portfolio (%)
December 31, 2022
4.9
6.0
5.0
September 30, 2022
6.1
10.4
6.5
June 30, 2022
8.3
13.7
9.4
March 31, 2022
8.1
19.5
10.7
December 31, 2021
9.0
24.6
11.4
September 30, 2021
9.8
25.1
12.4
June 30, 2021
10.9
29.9
12.9
March 31, 2021
9.9
40.3
12.0
Portfolio
The following tables summarize certain characteristics of
Orchid’s PT RMBS (as defined below) and structured RMBS as of
December 31, 2022 and December 31, 2021:
($ in thousands)
Weighted
Percentage
Average
of
Weighted
Maturity
Fair
Entire
Average
in
Longest
Asset Category
Value
Portfolio
Coupon
Months
Maturity
December 31, 2022
Fixed Rate RMBS
$
3,519,906
99.4
%
3.47
%
339
1-Nov-52
Interest-Only Securities
19,669
0.6
%
4.01
%
234
25-Jul-48
Inverse Interest-Only Securities
427
0.0
%
0.00
%
286
15-Jun-42
Total Mortgage Assets
$
3,540,002
100.0
%
3.46
%
336
1-Nov-52
December 31, 2021
Fixed Rate RMBS
$
6,298,189
96.7
%
2.93
%
342
1-Dec-51
Interest-Only Securities
210,382
3.2
%
3.40
%
263
25-Jan-52
Inverse Interest-Only Securities
2,524
0.1
%
3.75
%
300
15-Jun-42
Total Mortgage Assets
$
6,511,095
100.0
%
3.03
%
325
25-Jan-52
($ in thousands)
December 31, 2022
December 31, 2021
Percentage of
Percentage of
Agency
Fair Value
Entire Portfolio
Fair Value
Entire Portfolio
Fannie Mae
$
2,320,960
65.6
%
$
4,719,349
72.5
%
Freddie Mac
1,219,042
34.4
%
1,791,746
27.5
%
Total Portfolio
$
3,540,002
100.0
%
$
6,511,095
100.0
%
December 31, 2022
December 31, 2021
Weighted Average Pass-through Purchase
Price
$
106.41
$
107.19
Weighted Average Structured Purchase
Price
$
18.74
$
15.21
Weighted Average Pass-through Current
Price
$
91.46
$
105.31
Weighted Average Structured Current
Price
$
14.05
$
14.08
Effective Duration (1)
5.580
3.390
(1)
Effective duration of 5.580 indicates that
an interest rate increase of 1.0% would be expected to cause a
5.580% decrease in the value of the RMBS in the Company’s
investment portfolio at December 31, 2022. An effective duration of
3.390 indicates that an interest rate increase of 1.0% would be
expected to cause a 3.390% decrease in the value of the RMBS in the
Company’s investment portfolio at December 31, 2021. These figures
include the structured securities in the portfolio, but do not
include the effect of the Company’s funding cost hedges. Effective
duration quotes for individual investments are obtained from The
Yield Book, Inc.
Financing, Leverage and Liquidity
As of December 31, 2022, the Company had outstanding repurchase
obligations of approximately $3,378.4 million with a net weighted
average borrowing rate of 4.44%. These agreements were
collateralized by RMBS with a fair value, including accrued
interest, of approximately $3,524.1 million and cash pledged to
counterparties of approximately $13.3 million. The Company’s
adjusted leverage ratio, defined as repurchase agreements divided
by stockholders' equity, at December 31, 2022 was 7.7 to 1. At
December 31, 2022, the Company’s liquidity was approximately $233.0
million consisting of cash and cash equivalents and unpledged RMBS
(not including unsettled securities purchases). To enhance our
liquidity even further, we may pledge more of our structured RMBS
as part of a repurchase agreement funding, but retain the cash in
lieu of acquiring additional assets. In this way we can, at a
modest cost, retain higher levels of cash on hand and decrease the
likelihood we will have to sell assets in a distressed market in
order to raise cash. Below is a list of our outstanding borrowings
under repurchase obligations at December 31, 2022.
($ in thousands)
Weighted
Weighted
Total
Average
Average
Outstanding
% of
Borrowing
Amount
Maturity
Counterparty
Balances
Total
Rate
at Risk(1)
in Days
Mirae Asset Securities (USA) Inc.
312,989
9.1
%
4.23
%
$
14,741
76
RBC Capital Markets, LLC
274,790
8.1
%
4.50
%
8,379
29
Daiwa Capital Markets America, Inc.
251,854
7.5
%
4.48
%
10,024
17
ED&F Man Capital Markets Inc.
240,587
7.1
%
4.49
%
9,729
28
ING Financial Markets LLC
238,212
7.1
%
4.47
%
9,677
33
Cantor Fitzgerald & Co.
229,444
6.8
%
4.46
%
11,805
29
ABN AMRO Bank N.V.
227,888
6.7
%
4.48
%
5,672
13
J.P. Morgan Securities LLC
219,283
6.5
%
4.49
%
12,507
12
Merrill Lynch, Pierce, Fenner & Smith
Inc.
192,467
5.7
%
4.47
%
6,910
9
Citigroup Global Markets, Inc.
190,956
5.7
%
4.32
%
10,354
9
StoneX Financial Inc.
184,375
5.5
%
4.45
%
9,299
26
Mitsubishi UFJ Securities (USA), Inc.
178,394
5.3
%
4.36
%
5,603
21
ASL Capital Markets Inc.
165,172
4.9
%
4.50
%
9,075
35
Goldman Sachs & Co. LLC
124,821
3.7
%
4.53
%
7,944
26
Santander Bank, N.A.
115,477
3.4
%
4.39
%
5,749
24
Wells Fargo Bank, N.A.
95,366
2.8
%
4.46
%
5,071
12
BMO Capital Markets Corp.
77,708
2.3
%
4.37
%
4,365
23
South Street Securities, LLC
37,198
1.1
%
4.48
%
1,834
17
Lucid Cash Fund USG, LLC
18,703
0.6
%
4.38
%
883
12
Lucid Prime Fund, LLC
2,761
0.1
%
4.38
%
123
12
Total / Weighted Average
$
3,378,445
100.0
%
4.44
%
$
149,744
27
(1)
Equal to the sum of the fair value of
securities sold, accrued interest receivable and cash posted as
collateral (if any), minus the sum of repurchase agreement
liabilities, accrued interest payable and the fair value of
securities posted by the counterparties (if any).
Hedging
In connection with its interest rate risk management strategy,
the Company economically hedges a portion of the cost of its
repurchase agreement funding against a rise in interest rates by
entering into derivative financial instrument contracts. The
Company has not elected hedging treatment under U.S. generally
accepted accounting principles (“GAAP”) in order to align the
accounting treatment of its derivative instruments with the
treatment of its portfolio assets under the fair value option
election. As such, all gains or losses on these instruments are
reflected in earnings for all periods presented. At December 31,
2022, such instruments were comprised of U.S. Treasury note
(“T-Note”) futures contracts, interest rate swap agreements,
interest rate swaption agreements, interest rate caps and contracts
to sell to-be-announced ("TBA") securities.
The table below presents information related to the Company’s
T-Note futures contracts at December 31, 2022.
($ in thousands)
December 31, 2022
Average
Weighted
Weighted
Contract
Average
Average
Notional
Entry
Effective
Open
Expiration Year
Amount
Rate
Rate
Equity(1)
U.S. Treasury Note Futures Contracts
(Short Positions)(2)
March 2023 5-year T-Note futures (Mar 2023
- Mar 2028 Hedge Period)
$
750,500
4.20
%
4.22
%
$
(100
)
March 2023 10-year Ultra futures (Mar 2023
- Mar 2033 Hedge Period)
$
174,500
3.66
%
3.79
%
$
965
(1)
Open equity represents the cumulative
gains (losses) recorded on open futures positions from
inception.
(2)
5-Year T-Note futures contracts were
valued at a price of $107.93 at December 31, 2022. The contract
values of the short positions were $810.0 million at December 31,
2022. 10-Year Ultra futures contracts were valued at a price of
$118.28 at December 31, 2022. The contract value of the short
position was $206.4 million at December 31, 2022.
The table below presents information related to the Company’s
interest rate swap positions at December 31, 2022.
($ in thousands)
Average
Net
Fixed
Average
Estimated
Average
Notional
Pay
Receive
Fair
Maturity
Amount
Rate
Rate
Value
(Years)
Expiration > 3 to ≤ 5 years
$
500,000
0.84
%
4.75
%
$
56,764
3.7
Expiration > 5 years
900,000
1.70
%
4.23
%
105,638
6.6
$
1,400,000
1.39
%
4.41
%
$
162,402
5.6
The following table presents information related to our interest
rate swaption positions as of December 31, 2022.
($ in thousands)
Option
Underlying Swap
Weighted
Average
Weighted
Average
Average
Adjustable
Average
Fair
Months to
Notional
Fixed
Rate
Term
Expiration
Cost
Value
Expiration
Amount
Rate
(LIBOR)
(Years)
Payer Swaptions (long
positions)
≤ 1 year
$
36,685
$
21,253
9.6
$
1,250,000
4.09
%
3 Month
10.0
> 10 years
11,021
12,145
239.5
120,000
2.05
%
3 Month
10.0
$
47,706
$
33,398
29.8
$
1,370,000
3.91
%
3 Month
10.0
Payer Swaptions (short
positions)
≤ 1 year
$
(17,800
)
$
(5,982
)
3.6
$
(917,000
)
4.09
%
3 Month
10.0
The following table presents information related to our interest
cap positions as of December 31, 2022.
($ in thousands)
Net
Strike
Estimated
Notional
Swap
Curve
Fair
Expiration
Amount
Cost
Rate
Spread
Value
February 8, 2024
$
200,000
$
1,450
0.09
%
2Y10Y
$
1,119
The following table summarizes our contracts to sell TBA
securities as of December 31, 2022.
($ in thousands)
Notional
Net
Amount
Cost
Market
Carrying
Long (Short)(1)
Basis(2)
Value(3)
Value(4)
December 31, 2022
30-Year TBA securities:
2.00%
$
(175,000
)
$
(142,268
)
$
(143,145
)
$
(877
)
3.00%
(500,000
)
(440,644
)
(440,274
)
370
$
(675,000
)
$
(582,912
)
$
(583,419
)
$
(507
)
(1)
Notional amount represents the par value
(or principal balance) of the underlying Agency RMBS.
(2)
Cost basis represents the forward price to
be paid (received) for the underlying Agency RMBS.
(3)
Market value represents the current market
value of the TBA securities (or of the underlying Agency RMBS) as
of period-end.
(4)
Net carrying value represents the
difference between the market value and the cost basis of the TBA
securities as of period-end and is reported in derivative assets
(liabilities) at fair value in our balance sheets.
Dividends
In addition to other requirements that must be satisfied to
qualify as a REIT, we must pay annual dividends to our stockholders
of at least 90% of our REIT taxable income, determined without
regard to the deduction for dividends paid and excluding any net
capital gains. We intend to pay regular monthly dividends to our
stockholders and have declared the following dividends since our
February 2013 IPO.
(in thousands, except per share
amounts)
Year
Per Share Amount
Total
2013
$
6.975
$
4,662
2014
10.800
22,643
2015
9.600
38,748
2016
8.400
41,388
2017
8.400
70,717
2018
5.350
55,814
2019
4.800
54,421
2020
3.950
53,570
2021
3.900
97,601
2022
2.475
87,906
2023 YTD(1)
0.320
12,540
Totals
$
64.970
$
540,010
(1)
On January 11, 2023, the Company declared
a dividend of $0.16 per share to be paid on February 24, 2023. On
February 15, 2023, the Company declared a dividend of $0.16 per
share to be paid on March 29, 2023. The effect of these dividends
are included in the table above but are not reflected in the
Company’s financial statements as of December 31, 2022.
Book Value Per Share
The Company's book value per share at December 31, 2022 was
$11.93. The Company computes book value per share by dividing total
stockholders' equity by the total number of shares outstanding of
the Company's common stock. At December 31, 2022, the Company's
stockholders' equity was $438.8 million with 36,764,983 shares of
common stock outstanding.
Capital Allocation and Return on Invested Capital
The Company allocates capital to two RMBS sub-portfolios, the
pass-through RMBS portfolio, consisting of mortgage pass-through
certificates issued by Fannie Mae, Freddie Mac or Ginnie Mae (the
“GSEs”) and collateralized mortgage obligations (“CMOs”) issued by
the GSEs (“PT RMBS”), and the structured RMBS portfolio, consisting
of interest-only (“IO”) and inverse interest-only (“IIO”)
securities. As of September 30, 2022, approximately 85.4% of the
Company’s investable capital (which consists of equity in pledged
PT RMBS, available cash and unencumbered assets) was deployed in
the PT RMBS portfolio. At December 31, 2022, the allocation to the
PT RMBS portfolio increased to approximately 95.0%.
The table below details the changes to the respective
sub-portfolios during the quarter.
(in thousands)
Portfolio Activity for the
Quarter
Structured Security
Portfolio
Pass-Through
Interest-Only
Inverse Interest
Portfolio
Securities
Only Securities
Sub-total
Total
Market value - September 30,
2022
$
3,150,403
$
50,274
$
537
$
50,811
$
3,201,214
Securities purchased
381,991
-
-
-
381,991
Securities sold
-
(28,422
)
-
(28,422
)
(28,422
)
Losses on sales
-
(1,023
)
-
(1,023
)
(1,023
)
Return of investment
n/a
(933
)
38
(895
)
(895
)
Pay-downs
(62,670
)
n/a
-
n/a
(62,670
)
Discount accretion due to pay-downs
6,748
n/a
-
n/a
6,748
Mark to market gains (losses)
43,434
(227
)
(148
)
(375
)
43,059
Market value - December 31,
2022
$
3,519,906
$
19,669
$
427
$
20,096
$
3,540,002
The tables below present the allocation of capital between the
respective portfolios at December 31, 2022 and September 30, 2022,
and the return on invested capital for each sub-portfolio for the
three month period ended December 31, 2022.
($ in thousands)
Capital Allocation
Structured Security
Portfolio
Pass-Through
Interest-Only
Inverse Interest
Portfolio
Securities
Only Securities
Sub-total
Total
December 31, 2022
Market value
$
3,519,906
$
19,669
$
427
$
20,096
$
3,540,002
Cash
237,219
-
-
-
237,219
Borrowings(1)
(3,378,445
)
-
-
-
(3,378,445
)
Total
$
378,680
$
19,669
$
427
$
20,096
$
398,776
% of Total
95.0
%
4.9
%
0.1
%
5.0
%
100.0
%
September 30, 2022
Market value
$
3,150,403
$
50,274
$
537
$
50,811
$
3,201,214
Cash
280,952
-
-
-
280,952
Borrowings(2)
(3,133,861
)
-
-
-
(3,133,861
)
Total
$
297,494
$
50,274
$
537
$
50,811
$
348,305
% of Total
85.4
%
14.4
%
0.2
%
14.6
%
100.0
%
(1)
At December 31, 2022, there were
outstanding repurchase agreement balances of $15.5 million secured
by IO securities and $0.4 million secured by IIO securities. We
entered into these arrangements to generate additional cash
available to meet margin calls on PT RMBS; therefore, we have not
considered these balances to be allocated to the structured
securities strategy.
(2)
At September 30, 2022, there were
outstanding repurchase agreement balances of $41.0 million secured
by IO securities and $0.5 million secured by IIO securities. We
entered into these arrangements to generate additional cash
available to meet margin calls on PT RMBS; therefore, we have not
considered these balances to be allocated to the structured
securities strategy.
The return on invested capital in the PT RMBS and structured
RMBS portfolios was approximately 12.3% and (2.0)%, respectively,
for the fourth quarter of 2022. The combined portfolio generated a
return on invested capital of approximately 10.9%.
($ in thousands)
Returns for the Quarter Ended
December 31, 2022
Structured Security
Portfolio
Pass-Through
Interest-Only
Inverse Interest
Portfolio
Securities
Only Securities
Sub-total
Total
Income (net of borrowing cost)
$
1,692
$
594
$
100
$
694
$
2,386
Realized and unrealized gains (losses)
50,446
(1,250
)
(148
)
(1,398
)
49,048
Derivative losses (gains)
(10,658
)
n/a
n/a
n/a
(10,658
)
Total Return
$
41,480
$
(656
)
$
(48
)
$
(704
)
$
40,776
Beginning Capital Allocation
$
297,494
$
50,274
$
537
$
50,811
$
348,305
Return on Invested Capital for the
Quarter(1)
13.9
%
(1.3
)%
(8.9
)%
(1.4
)%
11.7
%
Average Capital Allocation(2)
$
338,087
$
34,972
$
482
$
35,454
$
373,541
Return on Average Invested Capital for the
Quarter(3)
12.3
%
(1.9
)%
(10.0
)%
(2.0
)%
10.9
%
(1)
Calculated by dividing the Total Return by
the Beginning Capital Allocation, expressed as a percentage.
(2)
Calculated using two data points, the
Beginning and Ending Capital Allocation balances.
(3)
Calculated by dividing the Total Return by
the Average Capital Allocation, expressed as a percentage.
Stock Offerings
On October 29, 2021, we entered into an equity distribution
agreement (the “October 2021 Equity Distribution Agreement”) with
four sales agents pursuant to which we may offer and sell, from
time to time, up to an aggregate amount of $250,000,000 of shares
of our common stock in transactions that are deemed to be “at the
market” offerings and privately negotiated transactions. Through
December 31, 2022, we issued a total of 7,052,188 shares under the
October 2021 Equity Distribution Agreement for aggregate gross
proceeds of approximately $119.6 million, and net proceeds of
approximately $117.6 million, after commissions and fees.
Subsequent to December 31, 2022 and through February 23, 2023, we
issued a total of 2,690,000 shares under the October 2021 Equity
Distribution Agreement for aggregate gross proceeds of
approximately $32.2 million, and net proceeds of approximately
$31.7 million, after commissions and fees.
Stock Repurchase Program
On July 29, 2015, the Company’s Board of Directors authorized
the repurchase of up to 400,000 shares of our common stock. The
timing, manner, price and amount of any repurchases is determined
by the Company in its discretion and is subject to economic and
market conditions, stock price, applicable legal requirements and
other factors. The authorization does not obligate the Company to
acquire any particular amount of common stock and the program may
be suspended or discontinued at the Company’s discretion without
prior notice. On February 8, 2018, the Board of Directors approved
an increase in the stock repurchase program for up to an additional
904,564 shares of the Company’s common stock. Coupled with the
156,751 shares remaining from the original 400,000 share
authorization, the increased authorization brought the total
authorization to 1,061,316 shares, representing 10% of the
Company’s then outstanding share count. On December 9, 2021, the
Board of Directors approved an increase in the number of shares of
the Company’s common stock available in the stock repurchase
program for up to an additional 3,372,399 shares, bringing the
remaining authorization under the stock repurchase program to
3,539,861 shares, representing approximately 10% of the Company’s
then outstanding shares of common stock. On October 12, 2022, the
Board of Directors approved an increase in the number of shares of
the Company’s common stock available in the stock repurchase
program for up to an additional 4,300,000 shares, bringing the
remaining authorization under the stock repurchase program to
6,183,601 shares, representing approximately 18% of the Company’s
then outstanding shares of common stock. This stock repurchase
program has no termination date.
From the inception of the stock repurchase program through
December 31, 2022, the Company repurchased a total of 3,675,572
shares at an aggregate cost of approximately $64.8 million,
including commissions and fees, for a weighted average price of
$17.63 per share. During the year ended December 31, 2022, the
Company repurchased a total of 2,538,470 shares at an aggregate
cost of approximately $24.5 million, including commissions and
fees, for a weighted average price of $9.63 per share. Subsequent
to December 31, 2022, the Company repurchased a total of 373,041
shares at an aggregate cost of approximately $4.0 million,
including commissions and fees, for a weighted average price of
$10.62 per share.
Earnings Conference Call Details
An earnings conference call and live audio webcast will be
hosted Friday, February 24, 2023, at 10:00 AM ET. The conference
call may be accessed by dialing toll free (888) 510-2356. The
conference passcode is 8493186. The supplemental materials may be
downloaded from the investor relations section of the Company’s
website at https://ir.orchidislandcapital.com. A live audio webcast
of the conference call can be accessed via the investor relations
section of the Company’s website at
https://ir.orchidislandcapital.com, and an audio archive of the
webcast will be available until March 26, 2023.
About Orchid Island Capital, Inc.
Orchid Island Capital, Inc. is a specialty finance company that
invests on a leveraged basis in Agency RMBS. Our investment
strategy focuses on, and our portfolio consists of, two categories
of Agency RMBS: (i) traditional pass-through Agency RMBS, such as
mortgage pass-through certificates, and CMOs issued by the GSEs,
and (ii) structured Agency RMBS, such as IOs, IIOs and principal
only securities, among other types of structured Agency RMBS.
Orchid is managed by Bimini Advisors, LLC, a registered investment
adviser with the Securities and Exchange Commission.
Forward Looking Statements
Statements herein relating to matters that are not historical
facts, including, but not limited to statements regarding interest
rates, inflation, liquidity, pledging of our structured RMBS,
funding levels and spreads, prepayment speeds, portfolio
positioning and repositioning, hedging levels, leverage ratio,
dividends, growth, the supply and demand for Agency RMBS and the
performance of the Agency RMBS sector generally, the effect of
actual or expected actions of the U.S. government, including the
Fed, market expectations, future opportunities and prospects of the
Company, the stock repurchase program and general economic
conditions, are forward-looking statements as defined in the
Private Securities Litigation Reform Act of 1995. The reader is
cautioned that such forward-looking statements are based on
information available at the time and on management's good faith
belief with respect to future events, and are subject to risks and
uncertainties that could cause actual performance or results to
differ materially from those expressed in such forward-looking
statements. Important factors that could cause such differences are
described in Orchid Island Capital, Inc.'s filings with the
Securities and Exchange Commission, including its most recent
Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
Orchid Island Capital, Inc. assumes no obligation to update
forward-looking statements to reflect subsequent results, changes
in assumptions or changes in other factors affecting
forward-looking statements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230223005701/en/
Orchid Island Capital, Inc. Robert E. Cauley, 772-231-1400
Chairman and Chief Executive Officer
https://ir.orchidislandcapital.com
Orchid Island Capital (NYSE:ORC)
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