In This Article:
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Net Income: $5.6 million for the fourth quarter of 2024.
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Shareholders' Equity: Increased from $656 million to $668.5 million over the third quarter.
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Advisory Service Revenue: Increased slightly to $3.4 million from $3.3 million in the third quarter.
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Net Interest Income: $0.3 million from the investment portfolio at Royal Palm.
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Dividends on Orchid Stock: $0.2 million.
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Mark to Market Gains and Losses: Net income of $0.1 million from MBS portfolio, hedge positions, and shares of Orchid.
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MBS Portfolio Increase: $4 million during the fourth quarter of 2024 and $29.5 million for the year.
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Gross Interest Income: Increased from $0.6 million in Q1 2023 to $1.7 million in Q4 2024.
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Repurchase Agreement Related Interest Expense: Increased from $0.5 million in Q1 2023 to $1.4 million in Q4 2024.
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Net Income Before Taxes: $0.5 million for Q4 2024 versus a net loss before taxes of $0.8 million for Q3 2024.
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Net Loss: $1.5 million for the fourth quarter of 2024 due to a net tax provision of $2.1 million.
Release Date: March 07, 2025
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 fourth quarter 2024 net income of $5.6 million.
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Shareholders' equity increased from $656 million to $668.5 million over the third quarter.
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Advisory service revenue increased slightly to $3.4 million compared to $3.3 million in the previous quarter.
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The MBS portfolio increased by $4 million during the fourth quarter and by $29.5 million for the year.
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Net interest income from the portfolio has increased, benefiting from reductions in short-term rates by the Federal Reserve.
Negative Points
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Market expectations for additional reductions in the Fed funds rate declined over the fourth quarter and into 2025.
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Consumer confidence measures have plummeted, and interest rates have declined as rate volatility increased.
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The company recorded a net loss for the fourth quarter of 2024 of $1.5 million due to a net tax provision of $2.1 million.
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Repurchase agreement related interest expense increased from $0.5 million in Q1 2023 to $1.4 million in Q4 2024.
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The economic outlook continues to change frequently, creating uncertainty for future performance.
Q & A Highlights
Q: Can you provide an overview of the economic outlook and its impact on Bimini Capital Management's strategy? A: Robert Cauley, Chairman and CEO, explained that the economic outlook has shifted due to various factors, including the Trump administration's policy objectives. Growth appears to be slowing, inflation remains a concern, and consumer confidence has declined. Interest rates have decreased, and rate volatility has increased. The company is adjusting its strategy accordingly, with expectations for additional Federal Reserve easing rising.