In This Article:
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Net Income: $17.3 million for the third quarter of 2024.
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Shareholders' Equity: Increased from $555.9 million to $656 million.
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Advisory Service Revenues: Approximately $3.3 million, a 4% increase over the second quarter.
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Net Interest Income: $0.3 million for the quarter; $1.04 million year-to-date.
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RMBS Portfolio Growth: Increased by approximately 28% year-to-date and 37% since June 30th, 2024.
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Funding Costs: Varied slightly between 5.5% and 5.6% for the past four quarters.
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Agency RMBS Index Return: 4.7% for the quarter.
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Net Income Before Taxes: $0.8 million for the quarter; $1.25 million for the nine-month period ended September 30th, 2024.
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Tax Provisions: $0.5 million for the quarter; $1.1 million for the nine-month period ended September 30th, 2024.
Release Date: November 01, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Bimini Capital Management Inc (BMNM) reported a net income of $17.3 million for the third quarter of 2024.
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Shareholders' equity increased significantly from $555.9 million to $656 million.
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The RMBS portfolio at Royal Palm has grown by approximately 28% year-to-date and 37% since June 30th, 2024.
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Net interest income for the year-to-date period was $1.04 million, up from $0.88 million for the first nine months of 2023.
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The company reported a net income before taxes of $0.8 million for the quarter, a positive turnaround from a net loss before taxes of $0.2 million in the second quarter of 2024.
Negative Points
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Advisory service revenues are down 11% year-to-date despite a 4% increase over the second quarter.
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Orchid's capital base declined over the course of 2023 and the decline has not been fully reversed.
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Funding costs have remained high, varying slightly between 5.5% and 5.6% for the past four quarters.
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The market's anticipation of further Federal Reserve rate cuts may not align with actual economic conditions, potentially affecting future financial performance.
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Mortgages have underperformed their hedges as interest rates have risen, impacting returns.
Q & A Highlights
Q: Can you provide an overview of the economic conditions and their impact on Bimini Capital Management's performance this quarter? A: Robert Cauley, Chairman and CEO, explained that the Federal Reserve's tight monetary policy has started to impact inflation and labor market imbalances. Inflation is nearing the 2% target, and hiring and wages are slowing. However, economic growth and consumer spending remain strong. The Fed reduced the overnight funding rate by 50 basis points, but recent data suggests the economy might not be weakening as expected, which could affect future rate cuts.