Orchid Island ORC Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Fri, January 30, 2026 astatine 10:14 AM CST 34 min read

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Friday, Jan. 30, 2026 astatine 10 a.m. ET

• Chairman, Chief Executive Officer, and President — Robert E. Cauley

• Chief Financial Officer and Chief Investment Officer — Hunter P. Haas

• Controller — Jerry Sintes

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Robert Cauley: Thank you, Melissa, and bully morning. I anticipation everybody's had a accidental to download our platform disconnected of our website. As usual, that's what we volition beryllium utilizing for the ground of the telephone today. And, again, arsenic usual, I'll conscionable locomotion you done the deck. I'm joined present contiguous by Jerry Sintes, our controller, and Hunter Haas, our main fiscal serviceman and main concern officer. Starting connected the 3rd page, I'll conscionable benignant of springiness you an outline. Jerry volition rapidly spell done our results and sermon our liquidity position.

I'll past spell done the marketplace developments, which fundamentally signifier the marketplace that we operated successful and the interaction that had connected some our results for the 4th fourth and past besides our outlook going guardant into 2026. Then Hunter volition walk immoderate clip discussing the portfolio, hedge positions and truthful forth, developments during the quarter, positioning successful the portfolio arsenic of today. And past we'll person a fewer concluding remarks. We person immoderate accusation successful the appendices that we privation to stock with you. And past we volition instrumentality your questions. So with that, I'll crook it implicit to Jerry.

Jerry Sintes: Thank you, Bob. If we spell to leafage five, I'll statesman with fiscal highlights for the 4th quarter. During the 4th quarter, we earned $103.4 cardinal successful nett income, which equates to 62¢ per stock compared to 53¢ successful Q3. Our publication worth astatine the extremity of the 4th was $7.54 compared to $7.33 astatine the extremity of Q3. Stockholder's equity astatine the extremity of Q4 was astir $1.4 billion. We paid dividends during the 4th of 36¢, which has been the aforesaid complaint for a mates of years now. Total instrumentality for the quarter, taking into relationship the alteration successful publication worth and the dividend, was 7.8% for Q4 compared to 6.7% for Q3.

During Q4, we had mean MBS of $9.5 cardinal compared to $7.7 cardinal successful Q3. The existent equilibrium was $10.6 billion, truthful we grew a lot, astir 27% during the quarter. Leverage for Q4 was 7.4%, which is the aforesaid arsenic Q3. Liquidity during the 4th astatine the extremity of the 4th was 57.7% and 57.1% astatine the extremity of Q3. That's a small higher than our historical numbers, which are usually astir percent. The crushed for that is chiefly due to the fact that of little haircuts, which are astir 4% astatine the extremity of the year. Prepayment speeds for the 4th were 15.7% compared to 10.1% successful Q3.