ORC FY 2025 net interest income jumps to USD 108.3 million

Orchid Island (ORC) reported FY 2025 GAAP net income of USD 159.03 million (USD 1.24 per share), versus USD 37.66 million (USD 0.57 per share) in FY 2024. FY 2025 net interest income was USD 108.27 million, reflecting interest income of USD 414 million (up 71% YoY) and interest expense of USD 305.73 million. ORC reported FY 2025 gains on RMBS and derivative contracts of USD 71.24 million and total expenses of USD 20.48 million. On a non-GAAP basis, ORC reported FY 2025 net earnings excluding realized and unrealized gains and losses of USD 87.79 million (USD 0.68 per share). In Q4 2025, ORC posted GAAP net income of USD 103.41 million (USD 0.62 per share) and net interest income of USD 38.48 million, with interest income of USD 132.19 million and interest expense of USD 93.71 million; gains on RMBS and derivative contracts were USD 32.67 million. ORC ended 2025 with an Agency RMBS portfolio of USD 10.63 billion at fair value (weighted average coupon 5.64%) and cash and cash equivalents of USD 665.9 million. Repurchase agreement obligations were USD 10.12 billion at period-end with a net weighted average borrowing cost of 3.98% and a weighted average remaining maturity of 39 days. Economic leverage was 7.4:1 at December 31, 2025 (vs. 7.3:1 at December 31, 2024). The company reported average three-month prepayment speeds of 15.7% in Q4 2025 (vs. 10.5% in Q4 2024). On capital actions, ORC issued 30.27 million shares under its October 2025 at-the-market program for USD 223.1 million in gross proceeds (USD 219.7 million net) through December 31, 2025, and repurchased 1.11 million shares in FY 2025 for USD 7.3 million (weighted average price USD 6.52). ORC paid FY 2025 dividends of USD 1.44 per share (USD 190.93 million total) and disclosed declared dividends of USD 0.12 per share for February 2026 and USD 0.12 per share for March 2026. Management commentary cited relatively stable interest rates late in 2025, two 25-basis-point Fed Funds rate cuts in Q4 2025, and a tightening in Agency RMBS spreads into early 2026 following a January 2026 directive for the Enterprises to purchase up to USD 200 billion of Agency RMBS in 2026.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Orchid Island Capital Inc. published the original content used to generate this news brief via EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system operated by the U.S. Securities and Exchange Commission (Ref. ID: 0001437749-26-004889), on February 20, 2026, and is solely responsible for the information contained therein.