Orchid Island Capital posts Q3 loss on widening spreads after Fed charge hikes (NYSE:ORC)

Orchid Island Capital (NYSE:ORC) Q3 outcomes had been harm by declining web curiosity revenue and losses on its residential mortgage-backed securities and derivatives contracts throughout the quarter, because the Federal Reserve aggressively raised charges, which led to widening spreads between company RMBS securities relative to comparable period U.S. Treasurys or swaps.

“Actions by the Fed as described above could stop the sector from performing properly within the close to time period however, if the economic system does contract and enter a recession, the sector may do properly on a relative efficiency foundation owing to the shortage of credit score publicity of Company RMBS,” mentioned Chairman and CEO Robert E. Cauley.

Q3 GAAP EPS of -$2.40 vs. $1.00 within the year-ago quarter.

Q3 web curiosity revenue of $14.2M fell from $27.1M in Q2 and from $32.6M in Q3 2021.

E-book worth per frequent share of $11.42 at Sept. 30, 2022 vs. $14.36 at June 30.

Throughout the quarter, Orchid Island (ORC) acquired $96.6M in scheduled and unscheduled repayments and prepayments, equating to a 3-month fixed prepayment charge of ~6.5%. That in contrast with $122.4M in repayments/prepayments for a CPR of ~9.4% in Q2.

Complete return of -16.7%, comprised of $0.545 dividend per frequent share and $2.94 lower in ebook worth per frequent share, divided by starting ebook worth per frequent share.

Losses on RMBS and spinoff contracts had been $93.5M in Q3, vs. $82.3M in Q2 and $2.89M within the year-ago quarter.

Internet portfolio lack of $79.3M within the quarter vs. $55.2M in Q2 and web portfolio revenue of $29.7M in Q2 2021.

Q3 bills of $5.22M elevated from $4.94M in Q2 and from $3.67M in Q3 2021.

Estimated ebook worth per share at Oct. 26 of $10.60-$10.70.

Convention name on Oct. 28 at 10:00 AM ET.

Earlier, Orchid Island Capital (ORC) EPS of -$2.40, web curiosity revenue of $14.25M