Orchid Island Capital reported net income of $89.2 million, or $0.44 per common share, for the quarter ended June 30, 2026, reversing a year-ago loss and driving a $0.14 increase in book value to $7.22 per share. The company recorded net interest income of $60.0 million and net realized and unrealized gains of $36.0 million on RMBS and derivatives, while paying a $0.30 per-share dividend for the quarter. Liquidity remained strong with approximately $776.0 million in cash and unpledged securities and $11.1 billion of repurchase agreement borrowings across 33 lenders.

Financial Highlights

  • Net income: $89.2 million for the three months ended June 30, 2026; $69.237 million for the six months ended June 30, 2026.
  • Net income per common share: $0.44 for the three months ended June 30, 2026; basic and diluted $0.35 for the six months ended June 30, 2026.
  • Net interest income: $60.0 million for the quarter; $117.035 million for the six months ended June 30, 2026.
  • Net realized and unrealized gains (RMBS & derivatives): $36.0 million for the quarter; losses (gains) on RMBS and derivative contracts of $(33.638) million for the six months.
  • Balance sheet and per-share metrics: Book value per common share $7.22 at June 30, 2026; total stockholders' equity $1,441.3 million; common shares outstanding 199,603,438.

Business Highlights

  • Portfolio expanded: average Agency RMBS portfolio increased by approximately $0.45 billion during Q2 2026; total mortgage assets fair value $11.54 billion at June 30, 2026.
  • Hedging and risk management: maintained a mix of futures, interest rate swaps, swaptions and TBA contracts to economically hedge interest-rate funding cost; effective portfolio duration 3.180 at June 30, 2026 (up from 2.513 at year-end 2025).
  • Funding and counterparty diversification: $11.087 billion outstanding repurchase agreements with a net weighted average borrowing rate of 3.77% across 33 active lenders; collateral fair value ~ $11.5 billion and cash pledged ~$111.5 million.
  • Liquidity and capital activity: liquidity of approximately $776.0 million in cash, cash equivalents and unpledged securities; continued equity issuances under the October 2025 program with $360.9 million gross proceeds since inception and $137.7 million in gross proceeds in the six months ended June 30, 2026.
  • Capital return programs: declared and paid a $0.30 per-share dividend for Q2 2026 and maintained an expanded stock repurchase authorization (remaining authorization 26,612,580 shares as of July 23, 2026); repurchased 1,106,557 shares in Q2 2026 at an average price of $6.64.

Original SEC Filing:

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