Orchid Island Capital Inc
NYSE:ORC
Orchid Island Capital Inc
Orchid Island Capital, Inc. operates as a specialty finance company, investing in residential mortgage-backed securities (RMBS). The company is headquartered in Vero Beach, Florida and currently employs 0 full-time employees. The company went IPO on 2013-02-13. The Company’s investment strategy focuses on two categories of Agency RMBS: traditional pass-through Agency RMBS, such as mortgage pass through certificates and collateralized mortgage obligations (CMOs) issued by the GSEs; and structured Agency RMBS, such as interest only securities (IOs), inverse interest only securities (IIOs) and principal only securities (POs), among other types of structured Agency RMBS. Its objective is to provide risk-adjusted total returns over the long term through a combination of capital appreciation and the payment of regular monthly distributions. Its portfolio of PT RMBS is comprised of adjustable-rate RMBS, fixed-rate RMBS and hybrid adjustable-rate RMBS. Its PT RMBS certificates include fixed-rate mortgages and fixed-rate CMOs. Its Structured RMBS Certificates include interest-only securities and inverse interest-only securities.
Orchid Island Capital, Inc. operates as a specialty finance company, investing in residential mortgage-backed securities (RMBS). The company is headquartered in Vero Beach, Florida and currently employs 0 full-time employees. The company went IPO on 2013-02-13. The Company’s investment strategy focuses on two categories of Agency RMBS: traditional pass-through Agency RMBS, such as mortgage pass through certificates and collateralized mortgage obligations (CMOs) issued by the GSEs; and structured Agency RMBS, such as interest only securities (IOs), inverse interest only securities (IIOs) and principal only securities (POs), among other types of structured Agency RMBS. Its objective is to provide risk-adjusted total returns over the long term through a combination of capital appreciation and the payment of regular monthly distributions. Its portfolio of PT RMBS is comprised of adjustable-rate RMBS, fixed-rate RMBS and hybrid adjustable-rate RMBS. Its PT RMBS certificates include fixed-rate mortgages and fixed-rate CMOs. Its Structured RMBS Certificates include interest-only securities and inverse interest-only securities.
Strong Earnings: Orchid Island Capital reported net income of $103.4 million for Q4 2025, equating to $0.62 per share, up from $0.53 in Q3.
Book Value Growth: Book value per share increased to $7.54 from $7.33 in the previous quarter, reflecting solid portfolio performance.
Dividends Steady: The company maintained a quarterly dividend of $0.36, consistent with the last several years, and distributed nearly all taxable income.
Portfolio Expansion: MBS portfolio grew to $10.6 billion by year-end, up about 27% quarter-over-quarter, with equity also doubling year-over-year.
Expense Management: Expense ratio dropped to 1.7% by year-end 2025, with almost all increase due to management fees; non-management expenses grew only marginally.
Favorable Funding Costs: Average repo rate declined from 4.33% to 3.98% in Q4, with further improvement seen after quarter-end.
Outlook Positive: Management expects the portfolio to perform well in a continued stable or tightening mortgage spread environment, citing a benign rate backdrop and disciplined risk management.
