Bimini Capital Management (OTCMKTS:BMNM) reported consolidated income of $0.8 million, or $0.08 per share, for the first quarter of 2026, as modest losses in agency residential mortgage-backed securities were offset by higher advisory services revenue tied to Orchid Island Capital.
Chairman and Chief Executive Officer Robert Cauley said on the company’s May 8 earnings call that “uneven market conditions” for the agency RMBS market weighed on both Orchid Island Capital and Bimini’s investment portfolio segment during the quarter. He cited market disruption following the outbreak of war in Iran on Feb. 28 as a key factor behind the quarter’s negative pressure.
Advisory Revenue Rises as Orchid Equity Base Expands
Orchid Island Capital reported a net loss of $20.2 million, or $0.11 per share, for the first quarter of 2026, according to Cauley. Bimini’s investment portfolio segment generated a net loss of $0.7 million for the quarter.
Despite Orchid’s quarterly loss, Cauley said Orchid continued to expand its equity base. Orchid’s stockholders’ equity increased to $1.392 billion at March 31, 2026, from $1.372 billion at Dec. 31, 2025.
That increase helped lift Bimini’s advisory services revenue to $5.1 million in the first quarter, compared with $4.7 million in the fourth quarter of 2025. The advisory services segment generated net income of $2.25 million for the quarter.
Cauley said market conditions for leveraged agency RMBS investing had improved in the second quarter of 2026, reversing “some but not all” of the losses sustained during the first quarter.
Company Cites Market Volatility After Middle East Conflict
Cauley said fixed income markets were relatively calm as 2025 ended and 2026 began. Interest rates traded in a tight range, implied interest rate volatility continued to decline, and agency RMBS performed well during the first two months of the quarter. He said other fixed income sectors also performed well during that period, with investment-grade corporate bond spreads reaching levels not seen since 1998.
However, Cauley said the outlook changed after the war broke out in the Middle East. He said the region’s oil and chemical supply infrastructure had suffered military attacks, leading to supply interruptions.
“Inflation, which was already sticky, may move even higher, and the economic outlook has become very uncertain as a result of the war, causing growth both in the U.S. and globally to deteriorate,” Cauley said.
He added that the ultimate outcome of the war remained uncertain. While the U.S. economy had remained resilient to date, Cauley said it was unclear whether that would continue.
TJIM Acquisition Adds Asset Management Business
The company also used the call to introduce Richard Perry, president and chief investment officer of Tom Johnson Investment Management, or TJIM. Bimini closed on its purchase of an 80% ownership stake in TJIM on April 1, 2026.
Perry provided background on TJIM’s history and current operations. He said the firm traces its roots to First National Bank in Oklahoma City and was spun off in 1983 during the oil crisis. Perry became a minority owner, later repurchased the firm in 2003 after prior ownership by United Asset Management and Old Mutual.
Perry said TJIM currently manages a little more than $1.6 billion in assets. About 65% of the firm’s assets under management are through consultant platforms and brokerage consultants, while 35% involve direct client relationships in which TJIM provides investment management and financial planning services.
He described the firm’s product lineup as including:
- Two separately managed equity portfolios, including a relative core value strategy and a diversified stock income, or yield-focused, strategy;
- Four fixed income products, including fixed income and intermediate fixed income strategies that use single-A or better quality issues at purchase;
- Tax-exempt and short-term investment fund offerings;
- A small ETF allocation model for direct clients with smaller portfolios such as Roth accounts or small IRAs.
Cauley said Bimini expects to discuss TJIM’s second-quarter 2026 results as part of the company’s next quarterly earnings discussion.
Shareholder Rights Plan Discussed in Q&A
During the question-and-answer portion of the call, shareholder David Atlas asked about the company’s shareholder rights plan and how Bimini determined the related price level.
Cauley said Bimini previously put a rights plan in place in 2015, which expired in late 2025. The company is seeking shareholder approval for a new plan at its annual meeting, which Cauley said he believed was scheduled for June 9.
Cauley said the company used a different approach than it had in the past because Bimini has changed. When the company traded as a real estate investment trust, he said, the share price was typically tied to book value. With the TJIM acquisition, Cauley said Bimini has become “much more of a pure money manager,” and money managers tend to trade based on metrics such as EBITDA or revenue rather than book value.
He noted that Bimini is a micro-cap company and does not pay a dividend, and said it is unlikely to trade at the same multiples as larger, more liquid public asset managers. Still, he said the company tried to determine a reasonable level and set the rights plan price at a slight discount to that estimate. Cauley also confirmed in response to a follow-up question that Bimini is no longer a REIT.
Cauley closed the call by inviting investors with follow-up questions to contact the company and said management expects to speak with shareholders again after the second quarter.
About Bimini Capital Management (OTCMKTS:BMNM)
Bimini Capital Management, Inc, through its subsidiaries, operates as a specialty finance company in the United States. The company operates in two segments, Asset Management and Investment Portfolio. The Asset Management segment includes investment advisory services by Bimini Advisors to Orchid Island Capital, Inc and Royal Palm Capital, LLC. The Investment Portfolio segment engages in investment activities conducted by Royal Palm Capital, LLC. It invests in residential mortgage-backed securities.
