Earnings call transcript: Bimini Capital's Q3 2025 reveals strong advisory growth

Bimini Capital Management reported its third-quarter 2025 earnings, showcasing a net income of $1.8 million, or $0.18 per share. The company experienced a notable increase in advisory service revenues, contributing to an improved book value per share. However, the stock showed a slight decline, closing at $1.76, down 0.57% from the previous session. Despite this, Bimini remains optimistic about future growth, particularly in the agency RMBS sector.

Key Takeaways

• Bimini Capital's Q3 2025 net income reached $1.8 million, boosting earnings per share to $0.18.
• Advisory service revenues surged by 35% in the quarter, enhancing overall financial performance.
• Stock price decreased by 0.57% post-earnings, reflecting cautious investor sentiment.
• The company anticipates favorable market conditions for agency RMBS to persist.

Company Performance

Bimini Capital Management demonstrated robust financial performance in the third quarter of 2025. The company’s net income for the nine months of 2025 reached $2.4 million, translating to $0.24 per share. This growth was primarily driven by a significant rise in advisory service revenues, which saw a 35% increase in the quarter alone. The book value per share rose to $0.92, up from $0.68 at the end of 2024, indicating strengthened financial health.

Financial Highlights

• Revenue from advisory services increased by 35% in Q3 2025.
• Net income for Q3 2025 was $1.8 million, translating to $0.18 per share.
• Book value per share rose to $0.92 from $0.68 at the end of 2024.
• Advisory Service Segment net income was $2.4 million, while the Investment Portfolio net income was $0.3 million.

Outlook & Guidance

Looking ahead, Bimini Capital remains optimistic about the prospects for its agency RMBS operations, expecting continued favorable market conditions. However, the company acknowledges potential economic uncertainties due to a recent government shutdown, which may temporarily affect economic data visibility. Despite these challenges, Bimini anticipates gaining clarity on the economic path over the next one to two quarters.

Executive Commentary

CEO Robert Cauley highlighted the strategic focus on agency RMBS, stating, "The path of economic performance, the level of interest rates, and the performance of agency RMBS appear to have to be at crossroads." He also emphasized the potential benefits of artificial intelligence in enhancing productivity and output.

Risks and Challenges

• Economic Uncertainty: Potential impacts from a government shutdown could obscure economic data and forecasts.
• Market Volatility: Fluctuations in interest rates and economic indicators may affect agency RMBS performance.
• Competitive Pressure: Maintaining competitive advantage in a dynamic market environment remains a challenge.

Q&A

No questions were raised during the earnings call, but investors were invited to reach out for further inquiries.

Full transcript - Bimini Capital Management Inc (BMNM) Q3 2025:

Kevin, Conference Operator: Good day, and thank you for standing by. Welcome to the Bimini Capital third quarter 2025 earnings call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there'll be a question-and-answer session. To ask a question during the session, you'll need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised today's conference is being recorded. I will now turn the conference over to your speaker today, Melissa Alfonzo. Please go ahead.

Melissa Alfonzo, Corporate Representative, Bimini Capital Management: Thanks, Kevin. Good morning, and welcome to the third quarter 2025 earnings conference call for Bimini Capital Management. This call is being recorded today, November 7, 2025. At this time, the company would like to remind the listeners that statements made during today's conference call relating to matters that are not historical facts are forward-looking statements subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Listeners are cautioned that such forward-looking statements are based on information currently available on the 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 the company's filings with the Securities and Exchange Commission, including the company's most recent annual report on Form 10-K.

The company assumes no obligation to update such forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors affecting forward-looking statements. Now, I would like to turn the conference over to the company's Chairman and Chief Executive Officer, Mr. Robert Cauley. Please go ahead, sir.

Robert Cauley, Chairman and Chief Executive Officer, Bimini Capital Management: Thanks, Melissa. Good morning, everyone. The path of economic performance, the level of interest rates, and the performance of agency RMBS appear to have to be at crossroads. During the third quarter, economic conditions appear to shift towards slower growth, lower rates, and generally solid performance for agency RMBS. The labor market, in particular, appears to have weakened significantly over the past two quarters, and the Federal Reserve intervened to lower the Fed funds rate by 25 basis points at each of their September and October meetings, although there are hints that it may not continue to do so at subsequent meetings unless conditions warrant. However, other measures of economic performance indicate the economy may not be so weak. Growth, as measured by GDP, remains well above zero. Retail sales and corporate earnings remain strong.

Developments with artificial intelligence have the potential to materially lift productivity and output, and the current administration has a profoundly pro-growth agenda, all of which suggests the current softness may be temporary. The outcome will likely emerge over the next quarter or two. While it remains to be seen just which path the economy takes going forward, the third quarter was conducive to solid performance for agency RMBS market and the company. The sector generated positive absolute and excess returns, and the company and ORCID generated positive total returns for the quarter as well. Also, ORCID continued to grow its capital through the issuance of shares of common stock through its after-market program, increasing the base on which the company's advisory service revenue is generated. While agency RMBS generated positive returns for the third quarter of 2025, returns available in the sector remain above historical averages.

To the extent such favorable market conditions persist, we expect that ORCID will be able to deploy new capital with the prospects for above-average returns. Like the second quarter of 2025, our advisory service revenues for the nine and three months ended September 30, 2025, continue to expand, increasing by 26% and 35% respectively over the comparable 2024 periods. Advisory service revenues increased by 17% over the second quarter of 2025. Likewise, interest revenue for the nine and three months ended September 30, 2025, increased by 17% and 3% respectively over the comparable 2024 periods. Interest revenues decreased by 3% from the second quarter of 2025. Our advisory service segment generated net income of $2.4 million, and our investment portfolio generated net income of $0.3 million for the third quarter of 2025.

On a consolidated basis, Bimini generated net income of $1.8 million, or $0.18 per share for this year's third quarter. For the nine months ended September 30, 2025, Bimini recorded net income of $2.4 million, or $0.24 per share. Book value per share as of September 30, 2025, was $0.92 versus $0.68 per share at December 31, 2024. As the fourth quarter unfolds, the market remains generally conducive for both agency mortgage rate performance and capital raising. Without most economic data available due to the government shutdown, markets are unable to clearly discern the evolving performance of the economy, and the Federal Reserve may withhold further monetary policy steps until there is more clarity on the economic outlook. In the interim, the company should continue to benefit from the favorable market conditions.

Finally, I would like to take this opportunity to acknowledge the contributions that Frank Chamot has made to Bimini over the years. Frank has been an associate with the company since our initial capital raise in late 2003 and has served as a director since 2009. Frank has been a trusted advisor since we first met, and his contributions will not be forgotten. Frank resigned this past Wednesday. At the same time, I would like to welcome Ashley Griffith to the board of Bimini. Ashley joined the board yesterday. He brings a wealth of knowledge and expertise in the financial services industry and the securities markets, and we look forward to his contributions to Bimini as we go forward. Operator, that concludes my prepared remarks. We can now open the call up to questions.

Kevin, Conference Operator: Thank you, ladies and gentlemen. If you have a question or a comment at this time, please press star 11 on your telephone. If your question has been answered or you wish to remove yourself from the queue, please press star 11 again. We'll pause for a moment while we compile our Q&A roster. Again, ladies and gentlemen, if you have a question or a comment at this time, please press star 11 on your telephone. I am not showing any questions at this time. I'll turn the call back over to Robert.

Robert Cauley, Chairman and Chief Executive Officer, Bimini Capital Management: Thank you, Operator, and thank you, everybody, for listening in. To the extent that you have a question that comes up later, or you listen to the replay and have a question, please feel free to call us at the office. The number is 772-231-1400. Otherwise, we look forward to speaking with you at the end of the fourth quarter. Thank you.

Kevin, Conference Operator: Ladies and gentlemen, that concludes today's presentation. You may now disconnect and have a wonderful day.

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