Orchid Island Capital Inc.

Orchid Island Capital swung to a profit in the second quarter of 2026, reporting earnings of $0.44 per share compared with a loss of $0.11 per share in the first quarter. Book value per share rose to $7.22 at June 30 from $7.08 at the end of the prior quarter, and total return improved to 6.2% from negative 1.3%. The company aggressively increased its hedge coverage to 91% of repo funding from 72% last quarter, adding interest-rate swaps and other protection amid rising rate uncertainty. Management shifted the portfolio modestly toward lower-coupon 30-year securities, reducing the average coupon by about 6 basis points, while the economic net interest spread narrowed by the same amount. Post-quarter, book value had declined by as much as 4.3% including dividend accrual, and leverage had risen to about 7.73-to-1, leaving future dividends and returns sensitive to funding costs and mortgage-market volatility.

Orchid Island Capital announced estimated second quarter 2026 results, reporting a book value per share of $7.22 as of June 30, 2026. The company estimates GAAP net income of $0.44 per share for the quarter, which includes an estimated $0.18 per share of net realized and unrealized gains on RMBS and derivative instruments. Estimated total return on equity for the quarter was 6.2%, with dividends declared of $0.30 per share and an increase in book value per share of $0.14. The RMBS portfolio had a fair value of approximately $11.54 billion as of June 30, 2026, with total borrowings of $11.09 billion across 33 counterparties at a weighted average repo rate of 3.77%. All figures are preliminary and subject to review by the company's independent registered public accounting firm.

Orchid Island Capital declared a monthly cash dividend of $0.10 per share for July 2026. The dividend will be paid on August 28, 2026 to stockholders of record as of July 31, 2026, with an ex-dividend date of July 31, 2026. The company also announced it will release estimated second quarter 2026 results and RMBS portfolio characteristics as of June 30, 2026 after the market closes on July 13, 2026. Full results for the six months and second quarter ended June 30, 2026 will be released after the close on July 23, 2026, followed by an earnings conference call on July 24, 2026 at 10:00 AM ET.

Orchid Island Capital announced its board has approved an increase to its stock repurchase program, adding up to 25 million shares for a total authorization of 26,612,580 shares, or about 13.3% of outstanding common stock. The company also estimated its book value per share at $7.24 to $7.28 as of June 18, 2026, reflecting a 2.3% to 2.8% rise since March 31, 2026. Repurchases may be made in open market or private transactions, with timing and amounts subject to market conditions and other factors, and the program has no expiration date.