# EDGAR Filing Document

**Accession Number:** 0001518621
**File Stem:** 0001437749-25-031640
**Filing Date:** 2025-10
**Character Count:** 46852
**Document Hash:** 60eca9212fe13749c3c207544fcce475
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-25-031640.hdr.sgml**: 20251023

**ACCESSION NUMBER**: 0001437749-25-031640

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20251023

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251023

**DATE AS OF CHANGE**: 20251023

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Orchid Island Capital, Inc.
- **CENTRAL INDEX KEY:** 0001518621
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 273269228
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-35236
- **FILM NUMBER:** 251413518

**BUSINESS ADDRESS:**
- **STREET 1:** 3305 FLAMINGO DRIVE
- **CITY:** VERO BEACH
- **STATE:** FL
- **ZIP:** 32963
- **BUSINESS PHONE:** 772-231-1400

**MAIL ADDRESS:**
- **STREET 1:** 3305 FLAMINGO DRIVE
- **CITY:** VERO BEACH
- **STATE:** FL
- **ZIP:** 32963

?xml version='1.0' encoding='ASCII'? orc20250729_8k.htm

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, DC 20549**

**FORM**8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the**

**Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): **October 23, 2025**

**Orchid Island Capital, Inc.**

(Exact Name of Registrant as Specified in Charter)

---

| | | |
|:---|:---|:---|
| **Maryland** | **001-35236** | **27-3269228** |
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |

---

**3305 Flamingo Drive**,**Vero Beach**,**Florida32963**

(Address of Principal Executive Offices) (Zip Code)

Registrant's telephone number, including area code **(**772**)**231-1400**

**N/A**

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class:** | **Trading symbol:**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | **Name of each exchange on which registered:** |
| Common Stock, par value $0.01 per share | ORC | NYSE |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

**Item 2.02. Results of Operations and Financial Condition.**

On October 23, 2025, Orchid Island Capital, Inc. (the "Company") issued the press release attached hereto as Exhibit 99.1 announcing the Company's results of operations for the three and nine month periods ended September 30, 2025. In addition, the Company posted supplemental financial information on the investor relations section of its website (https://ir.orchidislandcapital.com). The press release, attached as Exhibit 99.1, is being furnished under this "Item 2.02 Results of Operations and Financial Condition," and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any disclosure document of the Company, except as shall be expressly set forth by specific reference in such document.

**Caution About Forward-Looking Statements.** 

This Current Report on Form 8-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws, including, but not limited to, statements regarding interest rates, inflation, liquidity, pledging of our structured RMBS, funding levels and spreads, prepayment speeds, portfolio composition, positioning and repositioning, hedging levels, leverage ratio, dividends, investment and return opportunities, the supply and demand for Agency RMBS and the performance of the Agency RMBS sector generally, the effect of actual or expected actions of the U.S. government, including the Federal Reserve, market expectations, capital raising, future opportunities and prospects of the Company, the stock repurchase program, geopolitical uncertainty and general economic conditions (including the effects of tariffs, trade wars, inflation, the U.S. deficit, and the strength of the U.S. dollar). These forward-looking statements are based upon the Company's present expectations, but the Company cannot assure investors that actual results will not vary from the expectations contained in the forward-looking statements. Investors should not place undue reliance upon forward-looking statements. For further discussion of the factors that could affect outcomes, please refer to the "Risk Factors" section of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, which has been filed with the Securities and Exchange Commission ("SEC"), and other documents that the Company files with the SEC. All forward-looking statements speak only as of the date on which they are made. New risks and uncertainties arise over time, and it is not possible to predict those events or how they may affect the Company. Except as required by law, the Company is not obligated to, and does not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

**Item 9.01. Financial Statements and Exhibits.**

(d) Exhibits

---

| | |
|:---|:---|
| Exhibit No. | Description |
| 99.1 | [Press Release dated October 23, 2025](ex_844997.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

------

**Signatures**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| Date: October 23, 2025 |  | ORCHID ISLAND CAPITAL, INC. |
|  | By: | /s/ Robert E. Cauley |
|  |  | Robert E. Cauley |
|  |  | Chairman and Chief Executive Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

![oilogo.jpg](oilogo.jpg)

**ORCHID ISLAND CAPITAL ANNOUNCES Third QUARTER 2025 RESULTS**

VERO BEACH, Fla. (October 23, 2025) – Orchid Island Capital, Inc. (NYSE:ORC) ("Orchid" or the "Company"), a real estate investment trust ("REIT"), today announced results of operations for the three month period ended September 30, 2025.

**Third Quarter 2025 Results**

● Net income of $72.1 million , or $0.53 per common share, which consists of:

● Net interest income of $26.9 million , or $0.20 per common share

● Total expenses of $5.4 million , or $0.04 per common share

● Net realized and unrealized gains of $50.6 million , or $0.37 per common share, on RMBS and derivative instruments, including net interest income on interest rate swaps

● Third quarter dividends declared and paid of $0.36 per common share

● Book value per common share of $7.33 at September 30, 2025

● Total return of 6.7% , comprised of $0.36 dividend per common share and $0.12 increase in book value per common share, divided by beginning book value per common share

**Other Financial Highlights**

● Orchid maintained a strong liquidity position of $620.0 million in cash and cash equivalents and unpledged securities, or approximately 57% of stockholders' equity as of September 30, 2025

● Borrowing capacity in excess of September 30, 2025 outstanding repurchase agreement balances of $8.0 billion , spread across 26 active lenders

● Company to discuss results on Friday, October 24, 2025 , at 10:00 AM ET

● Supplemental materials to be discussed on the call can be downloaded from the investor relations section of the Company's website at https://ir.orchidislandcapital.com

**Management Commentary**

Commenting on the third quarter results, Robert E. Cauley, Chairman and Chief Executive Officer, said, "Market conditions during the quarter were supportive for levered Agency RMBS investors such as Orchid Island Capital. Interest rates were quite stable outside of short-term rates, which declined in anticipation of additional interest rate cuts beyond the 25-basis point cut that occurred in September. Orchid generated a total return for the quarter of 6.7%, unannualized. Orchid continued to build its capital base, still comprised exclusively of common equity, and invested the proceeds into Agency RMBS offering both net interest income and total return potential above historical norms. Orchid was able to acquire Agency RMBS with these characteristics even with elevated levels of prepayments emerging as prevailing market interest rates decline in the face of a cooling labor market and Federal Reserve interest rate cuts. Orchid has done this through prudent security selection and risk management techniques without meaningfully changing its leverage – approximately 7.4 to 1 inclusive of its TBA positions. Orchid has room to raise leverage further should returns in the market become even more attractive.

"With respect to the market backdrop we are operating in, it appears we are at a crossroads. There is evidence that the tariffs introduced by the U.S. presidential administration and the associated uncertainty surrounding their impact on growth and inflation is impacting the labor market, and the Federal Reserve has stated they now see the balance of risk tilted towards economic weakness versus inflation. Note this statement was made before the U.S. federal government shutdown, which has added to risks of a downturn in economic growth. However, there is also evidence that the economy has been resilient in the face of the tariffs and that growth and consumer spending appear stable. Additionally, the likely benefits from the One Big Beautiful Bill Act, deregulation, capital expenditure and artificial intelligence should be supportive of growth in the near future. The path for economic growth, monetary policy and interest rates is uncertain, yet we believe Orchid's portfolio is positioned to deliver attractive return potential in either scenario."

------

**Details of Third Quarter 2025 Results of Operations**

The Company reported net income of $72.1 million for the three month period ended September 30, 2025, compared with a net income of $17.3 million for the three month period ended September 30, 2024. Interest income on the portfolio in the third quarter was up approximately $16.1 million from the second quarter of 2025. The yield on our average Agency RMBS increased from 5.38% in the second quarter of 2025 to 5.65% for the third quarter of 2025, and our repurchase agreement borrowing costs increased from 4.23% for the second quarter of 2025 to 4.45% for the third quarter of 2025. Book value increased by $0.12 per share in the third quarter of 2025. The increase in book value reflects our net income of $0.53 per share and the dividend distribution of $0.36 per share. The Company recorded net realized and unrealized gains of $50.6 million on Agency RMBS assets and derivative instruments, including net interest income on interest rate swaps.

**Prepayments**

For the quarter ended September 30, 2025, Orchid received $212.8 million in scheduled and unscheduled principal repayments and prepayments, which equated to a 3-month constant prepayment rate ("CPR") of approximately 10.1%. Prepayment rates on the two RMBS sub-portfolios were as follows (in CPR):

---

| | | | |
|:---|:---|:---|:---|
|  |  | **Structured** |  |
|  | **PT RMBS** | **RMBS** | **Total** |
| **Three Months Ended** | **Portfolio (%)** | **Portfolio (%)** | **Portfolio (%)** |
| September 30, 2025 | 10.1 | 8.1 | 10.1 |
| June 30, 2025 | 10.1 | 6.3 | 10.1 |
| March 31, 2025 | 7.8 | 4.5 | 7.8 |
| December 31, 2024 | 10.6 | 7.0 | 10.5 |
| September 30, 2024 | 8.8 | 6.4 | 8.8 |
| June 30, 2024 | 7.6 | 7.1 | 7.6 |
| March 31, 2024 | 6.0 | 5.9 | 6.0 |

---

**Portfolio**

The following tables summarize certain characteristics of Orchid's PT RMBS (as defined below) and structured RMBS as of September 30, 2025 and December 31, 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *($ in thousands)* |  | |  |  |  |  |
|  |  |  |  |  | **Weighted** |  |
|  |  |  | **Percentage** |  | **Average** |  |
|  |  |  | **of** | **Weighted** | **Maturity** |  |
|  | **Fair** |  | **Entire** | **Average** | **in** | **Longest** |
| **Asset Category** | **Value** |  | **Portfolio** | **Coupon** | **Months** | **Maturity** |
| **September 30, 2025** |  |  |  |  |  |  |
| Fixed Rate RMBS | $8341899 |  | 99.8% | 5.51% | 334 | 1-Sep-55 |
| Interest-Only Securities | 13975 |  | 0.2% | 4.01% | 204 | 25-Jul-48 |
| Inverse Interest-Only Securities | 206 |  | 0.0% | 0.00% | 252 | 15-Jun-42 |
| Total Mortgage Assets | $8356080 |  | 100.0% | 5.49% | 333 | 1-Sep-55 |
| **December 31, 2024** |  |  |  |  |  |  |
| Fixed Rate RMBS | $5237812 |  | 99.7% | 5.03% | 330 | 1-Nov-54 |
| Interest-Only Securities | 15308 |  | 0.3% | 4.01% | 212 | 25-Jul-48 |
| Inverse Interest-Only Securities | 190 |  | 0.0% | 0.00% | 261 | 15-Jun-42 |
| Total Mortgage Assets | $5253310 |  | 100.0% | 4.99% | 328 | 1-Nov-54 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *($ in thousands)* |  | |  |  | |  |
|  | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  |  | **Percentage of** |  |  | **Percentage of** |
| **Agency** | **Fair Value** |  | **Entire Portfolio** | **Fair Value** |  | **Entire Portfolio** |
| Fannie Mae | $4741967 |  | 56.7% | $3693032 |  | 70.3% |
| Freddie Mac | 3614113 |  | 43.3% | 1560278 |  | 29.7% |
| Total Portfolio | $8356080 |  | 100.0% | $5253310 |  | 100.0% |

---

------

---

| | | |
|:---|:---|:---|
|  | **September 30, 2025** | **December 31, 2024** |
| Weighted Average Pass-through Purchase Price | $102.33 | $102.45 |
| Weighted Average Structured Purchase Price | $18.74 | $18.74 |
| Weighted Average Pass-through Current Price | $101.07 | $96.44 |
| Weighted Average Structured Current Price | $14.65 | $14.38 |
| Effective Duration <sup>(1)</sup> | 2.991 | 4.200 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Effective duration is the approximate percentage change in price for a 100 basis point change in rates. An effective duration of 2.991 indicates that an interest rate increase of 1.0% would be expected to cause a 2.991 % decrease in the value of the RMBS in the Company's investment portfolio at September 30, 2025 . An effective duration of 4.200 indicates that an interest rate increase of 1.0% would be expected to cause a 4.200 % decrease in the value of the RMBS in the Company's investment portfolio at December 31, 2024 . These figures include the structured securities in the portfolio, but do not include the effect of the Company's funding cost hedges. Effective duration quotes for individual investments are obtained from The Yield Book, Inc.

**Financing, Leverage and Liquidity**

As of September 30, 2025, the Company had outstanding repurchase obligations of approximately $8.0 billion with a net weighted average borrowing rate of 4.33%. These agreements were collateralized by RMBS with a fair value, including accrued interest, of approximately $8.4 billion and cash pledged to counterparties of approximately $26.4 million. The Company's adjusted leverage ratio, defined as the balance of repurchase agreement liabilities divided by stockholders' equity, at September 30, 2025 was 7.4 to 1. At September 30, 2025, the Company's liquidity was approximately $620.0 million consisting of cash and cash equivalents and unpledged securities. To enhance our liquidity even further, we may pledge more of our structured RMBS as part of a repurchase agreement funding, but retain the cash in lieu of acquiring additional assets. In this way we can, at a modest cost, retain higher levels of cash on hand and decrease the likelihood we will have to sell assets in a distressed market in order to raise cash. Below is a list of our outstanding borrowings under repurchase obligations at September 30, 2025.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *($ in thousands)* |  | |  |  |  |
|  |  |  |  | **Weighted** | **Weighted** |
|  | **Total** |  |  | **Average** | **Average** |
|  | **Outstanding** |  | **% of** | **Borrowing** | **Maturity** |
| **Counterparty** | **Balances** |  | **Total** | **Rate** | **in Days** |
| J.P. Morgan Securities LLC | $511662 |  | 6.41% | 4.34% | 20 |
| Citigroup Global Markets Inc | 437979 |  | 5.47% | 4.42% | 34 |
| DV Securities, LLC Repo | 389984 |  | 4.87% | 4.37% | 36 |
| ABN AMRO Bank N.V. | 377931 |  | 4.72% | 4.25% | 42 |
| Wells Fargo Securities, LLC | 371202 |  | 4.64% | 4.45% | 14 |
| The Bank of Nova Scotia | 369533 |  | 4.62% | 4.39% | 20 |
| Merrill Lynch, Pierce, Fenner & Smith | 362023 |  | 4.52% | 4.34% | 70 |
| ASL Capital Markets Inc. | 359654 |  | 4.49% | 4.16% | 126 |
| Bank of Montreal | 358926 |  | 4.48% | 4.38% | 30 |
| South Street Securities, LLC | 344604 |  | 4.30% | 4.31% | 81 |
| Goldman, Sachs & Co | 337376 |  | 4.21% | 4.34% | 27 |
| StoneX Financial Inc. | 332143 |  | 4.15% | 4.30% | 20 |
| Mirae Asset Securities (USA) Inc. | 331786 |  | 4.14% | 4.29% | 35 |
| Daiwa Securities America Inc. | 329915 |  | 4.12% | 4.17% | 135 |
| Cantor Fitzgerald & Co | 319230 |  | 3.99% | 4.34% | 25 |
| Clear Street LLC | 307707 |  | 3.84% | 4.35% | 20 |
| Marex Capital Markets Inc. | 302480 |  | 3.78% | 4.32% | 31 |
| RBC Capital Markets, LLC | 298220 |  | 3.72% | 4.27% | 56 |
| ING Financial Markets LLC | 291011 |  | 3.63% | 4.32% | 17 |
| Banco Santander SA | 265981 |  | 3.32% | 4.38% | 16 |
| MUFG Securities Canada, Ltd. | 255958 |  | 3.20% | 4.38% | 8 |
| Mitsubishi UFJ Securities (USA), Inc. | 246210 |  | 3.07% | 4.44% | 16 |
| Mizuho Securities USA LLC | 207561 |  | 2.59% | 4.34% | 23 |
| Nomura Securities International, Inc. | 158100 |  | 1.97% | 4.41% | 14 |
| Natixis, New York Branch | 104895 |  | 1.31% | 4.34% | 29 |
| Lucid Prime Fund, LLC | 34907 |  | 0.44% | 4.34% | 16 |
| Total / Weighted Average | $8006978 |  | 100.00% | 4.33% | 39 |

---

------

**Hedging**

In connection with its interest rate risk management strategy, the Company economically hedges a portion of the cost of its repurchase agreement funding against a rise in interest rates by entering into derivative financial instrument contracts. The Company has not elected hedging treatment under U.S. generally accepted accounting principles ("GAAP") in order to align the accounting treatment of its derivative instruments with the treatment of its portfolio assets under the fair value option election. As such, all gains or losses on these instruments are reflected in earnings for all periods presented. At September 30, 2025, such instruments were comprised of U.S. Treasury note ("T-Note") and Secured Overnight Financing Rate ("SOFR") futures contracts, interest rate swap agreements and contracts to sell to-be-announced ("TBA") securities.

The table below presents information related to the Company's T-Note and SOFR futures contracts at September 30, 2025.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *($ in thousands)* |  | |  |  |  |
|  | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
|  | **Average** |  | **Weighted** | **Weighted** |  |
|  | **Contract** |  | **Average** | **Average** |  |
|  | **Notional** |  | **Entry** | **Effective** | **Open** |
| **Expiration Year** | **Amount** |  | **Rate** | **Rate** | **Equity<sup>(1)</sup>** |
| **U.S. Treasury Note Futures Contracts (Short Positions)<sup>(2)</sup>** |  |  |  |  |  |
| December 2025 5-year T-Note futures (Dec 2025 - Dec 2030 Hedge Period) | $562500 |  | 3.67% | 3.67% | $54 |
| &nbsp;&nbsp;&nbsp;&nbsp; December 2025 10-year T-Note futures (Dec 2025 - Dec 2035 Hedge Period) | 228500 |  | 3.97% | 3.91% | (997) |
| &nbsp;&nbsp;&nbsp;&nbsp; December 2025 10-year Ultra futures (Dec 2025 - Dec 2035 Hedge Period) | 197500 |  | 4.23% | 4.13% | (1855) |
| **SOFR Futures Contracts (Short Positions)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; December 2025 3-Month SOFR futures (Sep 2025 - Dec 2025 Hedge Period) | $97500 |  | 4.00% | 4.04% | $43 |
| &nbsp;&nbsp;&nbsp;&nbsp; March 2026 3-Month SOFR futures (Dec 2025 - Mar 2026 Hedge Period) | 97500 |  | 3.73% | 3.69% | (46) |
| &nbsp;&nbsp;&nbsp;&nbsp; June 2026 3-Month SOFR futures (Mar 2026 - Jun 2026 Hedge Period) | 97500 |  | 3.55% | 3.50% | (52) |
| &nbsp;&nbsp;&nbsp;&nbsp; September 2026 3-Month SOFR futures (Jun 2026 - Sep 2026 Hedge Period) | 97500 |  | 3.38% | 3.29% | (91) |
| &nbsp;&nbsp;&nbsp;&nbsp; December 2026 3-Month SOFR futures (Sep 2026 - Dec 2026 Hedge Period) | 97500 |  | 3.27% | 3.15% | (116) |
| &nbsp;&nbsp;&nbsp;&nbsp; March 2027 3-Month SOFR futures (Dec 2026 - Mar 2027 Hedge Period) | 97500 |  | 3.22% | 3.10% | (119) |
| &nbsp;&nbsp;&nbsp;&nbsp; June 2027 3-Month SOFR futures (Mar 2027 - Jun 2027 Hedge Period) | 97500 |  | 3.21% | 3.08% | (119) |
| **ERIS SOFR Swap Futures Contracts (Short Positions)<sup>(3)</sup>** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; December 2025 5-Year Term, 3.75% fixed rate, (Dec 2025 - Dec 2030 Hedge Period) | $10000 |  | 3.20% | 3.36% | $78 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Open equity represents the cumulative gains (losses) recorded on open futures positions from inception.

&nbsp;&nbsp;&nbsp;&nbsp;(2) 5-Year T-Note futures contracts were valued at a price of $109.20 at September 30, 2025 . The aggregate contract values of the short positions were $614.2 million at September 30, 2025 . 10-Year T-Note futures contracts were valued at a price of $112.50 at September 30, 2025 . The aggregate contract values of the short positions were $257.1 million at September 30, 2025 . 10-Year Ultra futures contracts were valued at a price of $115.08 at September 30, 2025 . The aggregate contract values of the short positions were $227.3 million at September 30, 2025 .

&nbsp;&nbsp;&nbsp;&nbsp;(3) ERIS swap futures are exchange traded futures that replicate the cash flows of an underlying swap position.

The table below presents information related to the Company's interest rate swap positions at September 30, 2025.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *($ in thousands)* |  | |  |  |  |
|  |  |  | **Average** |  |  |
|  |  |  | **Fixed** | **Average** | **Average** |
|  | **Notional** |  | **Pay** | **Receive** | **Maturity** |
|  | **Amount** |  | **Rate** | **Rate** | **(Years)** |
| Expiration > 1 to ≤ 5 years | $1922500 |  | 2.90% | 4.24% | 3.7 |
| Expiration > 5 years | 2020800 |  | 3.69% | 4.27% | 7.0 |
|  | $3943300 |  | 3.31% | 4.25% | 5.4 |

---

------

The following table summarizes our contracts to sell TBA securities as of September 30, 2025.

---

| | | | | |
|:---|:---|:---|:---|:---|
| *($ in thousands)* | | | | |
|  | **Notional** |  |  |  |
|  | **Amount** |  |  | **Net** |
|  | **Long** | **Cost** | **Market** | **Carrying** |
|  | **(Short)(1)** | **Basis(2)** | **Value(3)** | **Value(4)** |
| **September 30, 2025** |  |  |  |  |
| *15-Year TBA securities:* |  |  |  |  |
| 5.0% | $250000 | $252422 | $252715 | $293 |
| *30-Year TBA securities:* |  |  |  |  |
| 5.5% | (282000) | (284018) | (284445) | (427) |
|  | $(32000) | $(31596) | $(31730) | $(134) |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Notional amount represents the par value (or principal balance) of the underlying Agency RMBS.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Cost basis represents the forward price to be paid (received) for the underlying Agency RMBS.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Market value represents the current market value of the TBA securities (or of the underlying Agency RMBS) as of period-end.

&nbsp;&nbsp;&nbsp;&nbsp;(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 balance sheets.

**Dividends**

In addition to other requirements that must be satisfied to qualify as a REIT, we must pay annual dividends to our stockholders of at least 90% of our REIT taxable income, determined without regard to the deduction for dividends paid and excluding any net capital gains. We intend to pay regular monthly dividends to our stockholders and have declared the following dividends since our February 2013 IPO.

---

| | | |
|:---|:---|:---|
| *(in thousands, except per share data)* | *(in thousands, except per share data)* | *(in thousands, except per share data)* |
| **Year** | **Per Share Amount** | **Total** |
| 2013 | $6.975 | $4662 |
| 2014 | 10.800 | 22643 |
| 2015 | 9.600 | 38748 |
| 2016 | 8.400 | 41388 |
| 2017 | 8.400 | 70717 |
| 2018 | 5.350 | 55814 |
| 2019 | 4.800 | 54421 |
| 2020 | 3.950 | 53570 |
| 2021 | 3.900 | 97601 |
| 2022 | 2.475 | 87906 |
| 2023 | 1.800 | 81127 |
| 2024 | 1.440 | 96309 |
| 2025 - YTD<sup>(1)</sup> | 1.200 | 147192 |
| Totals | $69.090 | $852098 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) On October 15, 2025 , the Company declared a dividend of $0.12 per share to be paid on November 26, 2025 . The effect of this dividend is included in the table above but is not reflected in the Company's financial statements as of September 30, 2025 .

**Book Value Per Share**

The Company's book value per share at September 30, 2025 was $7.33. The Company computes book value per share by dividing total stockholders' equity by the total number of shares outstanding of the Company's common stock. At September 30, 2025, the Company's stockholders' equity was $1,086.1 million with 148,239,401 shares of common stock outstanding.

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**Capital Allocation and Return on Invested Capital**

The Company allocates capital to two RMBS sub-portfolios, the pass-through RMBS portfolio, consisting of mortgage pass-through certificates issued by Fannie Mae, Freddie Mac or Ginnie Mae (the "GSEs") and collateralized mortgage obligations ("CMOs") issued by the GSEs ("PT RMBS"), and the structured RMBS portfolio, consisting of interest-only ("IO") and inverse interest-only ("IIO") securities. As of September 30, 2025, approximately 98.5% of the Company's investable capital (which consists of equity in pledged PT RMBS, available cash and unencumbered assets) was deployed in the PT RMBS portfolio. At June 30, 2025, the allocation to the PT RMBS portfolio was approximately 98.1%.

The table below details the changes to the respective sub-portfolios during the quarter.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(in thousands)* | *(in thousands)* | *(in thousands)* | *(in thousands)* | *(in thousands)* | *(in thousands)* |
| **Portfolio Activity for the Quarter** | **Portfolio Activity for the Quarter** | **Portfolio Activity for the Quarter** | **Portfolio Activity for the Quarter** | **Portfolio Activity for the Quarter** | **Portfolio Activity for the Quarter** |
|  |  | **Structured Security Portfolio** | **Structured Security Portfolio** | **Structured Security Portfolio** |  |
|  |  |  | **Inverse** |  |  |
|  | **Pass-** | **Interest** | **Interest** |  |  |
|  | **Through** | **Only** | **Only** |  |  |
|  | **Portfolio** | **Securities** | **Securities** | **Sub-total** | **Total** |
| **Market value - June 30, 2025** | $**6978561** | $**14550** | $**248** | $**14798** | $**6993359** |
| Securities purchased | 1516114 |  |  |  | 1516114 |
| Return of investment | n/a | (571) |  | (571) | (571) |
| Pay-downs | (212194) | n/a | n/a | n/a | (212194) |
| Premium lost due to pay-downs | (1412) | n/a | n/a | n/a | (1412) |
| Mark to market gains (losses) | 60830 | (4) | (42) | (46) | 60784 |
| **Market value - September 30, 2025** | $**8341899** | $**13975** | $**206** | $**14181** | $**8356080** |

---

The tables below present the allocation of capital between the respective portfolios at September 30, 2025 and June 30, 2025 and the return on invested capital for each sub-portfolio for the three month period ended September 30, 2025.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *($ in thousands)* | *($ in thousands)* | *($ in thousands)* | *($ in thousands)* | *($ in thousands)* | *($ in thousands)* |
| **Capital Allocation** | **Capital Allocation** | **Capital Allocation** | **Capital Allocation** | **Capital Allocation** | **Capital Allocation** |
|  |  | **Structured Security Portfolio** | **Structured Security Portfolio** | **Structured Security Portfolio** |  |
|  |  |  | **Inverse** |  |  |
|  | **Pass-** | **Interest** | **Interest** |  |  |
|  | **Through** | **Only** | **Only** |  |  |
|  | **Portfolio** | **Securities** | **Securities** | **Sub-total** | **Total** |
| **September 30, 2025** |  |  |  |  |  |
| Market value | $8341899 | $13975 | $206 | $14181 | $8356080 |
| Cash | 617208 |  |  |  | 617208 |
| Borrowings<sup>(1)</sup> | (8006978) |  |  |  | (8006978) |
| Total | $952129 | $13975 | $206 | $14181 | $966310 |
| % of Total | 98.5% | 1.5% | 0.0% | 1.5% | 100.0% |
| **June 30, 2025** |  |  |  |  |  |
| Market value | $6978561 | $14550 | $248 | $14798 | $6993359 |
| Cash | 456328 |  |  |  | 456328 |
| Borrowings<sup>(2)</sup> | (6655879) |  |  |  | (6655879) |
| Total | $779010 | $14550 | $248 | $14798 | $793808 |
| % of Total | 98.1% | 1.9% | 0.0% | 1.9% | 100.0% |

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&nbsp;&nbsp;&nbsp;&nbsp;(1) At September 30, 2025 , there were outstanding repurchase agreement balances of $11.2 million secured by IO securities and $0.2 million secured by IIO securities. We entered into these arrangements to generate additional cash available to meet margin calls on PT RMBS; therefore, we have not considered these balances to be allocated to the structured securities strategy.

&nbsp;&nbsp;&nbsp;&nbsp;(2) At June 30, 2025, there were outstanding repurchase agreement balances of $11.7 million secured by IO securities and $0.2 million secured by IIO securities. We entered into these arrangements to generate additional cash available to meet margin calls on PT RMBS; therefore, we have not considered these balances to be allocated to the structured securities strategy.

------

The return on invested capital in the PT RMBS and structured RMBS portfolios was approximately 9.9% and 1.2%, respectively, for the third quarter of 2025. The combined portfolio generated a return on invested capital of approximately 9.8%.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *($ in thousands)* | *($ in thousands)* | *($ in thousands)* | *($ in thousands)* | *($ in thousands)* | *($ in thousands)* |
| **Returns for the Quarter Ended September 30, 2025** | **Returns for the Quarter Ended September 30, 2025** | **Returns for the Quarter Ended September 30, 2025** | **Returns for the Quarter Ended September 30, 2025** | **Returns for the Quarter Ended September 30, 2025** | **Returns for the Quarter Ended September 30, 2025** |
|  |  | **Structured Security Portfolio** | **Structured Security Portfolio** | **Structured Security Portfolio** |  |
|  |  |  | **Inverse** |  |  |
|  | **Pass-** | **Interest** | **Interest** |  |  |
|  | **Through** | **Only** | **Only** |  |  |
|  | **Portfolio** | **Securities** | **Securities** | **Sub-total** | **Total** |
| Income (net of borrowing cost) | $26697 | $222 | $- | $222 | $26919 |
| Realized and unrealized gains (losses) | 59418 | (4) | (42) | (46) | 59372 |
| Derivative losses | (8772) | n/a | n/a | n/a | (8772) |
| Total Return | $77343 | $218 | $(42) | $176 | $77519 |
| Beginning Capital Allocation | $779010 | $14550 | $248 | $14798 | $793808 |
| Return on Invested Capital for the Quarter<sup>(1)</sup> | 9.9% | 1.5% | (16.9)% | 1.2% | 9.8% |
| Average Capital Allocation<sup>(2)</sup> | $865570 | $14263 | $227 | $14490 | $880060 |
| Return on Average Invested Capital for the Quarter<sup>(3)</sup> | 8.9% | 1.5% | (18.5)% | 1.2% | 8.8% |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Calculated by dividing the Total Return by the Beginning Capital Allocation, expressed as a percentage.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Calculated using two data points, the Beginning and Ending Capital Allocation balances.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Calculated by dividing the Total Return by the Average Capital Allocation, expressed as a percentage.

**Stock Offerings**

On March 7, 2023, we entered into an equity distribution agreement (the "March 2023 Equity Distribution Agreement") with three sales agents pursuant to which we could offer and sell, from time to time, up to an aggregate amount of $250,000,000 of gross proceeds from the sales of shares of our common stock in transactions that were deemed to be "at the market" offerings and privately negotiated transactions. We issued a total of 24,675,497 shares under the March 2023 Equity Distribution Agreement for aggregate gross proceeds of approximately $228.8 million and net proceeds of approximately $225.0 million, after commissions and fees, prior to its termination in June 2024.

On June 11, 2024, we entered into an equity distribution agreement (the "June 2024 Equity Distribution Agreement") with three sales agents pursuant to which we could offer and sell, from time to time, up to an aggregate amount of $250,000,000 of gross proceeds from the sales of shares of our common stock in transactions that were deemed to be "at the market" offerings and privately negotiated transactions. We issued a total of 30,513,253 shares under the June 2024 Equity Distribution Agreement for aggregate gross proceeds of approximately $250.0 million and net proceeds of approximately $245.8 million, after commissions and fees, prior to its termination in February 2025.

On February 24, 2025, we entered into an equity distribution agreement (the "February 2025 Equity Distribution Agreement") with four sales agents pursuant to which we may offer and sell, from time to time, up to an aggregate amount of $350,000,000 of gross proceeds from the sales of shares of our common stock in transactions that are deemed to be "at the market" offerings and privately negotiated transactions. On July 28, 2025, the February 2025 Equity Distribution Agreement was amended to increase the aggregate amount of shares that may be offered by $150,000,000 to a total of $500,000,000. On July 28, 2025, the February 2025 Equity Distribution Agreement was amended to increase the aggregate amount of gross proceeds from the sales of shares that may be offered by $150,000,000 to a total of $500,000,000. Through September 30, 2025, we issued a total of 56,019,745 shares under the February 2025 Equity Distribution Agreement for aggregate gross proceeds of approximately $420.2 million, and net proceeds of approximately $413.5 million, after commissions and fees. Subsequent to September 30, 2025, we issued a total of 3,472,759 shares under the February 2025 Equity Distribution Agreement for aggregate gross proceeds of approximately $25.0 million, and net proceeds of approximately $24.6 million, after commissions and fees.

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**Stock Repurchase Program**

On July 29, 2015, the Company's Board of Directors authorized the repurchase of up to 400,000 shares of our common stock. The timing, manner, price and amount of any repurchases is determined by the Company in its discretion and is subject to economic and market conditions, stock price, applicable legal requirements and other factors. The authorization does not obligate the Company to acquire any particular amount of common stock and the program may be suspended or discontinued at the Company's discretion without prior notice. On February 8, 2018, the Board of Directors approved an increase in the stock repurchase program for up to an additional 904,564 shares of the Company's common stock. Coupled with the 156,751 shares remaining from the original 400,000 share authorization, the increased authorization brought the total authorization to 1,061,316 shares, representing 10% of the Company's then outstanding share count. On December 9, 2021, the Board of Directors approved an increase in the number of shares of the Company's common stock available in the stock repurchase program for up to an additional 3,372,399 shares, bringing the remaining authorization under the stock repurchase program to 3,539,861 shares, representing approximately 10% of the Company's then outstanding shares of common stock. On October 12, 2022, the Board of Directors approved an increase in the number of shares of the Company's common stock available in the stock repurchase program for up to an additional 4,300,000 shares, bringing the remaining authorization under the stock repurchase program to 6,183,601 shares, representing approximately 18% of the Company's then outstanding shares of common stock. This stock repurchase program has no termination date.

From the inception of the stock repurchase program through September 30, 2025, the Company repurchased a total of 6,257,826 shares at an aggregate cost of approximately $84.8 million, including commissions and fees, for a weighted average price of $13.55 per share. During the nine months ended September 30, 2025, the Company repurchased a total of 1,113,224 shares at an aggregate cost of approximately $7.3 million, including commissions and fees, for a weighted average price of $6.52. There were no shares repurchased during the three months ended September 30, 2025. The remaining authorization under the stock repurchase program as of October 23, 2025 was 2,719,137 shares.

**Earnings Conference Call Details**

An earnings conference call and live audio webcast will be hosted Friday, October 24, 2025, at 10:00 AM ET. Participants can register and receive dial-in information at https://register-conf.media-server.com/register/BIeb71dde9e1144ca49e705d45afa0579b. A live audio webcast of the conference call can be accessed at https://edge.media-server.com/mmc/p/d8o7sxmj or via the investor relations section of the Company's website at https://ir.orchidislandcapital.com. An audio archive of the webcast will be available for 30 days after the call.

**About Orchid Island Capital, Inc.**

Orchid Island Capital, Inc. is a specialty finance company that invests on a leveraged basis in Agency RMBS. Our investment strategy focuses on, and our portfolio consists of, two categories of Agency RMBS: (i) traditional pass-through Agency RMBS, such as mortgage pass-through certificates, and CMOs issued by the GSEs, and (ii) structured Agency RMBS, such as IOs, IIOs and principal only securities, among other types of structured Agency RMBS. Orchid is managed by Bimini Advisors, LLC, a registered investment adviser with the Securities and Exchange Commission.

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**Forward Looking Statements**

Statements herein relating to matters that are not historical facts, including, but not limited to statements regarding interest rates, inflation, liquidity, pledging of our structured RMBS, funding levels and spreads, prepayment speeds, portfolio composition, positioning and repositioning, hedging levels, leverage ratio, dividends, investment and return opportunities, the supply and demand for Agency RMBS and the performance of the Agency RMBS sector generally, the effect of actual or expected actions of the U.S. government, including the Fed, market expectations, capital raising, future opportunities and prospects of the Company, the stock repurchase program, geopolitical uncertainty and general economic conditions (including the effects of tariffs, trade wars, inflation, the U.S. deficit, U.S. government shutdowns, and the strength of the U.S. dollar), are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The reader is cautioned that such forward-looking statements are based on information available at the time and on management's good faith belief with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in such forward-looking statements. Important factors that could cause such differences are described in Orchid Island Capital, Inc.'s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Orchid Island Capital, Inc. assumes no obligation to update forward-looking statements to reflect subsequent results, changes in assumptions or changes in other factors affecting forward-looking statements.

CONTACT:

Orchid Island Capital, Inc.

Robert E. Cauley

Chairman and Chief Executive Officer

772-231-1400

https://ir.orchidislandcapital.com

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**Summarized Financial Statements**

The following is a summarized presentation of the unaudited balance sheets as of September 30, 2025, and December 31, 2024, and the unaudited quarterly statements of operations for the nine and three months ended September 30, 2025 and 2024. Amounts presented are subject to change.

---

| |
|:---|
| **ORCHID ISLAND CAPITAL, INC.** |
| **BALANCE SHEETS** |
| **($ in thousands, except per share data)** |
| **(Unaudited - Amounts Subject to Change)** |

---

---

| | | |
|:---|:---|:---|
|  | **September 30, 2025** | **December 31, 2024** |
| **ASSETS:** |  |  |
| Mortgage-backed securities, at fair value | $8356080 | $5253310 |
| U.S. Treasury securities, available-for-sale | 125440 | 100551 |
| Cash, cash equivalents and restricted cash | 617208 | 335053 |
| Accrued interest receivable | 39353 | 23044 |
| Derivative assets, at fair value | 548 | 9277 |
| Other assets | 405 | 392 |
| **Total Assets** | $9139034 | $5721627 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Repurchase agreements | $8006978 | $5025543 |
| Dividends payable | 17815 | 9940 |
| Derivative liabilities, at fair value | 2949 | 332 |
| Accrued interest payable | 22234 | 10750 |
| Due to affiliates | 1498 | 1167 |
| Other liabilities | 1471 | 5395 |
| Total Liabilities | 8052945 | 5053127 |
| **Total Stockholders' Equity** | 1086089 | 668500 |
| **Total Liabilities and Stockholders' Equity** | $9139034 | $5721627 |
| Common shares outstanding | 148239401 | 82622464 |
| Book value per share | $7.33 | $8.09 |

---

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---

| |
|:---|
| **ORCHID ISLAND CAPITAL, INC.** |
| **STATEMENTS OF COMPREHENSIVE INCOME (LOSS)** |
| **($ in thousands, except per share data)** |
| **(Unaudited - Amounts Subject to Change)** |

---

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Interest income | $281813 | $169581 | $108434 | $67646 |
| Interest expense | (212027) | (172428) | (81515) | (67306) |
| Net interest income (expense) | 69786 | (2847) | 26919 | 340 |
| Gains on RMBS and derivative contracts | 499 | 47351 | 50600 | 21249 |
| Net portfolio income | 70285 | 44504 | 77519 | 21589 |
| Expenses | 14663 | 12387 | 5441 | 4269 |
| **Net income** | $55622 | $32117 | $72078 | $17320 |
| Other comprehensive income | 280 | 38 | 94 | 48 |
| **Comprehensive net income** | $55902 | $32155 | $72172 | $17368 |
| **Basic and diluted net income per share** | $0.48 | $0.53 | $0.53 | $0.24 |
| **Weighted Average Shares Outstanding** | 115574062 | 60700959 | 136368958 | 72377373 |
| **Dividends Declared Per Common Share:** | $1.08 | $1.08 | $0.36 | $0.36 |

---

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| | | |
|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** |
| **Key Balance Sheet Metrics** | **2025** | **2024** |
| Average RMBS<sup>(1)</sup> | $7674720 | $4984279 |
| Average repurchase agreements<sup>(1)</sup> | 7331428 | 4788287 |
| Average stockholders' equity<sup>(1)</sup> | 999025 | 605978 |
| Adjusted leverage ratio - as of period end<sup>(2)</sup> | 7.4:1 | 8.0:1 |
| Economic leverage ratio - as of period end<sup>(3)</sup> | 7.4:1 | 7.6:1 |
| **Key Performance Metrics** |  |  |
| Average yield on RMBS<sup>(4)</sup> | 5.65% | 5.43% |
| Average cost of funds<sup>(4)</sup> | 4.45% | 5.62% |
| Average economic cost of funds<sup>(5)</sup> | 3.25% | 2.96% |
| Average interest rate spread<sup>(6)</sup> | 1.20% | (0.19)% |
| Average economic interest rate spread<sup>(7)</sup> | 2.40% | 2.47% |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Average RMBS, borrowings and stockholders' equity balances are calculated using two data points, the beginning and ending balances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The adjusted leverage ratio is calculated by dividing ending repurchase agreement liabilities by ending stockholders' equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The economic leverage ratio is calculated by dividing ending total liabilities adjusted for net notional TBA positions by ending stockholders' equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Portfolio yields and costs of funds are calculated based on the average balances of the underlying investment portfolio/borrowings balances and are annualized for the quarterly periods presented.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Represents the interest cost of our borrowings and the effect of derivative agreements attributed to the period related to hedging activities, divided by average borrowings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Average interest rate spread is calculated by subtracting average cost of funds from average yield on RMBS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Average economic interest rate spread is calculated by subtracting average economic cost of funds from average yield on RMBS.