8-K: Bimini Capital Management Reports Q1 2026 Results

Bimini Capital Management announced first quarter 2026 net income of $0.8 million, or $0.08 per share, driven by advisory services revenue growth and offset by losses in its MBS portfolio.

Summary

• Bimini Capital Management reported a net income of $0.8 million ($0.08 per common share) for the first quarter of 2026, an increase from $0.6 million ($0.06 per common share) in the first quarter of 2025.
• Book value per share rose to $1.34 as of March 31, 2026, from $1.26 as of December 31, 2025.
• Advisory services revenue increased to $5.1 million in Q1 2026, up 9% from Q4 2025 and 43% from Q1 2025.
• The company completed the acquisition of 80% of Tom Johnson Investment Management, LLC (TJIM) on April 1, 2026, adding approximately $1.6 billion in assets under management.
• The Agency RMBS portfolio and investment portfolio segment experienced modest losses, with Orchid Island Capital reporting a net loss of $20.2 million ($0.11 per share) and Bimini's investment portfolio segment a net loss of $0.7 million.
• Repurchase agreement funding costs decreased significantly compared to prior periods.
• The company's MBS portfolio value decreased from $88.9 million at the end of 2025 to $16.1 million at the end of Q1 2026.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a moderately positive filing, with strong growth in the advisory segment and improved net income, partially offset by losses in the MBS portfolio and geopolitical uncertainties.

Positives

• Net income increased to $0.8 million in Q1 2026 from $0.6 million in Q1 2025.
• Book value per share improved to $1.34 from $1.26.
• Advisory services revenue saw a significant increase of 43% year-over-year, reaching $5.1 million.
• The acquisition of TJIM diversifies and expands advisory services, adding $1.6 billion in AUM.
• Repurchase agreement funding costs decreased by 32% from Q4 2025 and 47% from Q1 2025.
• Net interest income, including dividends from Orchid shares, increased by 6% from Q4 2025 due to lower funding rates and asset sale timing.

Negatives

• Orchid Island Capital reported a net loss of $20.2 million ($0.11 per share) for the quarter.
• Bimini's investment portfolio segment generated a net loss of $0.7 million.
• The Agency RMBS market experienced uneven conditions leading to modest losses.
• The MBS portfolio was significantly reduced to fund the TJIM acquisition, decreasing from $88.9 million to $16.1 million.

Risks

• The war in the Middle East has created supply interruptions, potentially increasing inflation and creating economic uncertainty.
• The economic outlook has deteriorated due to the war's impact on global growth.
• The resilience of the US economy is uncertain.
• Interest rate volatility could impact the value of the MBS portfolio.
• The effective duration of the MBS portfolio increased to 3.483, indicating a greater sensitivity to interest rate increases.

Future Outlook

The company anticipates discussing TJIM's results for the second quarter of 2026 in the next quarterly earnings discussion. Management notes uncertainty in the economic outlook due to the Middle East war, but the US economy has remained resilient to date.

Management Comments

• On April 1, 2026, Bimini Advisors Holdings, LLC, the parent of our registered investment advisor, Bimini Advisors, LLC completed the acquisition of eighty percent (80%) of the fully diluted equity interests of Tom Johnson Investment Management, LLC (TJIM), a privately held registered investment adviser.
• The purpose of the transaction is to both expand and diversify Bimini's advisory services segment.
• The Company has generated sufficient excess cash flows in recent periods such that it was not necessary to liquidate its entire Agency RMBS portfolio or any of its shares of Orchid Island to fund the transaction.
• Uneven market conditions for the Agency RMBS market caused Orchid Island Capital, Inc. ("Orchid") and Bimini's investment portfolio segment to report modest losses for the quarter.
• As 2026 began, economic activity remained resilient, including the labor market. However, the outlook has since changed after war broke out in the Middle East - the worlds most critical oil and chemical supply region suffered intense military attacks leading to supply interruptions.
• The ultimate outcome of the war remains uncertain nor is the end in sight at this moment.

Industry Context

StockSavvy.ai notes that Bimini Capital Management's Q1 2026 results reflect a strategic shift towards expanding its advisory services segment, evidenced by the acquisition of TJIM, while navigating challenging conditions in the Agency RMBS market. This diversification strategy is common among asset managers seeking to reduce reliance on volatile portfolio investments.

Comparison to Industry Standards

• The acquisition of TJIM, managing $1.6 billion in AUM, positions Bimini to compete more broadly in the investment advisory space.
• The net loss reported by Orchid Island Capital ($20.2 million) is significant and contrasts with the overall positive net income of Bimini, highlighting the performance divergence between its investment portfolio and advisory segments.
• The increase in advisory services revenue (43% YoY) outpaces many traditional asset managers, suggesting successful growth in this segment.
• The average yield on MBS (8.87%) and average cost of funds (5.55%) in Q1 2026 resulted in an average interest rate spread of 3.32%, which is a key performance indicator for MBS portfolio managers.

Related Party Transactions

• Bimini Advisors, LLC manages Orchid Island Capital's portfolio and receives management fees, overhead reimbursement, and repurchase, clearing, and administrative fees.
• Bimini Capital Management holds common stock in Orchid Island Capital, with changes in fair value recorded in the statement of operations.

Stakeholder Impact

• Shareholders benefit from increased book value per share and improved net income.
• Employees of TJIM are retained, indicating continuity and integration into Bimini's advisory services.
• Creditors are impacted by the company's leverage and funding costs, which have decreased.

Next Steps

• Discuss TJIM's results for the second quarter of 2026 during the next quarterly earnings discussion.
• Continue to operate an Agency RMBS portfolio, though with lower leverage.
• Potentially grow the Agency RMBS portfolio if sufficient free cash flow is generated.

Key Dates

Recommendation

The company shows positive growth in its advisory segment and improved profitability, but the losses in the MBS portfolio and the uncertain economic outlook due to geopolitical events warrant a cautious approach. The strategic acquisition of TJIM is a positive long-term development, but its full impact remains to be seen.

Keywords

Bimini Capital Management, 8-K, Q1 2026 Results, Tom Johnson Investment Management, TJIM Acquisition, MBS Portfolio, Advisory Services, Orchid Island Capital