Orchid Island Capital Announces March 2026 Dividend and RMBS Portfolio Update

Key Points:

• Monthly Dividend Declared: Orchid Island Capital, Inc. (“Orchid Island” or the “Company”) has announced a monthly dividend of \$0.12 per share for March 2026. The dividend will be paid on April 29, 2026 to holders of record as of March 31, 2026, with an ex-dividend date of March 31, 2026.
• Portfolio Update: The Company provided a comprehensive update on its Agency RMBS portfolio as of February 28, 2026.
• Share Count Growth: The number of common shares outstanding increased from 181,985,900 as of December 31, 2025, to 195,511,115 as of March 18, 2026—a significant jump in just over two months.
• Next Dividend Announcement: The next dividend update is expected on April 15, 2026.

Detailed Portfolio Insights (February 28, 2026):

• Agency Composition:
  • Fannie Mae RMBS: \$5.61 billion (50.3% of portfolio)
  • Freddie Mac RMBS: \$5.55 billion (49.8% of portfolio)
  • Other Agencies (e.g., Ginnie Mae): Not explicitly listed but likely included in the remainder.
• Portfolio Segmentation:
  • Whole Pool Assets: 94.5% of the portfolio
  • Non-Whole Pool Assets: 5.5% of the portfolio, valued at \$619.4 million
• Structured RMBS: Total value: \$87.1 million
• Interest-Only (IO) Securities: Value: \$71.3 million (IO 30yr 4.0: \$15.8 million)

Repurchase Agreements & Counterparty Exposure:

• Largest Repo Counterparties:
  • Citigroup Global Markets Inc: \$510.5 million (4.8%)
  • Bank of Nova Scotia: \$492.6 million
  • Many other major financial institutions, representing robust funding relationships.
• Total Hedge Notional: (\$7.19 billion) in hedges, including SOFR futures, Treasury futures, and swap futures, indicating significant interest rate risk management activity.
• Market Value of Short Position: \$70.0 million as of February 28, 2026.

Risk and Regulatory Compliance:

• The Company remains in compliance with the Investment Company Act of 1940 Whole Pool test, with 94.5% of assets qualifying as “whole pool.”

Important Shareholder Considerations & Potential Price Sensitivities:

• Dividend Sustainability: The \$0.12 per share monthly dividend represents an ongoing, significant yield, but the Company cautions that there is no established minimum distribution payment level and future distributions are not guaranteed. Given the increase in outstanding shares, investors should consider the potential for dilution and its impact on per-share metrics.
• Share Issuance: The substantial rise in shares outstanding (by more than 13 million shares, or about 7%, since December 31, 2025) may signal capital raises, equity offerings, or the use of shares for corporate purposes, which can be dilutive to existing shareholders if not accretive.
• Portfolio Leverage and Interest Rate Risk: The heavy use of repurchase agreements and a large hedging portfolio demonstrate substantial leverage and proactive risk management. However, these strategies also expose the Company to counterparty and interest rate volatility risks, which can significantly impact book value and, consequently, the share price.
• Forward-Looking Statements: The Company underscores that its forward-looking statements, including those about distributions and portfolio performance, are based on current expectations and are subject to significant risks—especially those detailed in the Company’s most recent 10-K filing.

About Orchid Island Capital, Inc.

Orchid Island is a specialty finance company that invests, on a leveraged basis, in Agency RMBS. The portfolio is managed by Bimini Advisors, LLC, a registered investment adviser. The Company focuses on both traditional pass-through Agency RMBS (such as those issued by Fannie Mae, Freddie Mac, or Ginnie Mae) and structured Agency RMBS.

Forward-Looking Statements Disclaimer

This article contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These statements are based on current expectations and assumptions, but actual results may differ materially. Investors are cautioned not to place undue reliance on these statements. Factors that could affect outcomes are detailed in the “Risk Factors” section of Orchid Island Capital’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025. The Company is not obligated to update or revise any forward-looking statements except as required by law.

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