|
|||
Bimini Capital Management, Inc.
|
|||
(Exact name of registrant as specified in its charter)
|
|||
Maryland
|
72-1571637
|
||
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
Large accelerated filer
|
☐
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
¨
(Do not check if a smaller reporting company)
|
Smaller reporting company
|
☒
|
|
|
Emerging growth company
|
☐
|
Title of each Class
|
Latest Practicable Date
|
Shares Outstanding
|
|||
Class A Common Stock, $0.001 par value
|
May 10, 2019
|
12,708,555
|
|||
Class B Common Stock, $0.001 par value
|
May 10, 2019
|
31,938
|
|||
Class C Common Stock, $0.001 par value
|
May 10, 2019
|
31,938
|
Page
|
||||
PART I. FINANCIAL INFORMATION
|
||||
ITEM 1. Financial Statements
|
1
|
|||
Condensed Consolidated Balance Sheets (unaudited)
|
1
|
|||
Condensed Consolidated Statements of Operations (unaudited)
|
2
|
|||
Condensed Consolidated Statement of Stockholders’ Equity (unaudited)
|
3
|
|||
Condensed Consolidated Statements of Cash Flows (unaudited)
|
4
|
|||
Notes to Condensed Consolidated Financial Statements
|
5
|
|||
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
24
|
|||
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk
|
44
|
|||
ITEM 4. Controls and Procedures
|
44
|
|||
PART II. OTHER INFORMATION
|
||||
ITEM 1. Legal Proceedings
|
45
|
|||
ITEM 1A. Risk Factors
|
45
|
|||
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds
|
45
|
|||
ITEM 3. Defaults Upon Senior Securities
|
45
|
|||
ITEM 4. Mine Safety Disclosures
|
45
|
|||
ITEM 5. Other Information
|
45
|
|||
ITEM 6. Exhibits
|
56
|
|||
SIGNATURES
|
47
|
(in thousands)
|
||||||||
March 31, 2019
|
December 31, 2018
|
|||||||
Cash and cash equivalents
|
$
|
5,003,253
|
$
|
4,947,801
|
||||
Restricted cash
|
1,783,440
|
1,292,687
|
||||||
Total cash, cash equivalents and restricted cash
|
$
|
6,786,693
|
$
|
6,240,488
|
·
|
One-twelfth of 1.5% of the first $250 million of Orchid’s month-end equity, as defined in the management agreement,
|
·
|
One-twelfth of 1.25% of Orchid’s month-end equity that is greater than $250 million and less than or equal to $500 million, and
|
·
|
One-twelfth of 1.00% of Orchid’s month-end equity that is greater than $500 million.
|
(in thousands)
|
||||||||
2019
|
2018
|
|||||||
Management fee
|
$
|
1,285
|
$
|
1,712
|
||||
Allocated overhead
|
322
|
381
|
||||||
Total
|
$
|
1,607
|
$
|
2,093
|
(in thousands)
|
||||||||
March 31, 2019
|
December 31, 2018
|
|||||||
Fixed-rate MBS
|
$
|
209,262
|
$
|
209,675
|
||||
Interest-Only MBS
|
1,703
|
2,021
|
||||||
Inverse Interest-Only MBS
|
676
|
728
|
||||||
Total
|
$
|
211,641
|
$
|
212,424
|
($ in thousands)
|
||||||||||||||||||||
OVERNIGHT
|
BETWEEN 2
|
BETWEEN 31
|
GREATER
|
|||||||||||||||||
(1 DAY OR
|
AND
|
AND
|
THAN
|
|||||||||||||||||
LESS)
|
30 DAYS
|
90 DAYS
|
90 DAYS
|
TOTAL
|
||||||||||||||||
March 31, 2019
|
||||||||||||||||||||
Fair value of securities pledged, including accrued
|
||||||||||||||||||||
interest receivable
|
$
|
1,844
|
$
|
97,966
|
$
|
112,534
|
$
|
-
|
$
|
212,344
|
||||||||||
Repurchase agreement liabilities associated with
|
||||||||||||||||||||
these securities
|
$
|
1,374
|
$
|
91,861
|
$
|
105,911
|
$
|
-
|
$
|
199,146
|
||||||||||
Net weighted average borrowing rate
|
2.99
|
%
|
2.76
|
%
|
2.66
|
%
|
-
|
2.71
|
%
|
|||||||||||
December 31, 2018
|
||||||||||||||||||||
Fair value of securities pledged, including accrued
|
||||||||||||||||||||
interest receivable
|
$
|
-
|
$
|
107,876
|
$
|
105,251
|
$
|
-
|
$
|
213,127
|
||||||||||
Repurchase agreement liabilities associated with
|
||||||||||||||||||||
these securities
|
$
|
-
|
$
|
101,327
|
$
|
99,069
|
$
|
-
|
$
|
200,396
|
||||||||||
Net weighted average borrowing rate
|
-
|
2.56
|
%
|
2.56
|
%
|
-
|
2.56
|
%
|
($ in thousands)
|
||||||||||||
% of
|
Weighted
|
|||||||||||
Stockholders'
|
Average
|
|||||||||||
Amount
|
Equity
|
Maturity
|
||||||||||
Repurchase Agreement Counterparties
|
at Risk
|
at Risk
|
(in Days)
|
|||||||||
March 31, 2019
|
||||||||||||
ED&F Man Capital Markets Inc.
|
$
|
4,564
|
14.9
|
%
|
25
|
|||||||
Mirae Asset Securities (USA) Inc.
|
3,418
|
11.2
|
%
|
43
|
||||||||
December 31, 2018
|
||||||||||||
ED&F Man Capital Markets Inc.
|
$
|
4,037
|
13.9
|
%
|
17
|
|||||||
Mirae Asset Securities (USA) Inc.
|
3,506
|
12.1
|
%
|
40
|
(in thousands)
|
|||||||||
Derivative Instruments and Related Accounts
|
Balance Sheet Location
|
March 31, 2019
|
December 31, 2018
|
||||||
Liabilities
|
|||||||||
TBA Securities
|
Other liabilities
|
$
|
1,064
|
$
|
938
|
||||
Total derivative liabilities, at fair value
|
$
|
1,064
|
$
|
938
|
|||||
Margin Balances Posted to (from) Counterparties
|
|||||||||
Futures contracts
|
Restricted cash
|
$
|
616
|
$
|
520
|
||||
TBA securities
|
Restricted cash
|
1,167
|
543
|
||||||
Total margin balances on derivative contracts
|
$
|
1,783
|
$
|
1,063
|
($ in thousands)
|
||||||||||||||||
As of March 31, 2019
|
||||||||||||||||
Repurchase Agreement Funding Hedges
|
||||||||||||||||
Average
|
Weighted
|
Weighted
|
||||||||||||||
Contract
|
Average
|
Average
|
||||||||||||||
Notional
|
Entry
|
Effective
|
Open
|
|||||||||||||
Expiration Year
|
Amount
|
Rate
|
Rate
|
Equity
(1)
|
||||||||||||
2019
|
$
|
133,333
|
2.63
|
%
|
2.47
|
%
|
$
|
(160
|
)
|
|||||||
2020
|
150,000
|
2.84
|
%
|
2.21
|
%
|
(947
|
)
|
|||||||||
2021
|
100,000
|
2.80
|
%
|
2.13
|
%
|
(669
|
)
|
|||||||||
Total / Weighted Average
|
$
|
127,273
|
2.77
|
%
|
2.26
|
%
|
$
|
(1,776
|
)
|
($ in thousands)
|
||||||||||||||||
As of March 31, 2019
|
||||||||||||||||
Junior Subordinated Debt Funding Hedges
|
||||||||||||||||
Average
|
Weighted
|
Weighted
|
||||||||||||||
Contract
|
Average
|
Average
|
||||||||||||||
Notional
|
Entry
|
Effective
|
Open
|
|||||||||||||
Expiration Year
|
Amount
|
Rate
|
Rate
|
Equity
(1)
|
||||||||||||
2019
|
$
|
26,000
|
1.68
|
%
|
2.48
|
%
|
$
|
157
|
||||||||
2020
|
19,500
|
1.92
|
%
|
2.23
|
%
|
60
|
||||||||||
Total / Weighted Average
|
$
|
22,286
|
1.80
|
%
|
2.35
|
%
|
$
|
217
|
($ in thousands)
|
||||||||||||||||
As of December 31, 2018
|
||||||||||||||||
Repurchase Agreement Funding Hedges
|
||||||||||||||||
Average
|
Weighted
|
Weighted
|
||||||||||||||
Contract
|
Average
|
Average
|
||||||||||||||
Notional
|
Entry
|
Effective
|
Open
|
|||||||||||||
Expiration Year
|
Amount
|
Rate
|
Rate
|
Equity
(1)
|
||||||||||||
2019
|
$
|
125,000
|
2.56
|
%
|
2.67
|
%
|
$
|
139
|
||||||||
2020
|
150,000
|
2.84
|
%
|
2.49
|
%
|
(523
|
)
|
|||||||||
2021
|
100,000
|
2.80
|
%
|
2.46
|
%
|
(346
|
)
|
|||||||||
Total / Weighted Average
|
$
|
125,000
|
2.74
|
%
|
2.54
|
%
|
$
|
(730
|
)
|
($ in thousands)
|
||||||||||||||||
As of December 31, 2018
|
||||||||||||||||
Junior Subordinated Debt Funding Hedges
|
||||||||||||||||
Average
|
Weighted
|
Weighted
|
||||||||||||||
Contract
|
Average
|
Average
|
||||||||||||||
Notional
|
Entry
|
Effective
|
Open
|
|||||||||||||
Expiration Year
|
Amount
|
Rate
|
Rate
|
Equity
(1)
|
||||||||||||
2019
|
$
|
26,000
|
1.63
|
%
|
2.68
|
%
|
$
|
271
|
||||||||
2020
|
26,000
|
1.95
|
%
|
2.49
|
%
|
142
|
||||||||||
2021
|
26,000
|
2.22
|
%
|
2.46
|
%
|
61
|
||||||||||
Total / Weighted Average
|
$
|
26,000
|
1.93
|
%
|
2.54
|
%
|
$
|
474
|
(1)
|
Open equity represents the cumulative gains (losses) recorded on open futures positions from inception.
|
($ in thousands)
|
|||||||||
Notional
|
Net
|
||||||||
Amount
|
Cost
|
Market
|
Carrying
|
||||||
Long (Short)
(1)
|
Basis
(2)
|
Value
(3)
|
Value
(4)
|
||||||
March 31, 2019
|
|||||||||
30-Year TBA Securities:
|
|||||||||
3.0%
|
$
|
(50,000)
|
$
|
(48,719)
|
$
|
(49,783)
|
$
|
(1,064)
|
|
December 31, 2018
|
|||||||||
30-Year TBA Securities:
|
|||||||||
3.0%
|
$
|
(50,000)
|
$
|
(47,844)
|
$
|
(48,782)
|
$
|
(938)
|
(1)
|
Notional amount represents the par value (or principal balance) of the underlying Agency MBS.
|
(2)
|
Cost basis represents the forward price to be paid (received) for the underlying Agency MBS.
|
(3)
|
Market value represents the current market value of the TBA securities (or of the underlying Agency MBS) as of period-end.
|
(4)
|
Net carrying value represents the difference between the market value and the cost basis of the TBA securities as of period-end and
is reported in derivative assets (liabilities), at fair value in our consolidated balance sheets.
|
(in thousands)
|
||||||||
2019
|
2018
|
|||||||
Eurodollar futures contracts (short positions)
|
||||||||
Repurchase agreement funding hedges
|
$
|
(969
|
)
|
$
|
1,090
|
|||
Junior subordinated debt funding hedges
|
(220
|
)
|
415
|
|||||
T-Note futures contracts (short positions)
|
||||||||
Repurchase agreement funding hedges
|
-
|
759
|
||||||
Net TBA securities
|
(1,068
|
)
|
(523
|
)
|
||||
(Losses) gains on derivative instruments
|
$
|
(2,257
|
)
|
$
|
1,741
|
($ in thousands)
|
||||||||||||||||||||||||
March 31, 2019
|
December 31, 2018
|
|||||||||||||||||||||||
Repurchase
|
Derivative
|
Repurchase
|
Derivative
|
|||||||||||||||||||||
Assets Pledged to Counterparties
|
Agreements
|
Agreements
|
Total
|
Agreements
|
Agreements
|
Total
|
||||||||||||||||||
PT MBS - at fair value
|
$
|
209,262
|
$
|
-
|
$
|
209,262
|
$
|
209,675
|
$
|
-
|
$
|
209,675
|
||||||||||||
Structured MBS - at fair value
|
2,320
|
-
|
2,320
|
2,675
|
-
|
2,675
|
||||||||||||||||||
Accrued interest on pledged securities
|
762
|
-
|
762
|
777
|
-
|
777
|
||||||||||||||||||
Restricted cash
|
-
|
1,783
|
1,783
|
230
|
1,063
|
1,293
|
||||||||||||||||||
Total
|
$
|
212,344
|
$
|
1,783
|
$
|
214,127
|
$
|
213,357
|
$
|
1,063
|
$
|
214,420
|
($ in thousands)
|
||||||||
Assets Pledged to Bimini
|
March 31, 2019
|
December 31, 2018
|
||||||
PT MBS - at fair value
|
$
|
698
|
$
|
-
|
||||
Cash
|
305
|
371
|
||||||
Total
|
$
|
1,003
|
$
|
371
|
(in thousands)
|
||||||||||||||||||||||||
Offsetting of Liabilities
|
||||||||||||||||||||||||
Gross Amount Not Offset in the
|
||||||||||||||||||||||||
Net Amount
|
Consolidated Balance Sheet
|
|||||||||||||||||||||||
Gross Amount
|
of Liabilities
|
Financial
|
||||||||||||||||||||||
Gross Amount
|
Offset in the
|
Presented in the
|
Instruments
|
Cash
|
||||||||||||||||||||
of Recognized
|
Consolidated
|
Consolidated
|
Posted as
|
Posted as
|
Net
|
|||||||||||||||||||
Liabilities
|
Balance Sheet
|
Balance Sheet
|
Collateral
|
Collateral
|
Amount
|
|||||||||||||||||||
March 31, 2019
|
||||||||||||||||||||||||
Repurchase Agreements
|
$
|
199,146
|
$
|
-
|
$
|
199,146
|
$
|
(199,146
|
)
|
$
|
-
|
$
|
-
|
|||||||||||
TBA securities
|
1,064
|
-
|
1,064
|
-
|
(1,167
|
)
|
(103
|
)
|
||||||||||||||||
$
|
200,210
|
$
|
-
|
$
|
200,210
|
$
|
(199,146
|
)
|
$
|
(1,167
|
)
|
$
|
(103
|
)
|
||||||||||
December 31, 2018
|
||||||||||||||||||||||||
Repurchase Agreements
|
$
|
200,396
|
$
|
-
|
$
|
200,396
|
$
|
(200,166
|
)
|
$
|
(230
|
)
|
$
|
-
|
||||||||||
TBA securities
|
938
|
-
|
938
|
-
|
(543
|
)
|
395
|
|||||||||||||||||
$
|
201,334
|
$
|
-
|
$
|
201,334
|
$
|
(200,166
|
)
|
$
|
(773
|
)
|
$
|
395
|
Shares Issued Related To:
|
2019
|
2018
|
||||||
Shares sold directly to employees
|
-
|
83,332
|
||||||
Total shares of Class A Common Stock issued
|
-
|
83,332
|
($ in thousands, except per share data)
|
||||||||||||||||
Three Months Ended March 31,
|
||||||||||||||||
2019
|
2018
|
|||||||||||||||
Weighted
|
Weighted
|
|||||||||||||||
Average
|
Average
|
|||||||||||||||
Grant Date
|
Grant Date
|
|||||||||||||||
Fair Value
|
Fair Value
|
|||||||||||||||
Shares
|
Per Share
|
Shares
|
Per Share
|
|||||||||||||
Unvested, beginning of period
|
-
|
$
|
-
|
41,000
|
$
|
0.84
|
||||||||||
Granted
|
-
|
-
|
-
|
-
|
||||||||||||
Vested and issued
|
-
|
-
|
-
|
-
|
||||||||||||
Unvested, end of period
|
-
|
$
|
-
|
41,000
|
$
|
0.84
|
||||||||||
Compensation expense during the period
|
$
|
-
|
$
|
3
|
||||||||||||
Unrecognized compensation expense at period end
|
$
|
-
|
$
|
8
|
||||||||||||
Weighted-average remaining vesting term (in years)
|
-
|
0.7
|
||||||||||||||
Intrinsic value of unvested shares at period end
|
$
|
-
|
$
|
96
|
(in thousands, except per-share information)
|
||||||||
2019
|
2018
|
|||||||
Basic and diluted EPS per Class A common share:
|
||||||||
Income (loss) attributable to Class A common shares:
|
||||||||
Basic and diluted
|
$
|
1,615
|
$
|
(3,266
|
)
|
|||
Weighted average common shares:
|
||||||||
Class A common shares outstanding at the balance sheet date
|
12,709
|
12,744
|
||||||
Effect of weighting
|
-
|
(14
|
)
|
|||||
Weighted average shares-basic and diluted
|
12,709
|
12,730
|
||||||
Income (loss) per Class A common share:
|
||||||||
Basic and diluted
|
$
|
0.13
|
$
|
(0.26
|
)
|
(in thousands, except per-share information)
|
||||||||
2019
|
2018
|
|||||||
Basic and diluted EPS per Class B common share:
|
||||||||
Income (loss) attributable to Class B common shares:
|
||||||||
Basic and diluted
|
$
|
4
|
$
|
(8
|
)
|
|||
Weighted average common shares:
|
||||||||
Class B common shares outstanding at the balance sheet date
|
32
|
32
|
||||||
Effect of weighting
|
-
|
-
|
||||||
Weighted average shares-basic and diluted
|
32
|
32
|
||||||
Income (loss) per Class B common share:
|
||||||||
Basic and diluted
|
$
|
0.13
|
$
|
(0.26
|
)
|
·
|
Level 1 valuations, where the valuation is based on quoted market prices for identical assets or liabilities traded in active
markets (which include exchanges and over-the-counter markets with sufficient volume),
|
·
|
Level 2 valuations, where the valuation is based on quoted market prices for similar instruments traded in active markets, quoted
prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market, and
|
·
|
Level 3 valuations, where the valuation is generated from model-based techniques that use significant assumptions not observable in
the market, but observable based on Company-specific data. These unobservable assumptions reflect the Company’s own estimates for assumptions that market participants would use in pricing the asset or liability. Valuation techniques
typically include option pricing models, discounted cash flow models and similar techniques, but may also include the use of market prices of assets or liabilities that are not directly comparable to the subject asset or liability.
|
(in thousands)
|
||||||||||||||||
Quoted Prices
|
||||||||||||||||
in Active
|
Significant
|
|||||||||||||||
Markets for
|
Other
|
Significant
|
||||||||||||||
Identical
|
Observable
|
Unobservable
|
||||||||||||||
Fair Value
|
Assets
|
Inputs
|
Inputs
|
|||||||||||||
Measurements
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
March 31, 2019
|
||||||||||||||||
Mortgage-backed securities
|
$
|
211,641
|
$
|
-
|
$
|
211,641
|
$
|
-
|
||||||||
Orchid Island Capital, Inc. common stock
|
10,002
|
10,002
|
-
|
-
|
||||||||||||
TBA securities
|
(1,064
|
)
|
-
|
(1,064
|
)
|
-
|
||||||||||
December 31, 2018
|
||||||||||||||||
Mortgage-backed securities
|
$
|
212,424
|
$
|
-
|
$
|
212,424
|
$
|
-
|
||||||||
Orchid Island Capital, Inc. common stock
|
9,713
|
9,713
|
-
|
-
|
||||||||||||
TBA securities
|
(938
|
)
|
-
|
(938
|
)
|
-
|
(in thousands)
|
||||||||
Retained Interests in
Securitizations
|
||||||||
Three Months Ended March 31,
|
||||||||
2019
|
2018
|
|||||||
Balances, January 1
|
$
|
-
|
$
|
653
|
||||
Gain (loss) included in earnings
|
275
|
(83
|
)
|
|||||
Collections
|
(275
|
)
|
(298
|
)
|
||||
Balances, March 31
|
$
|
-
|
$
|
272
|
(in thousands)
|
||||||||||||||||||||
Asset
|
Investment
|
|||||||||||||||||||
Management
|
Portfolio
|
Corporate
|
Eliminations
|
Total
|
||||||||||||||||
2019
|
||||||||||||||||||||
Advisory services, external customers
|
$
|
1,607
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
1,607
|
||||||||||
Advisory services, other operating segments
(1)
|
68
|
-
|
-
|
(68
|
)
|
-
|
||||||||||||||
Interest and dividend income
|
-
|
2,555
|
-
|
-
|
2,555
|
|||||||||||||||
Interest expense
|
-
|
(1,313
|
)
|
(406
|
)
(2)
|
-
|
(1,719
|
)
|
||||||||||||
Net revenues
|
1,675
|
1,242
|
(406
|
)
|
(68
|
)
|
2,443
|
|||||||||||||
Other
|
-
|
1,304
|
55
|
(3)
|
-
|
1,359
|
||||||||||||||
Operating expenses
(4)
|
(630
|
)
|
(991
|
)
|
-
|
-
|
(1,621
|
)
|
||||||||||||
Intercompany expenses
(1)
|
-
|
(68
|
)
|
-
|
68
|
-
|
||||||||||||||
Income (loss) before income taxes
|
$
|
1,045
|
$
|
1,487
|
$
|
(351
|
)
|
$
|
-
|
$
|
2,181
|
|||||||||
Asset
|
Investment
|
|||||||||||||||||||
Management
|
Portfolio
|
Corporate
|
Eliminations
|
Total
|
||||||||||||||||
2018
|
||||||||||||||||||||
Advisory services, external customers
|
$
|
2,093
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
2,093
|
||||||||||
Advisory services, other operating segments
(1)
|
58
|
-
|
-
|
(58
|
)
|
-
|
||||||||||||||
Interest and dividend income
|
-
|
2,551
|
-
|
-
|
2,551
|
|||||||||||||||
Interest expense
|
-
|
(809
|
)
|
(337
|
)
(2)
|
-
|
(1,146
|
)
|
||||||||||||
Net revenues
|
2,151
|
1,742
|
(337
|
)
|
(58
|
)
|
3,498
|
|||||||||||||
Other
|
-
|
(6,457
|
)
|
333
|
(3)
|
-
|
(6,124
|
)
|
||||||||||||
Operating expenses
(4)
|
(761
|
)
|
(978
|
)
|
-
|
-
|
(1,739
|
)
|
||||||||||||
Intercompany expenses
(1)
|
-
|
(58
|
)
|
-
|
58
|
-
|
||||||||||||||
Income (loss) before income taxes
|
$
|
1,390
|
$
|
(5,751
|
)
|
$
|
(4
|
)
|
$
|
-
|
$
|
(4,365
|
)
|
(1)
|
Includes fees paid by Royal Palm to Bimini Advisors for advisory services.
|
(2)
|
Includes interest on junior subordinated note.
|
(3)
|
Includes gains (losses) on Eurodollar futures contracts entered into as a hedge on junior subordinated notes and fair value
adjustments on retained interests in securitizations.
|
(4)
|
Corporate expenses are allocated based on each segment’s proportional share of total revenues.
|
(in thousands)
|
||||||||||||||||
Asset
|
Investment
|
|||||||||||||||
Management
|
Portfolio
|
Corporate
|
Total
|
|||||||||||||
March 31, 2019
|
$
|
1,507
|
$
|
245,045
|
$
|
12,241
|
$
|
258,793
|
||||||||
December 31, 2018
|
1,488
|
245,866
|
12,046
|
259,400
|
·
|
interest rate trends;
|
·
|
the difference between Agency MBS yields and our funding and hedging costs;
|
·
|
competition for investments in Agency MBS;
|
·
|
actions taken by the U.S. government, including the presidential administration, the Federal Reserve (the “Fed”), the Federal Open
Market Committee (the “FOMC”) and the U.S. Treasury;
|
·
|
prepayment rates on mortgages underlying our Agency MBS, and credit trends insofar as they affect prepayment rates; and
|
·
|
the equity markets and the ability of Orchid to raise additional capital; and
|
·
|
other market developments.
|
·
|
our degree of leverage;
|
·
|
our access to funding and borrowing capacity;
|
·
|
our borrowing costs;
|
·
|
our hedging activities;
|
·
|
the market value of our investments;
|
·
|
the requirements to qualify for a registration exemption under the Investment Company Act;
|
·
|
our ability to use net operating loss carryforwards and net capital loss carryforwards to reduce our taxable income;
|
·
|
the impact of possible future changes in tax laws; and
|
·
|
our ability to manage the portfolio of Orchid and maintain our role as manager.
|
(in thousands)
|
||||||||||||
Three Months Ended March 31,
|
||||||||||||
2019
|
2018
|
Change
|
||||||||||
Advisory services revenues
|
$
|
1,607
|
$
|
2,093
|
$
|
(486
|
)
|
|||||
Interest and dividend income
|
2,555
|
2,551
|
4
|
|||||||||
Interest expense
|
(1,719
|
)
|
(1,146
|
)
|
(573
|
)
|
||||||
Net revenues
|
2,443
|
3,498
|
(1,055
|
)
|
||||||||
Other income (expense)
|
1,359
|
(6,124
|
)
|
7,483
|
||||||||
Expenses
|
(1,621
|
)
|
(1,739
|
)
|
118
|
|||||||
Net income (loss) before income tax provision (benefit)
|
2,181
|
(4,365
|
)
|
6,546
|
||||||||
Income tax provision (benefit)
|
562
|
(1,091
|
)
|
1,653
|
||||||||
Net income (loss)
|
$
|
1,619
|
$
|
(3,274
|
)
|
$
|
4,893
|
Gains (Losses) on Derivative Instruments - Recognized in Consolidated Statement of Operations
(GAAP)
|
||||||||||||
(in thousands)
|
||||||||||||
Recognized in
|
||||||||||||
Statement of
|
TBA
|
|||||||||||
Operations
|
Securities
|
Futures
|
||||||||||
(GAAP)
|
Income (Loss)
|
Contracts
|
||||||||||
Three Months Ended
|