8 Q4 2025 Earnings Supplemental Materials January 30, 2025 1 Disclaimers Forward-Looking Information This presentation contains forward-looking statements and information. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements include statements preceded by, followed by or that include the words "may," "could," "would," "should," "believe," "expect," "anticipate," "plan," "estimate," "target," "project," " ...

Core Viewpoint - Orchid Island Capital, Inc. (NYSE:ORC) is identified as one of the most undervalued REIT stocks currently available for investment, with a Neutral rating and a price target of $7.50 set by Compass Point [1]. Group 1: Company Performance and Projections - Orchid Island Capital announced preliminary projections for Q4 2025, estimating a book value per share of $7.54 and a net income per share of $0.62, which includes $0.43 in realized and unrealized profits from residential mortgage-backed securities (RMBS) and derivatives [3]. - The company operates as a specialty finance entity that invests in Agency residential mortgage-backed securities on a leveraged basis [3]. Group 2: Dividend and Financial Concerns - Compass Point expressed concerns regarding Orchid Island Capital's high dividend payout relative to its core return on equity (ROE) and GAAP earnings, which may hinder the growth of book value per share [2]. Group 3: Market Context - Political and policy factors are anticipated to significantly influence mortgage asset performance in the upcoming quarters, creating opportunities for mortgage-backed securities (MBS) investors [1].

Core Insights - Orchid Island Capital, Inc. reported strong fourth-quarter 2025 results, driven by favorable conditions in the Agency residential mortgage-backed securities (RMBS) market [1] - The company achieved core earnings per share (EPS) of approximately $0.19, exceeding consensus estimates of $0.17–$0.18 [1] - Net income on a GAAP basis was $103.4 million, or $0.62 per common share, significantly above expectations due to substantial gains [1] Financial Performance - Net interest income for the quarter was $38.5 million, or $0.23 per common share, surpassing expectations of around $35.74 million [1] - The strong results included net realized and unrealized gains of $70.7 million, or $0.43 per common share, from RMBS and derivative instruments [2] - Total expenses were well-managed at $5.8 million, or $0.04 per common share [2] Dividends and Returns - The company declared and paid total dividends of $0.36 per common share for the fourth quarter [3] - ORC generated a total return of 7.8% for the quarter, including the $0.36 dividend per share and a $0.21 increase in book value per common share, ending at $7.54 [3] Annual Performance Metrics - For the full year 2025, ORC achieved net income of $159.3 million, equating to $1.24 per common share [4] - Key valuation metrics include a price-to-earnings (P/E) ratio of approximately 18.44 and a price-to-sales ratio of about 9.15 [4] - The debt-to-equity ratio (adjusted leverage) of around 7.4 indicates the company's use of leverage, common in the mREIT sector [4] Market Positioning - ORC's performance reflects effective portfolio management amid stable interest rates, Federal Reserve rate cuts, and low volatility in the RMBS market [5] - The company is well-positioned for dividend-focused investors seeking both income and potential capital appreciation [5]

Core Viewpoint - Orchid Island Capital, Inc. reported strong financial results for the fourth quarter and full year of 2025, driven by favorable market conditions in the Agency RMBS sector, including stable interest rates and two interest rate cuts by the Federal Reserve [5][6][10]. Fourth Quarter 2025 Results - The company generated a net income of $103.4 million, or $0.62 per common share, compared to $5.6 million for the same period in 2024 [11]. - Total dividends declared and paid for the fourth quarter were $0.36 per common share, contributing to a total return of 7.78% [7][12]. - The average Agency RMBS portfolio increased from $7.7 billion in Q3 2025 to $9.5 billion in Q4 2025, with interest income rising by approximately $23.8 million [11]. Full-Year 2025 Results - For the year ended December 31, 2025, net income was $159.3 million, or $1.24 per common share, up from $37.7 million in 2024 [13]. - The company declared total dividends of $1.44 per common share for the year, resulting in a total return of 11.00% [14]. - Interest income for the year was approximately $414.0 million, with a yield on the average Agency RMBS of 5.51% [13]. Other Financial Highlights - Orchid's book value per common share was $7.54 as of December 31, 2025, reflecting a decrease of $0.55 per share for the year [30]. - The company maintained a strong liquidity position of $791.8 million, representing 58% of stockholder's equity [7]. - Shareholders' equity more than doubled in 2025, increasing by 105% [10]. Market Conditions and Management Commentary - The fourth quarter was characterized by a six-week government shutdown, which limited economic data availability, complicating the Federal Reserve's monetary policy decisions [6]. - The Fed's two interest rate cuts during the quarter were beneficial for levered Agency RMBS investors, lowering funding costs [9]. - The company noted that while marginal returns in the Agency RMBS sector are less attractive than in previous years, other fixed income sectors have also performed well [9]. Portfolio and Financing - As of December 31, 2025, the company's total mortgage assets were valued at $10.6 billion, with fixed-rate RMBS comprising 99.9% of the portfolio [17]. - The adjusted leverage ratio was 7.4:1, with outstanding repurchase obligations of approximately $10.1 billion [20]. - The company has entered into various hedging strategies to manage interest rate risks associated with its funding [24].

Financial Performance - Estimated book value per share as of December 31, 2025, is $7.54, with total stockholders' equity approximately $1.4 billion[4] - Estimated net income per share for the quarter ended December 31, 2025, is $0.62, including $0.43 per share of net realized and unrealized gains on RMBS and derivative instruments[5] - Total dividends declared during the quarter were $0.36 per share, indicating a payout ratio of approximately 58% based on estimated net income[5] - Estimated total return on equity for the quarter ended December 31, 2025, is 7.8%, comprising $0.57 per share from dividends and an increase in book value[6] - The estimated total return on equity includes a $0.21 increase in book value per share from September 30, 2025[6] Shareholder Information - The company had 181,985,900 shares of common stock outstanding as of December 31, 2025, up from 148,239,401 shares as of September 30, 2025[3] RMBS Portfolio - The RMBS portfolio characteristics include a total of $10.68 billion in mortgage assets with an average coupon of 5.62%[11] - The company’s RMBS portfolio is primarily composed of Agency RMBS, focusing on traditional pass-through and structured RMBS[8] - Total mortgage assets amounted to $10,628.7 million, with Fannie Mae assets at $5,690.965 million (53.5%) and Freddie Mac assets at $4,937.693 million (46.5%)[14] - Whole pool assets represented 94.0% of total mortgage assets, amounting to $9,993.971 million[15] - Non-whole pool assets accounted for 6.0% of total mortgage assets, valued at $634.687 million[15] Borrowings - Total borrowings reached $10,115.466 million with a weighted average rate of 3.98%[16] - The largest counterparty for borrowings was Citigroup Global Markets Inc. with $527.566 million, accounting for 5.2% of total borrowings[16] - The longest maturity of borrowings is 11/13/2026, with an average maturity of 39 days[16] - The average repo rate across borrowings was 4.03%[16] Futures Contracts - Five-year Treasury futures contracts valued at $109.30 with a market value of the short position at $133.9 million[12] - Ten-year Treasury futures contracts valued at $112.44 with a market value of the short position at $101.2 million[12] Risk Factors - Forward-looking statements indicate that actual results may differ and are subject to review by the company's independent registered public accounting firm[9] - Rate shock grand total recorded at $(30,087) thousand[13] Investment Management - The company’s investment strategy is managed by Bimini Advisors, LLC, a registered investment adviser[8]

Core Insights - Orchid Island Capital, Inc. announced its estimated fourth quarter 2025 results and portfolio characteristics as of December 31, 2025 [1] Share Information - As of January 14, 2026, the Company had 183,345,932 shares of common stock outstanding, an increase from 181,985,900 shares as of December 31, 2025, and 148,239,401 shares as of September 30, 2025 [2] Book Value Per Share - The estimated book value per share as of December 31, 2025, was $7.54, calculated by dividing total stockholders' equity of approximately $1.4 billion by the total number of outstanding shares [3] Net Income and Gains - The estimated net income per share for the quarter ended December 31, 2025, was $0.62, which includes an estimated $0.43 per share of net realized and unrealized gains on RMBS and derivative instruments [4][9] - Total dividends declared during the quarter were $0.36 per share [4] Total Return on Equity - The estimated total return on equity for the quarter ended December 31, 2025, was 7.8%, calculated as the sum of dividends declared and changes in book value divided by stockholders' equity at the beginning of the quarter [5][9] RMBS Portfolio Characteristics - The Company invests in Agency RMBS, focusing on traditional pass-through Agency RMBS and structured Agency RMBS [6] - As of December 31, 2025, the total mortgage assets were approximately $10.63 billion, with Fannie Mae and Freddie Mac representing 53.5% and 46.5% of the portfolio, respectively [13] Borrowings and Counterparty Exposure - Total borrowings as of December 31, 2025, amounted to $10.12 billion, with a weighted average rate of 3.98% [15] - The Company has significant exposure to various counterparties, with Citigroup Global Markets Inc. being the largest at $527.57 million [15]

Core Points - Orchid Island Capital, Inc. declared a monthly cash dividend of $0.12 per share for January 2026, payable on February 26, 2026, to shareholders of record on January 30, 2026, with an ex-dividend date also on January 30, 2026 [1] - The company intends to make regular monthly cash distributions to its common stockholders, and to qualify as a real estate investment trust (REIT), it must distribute at least 90% of its REIT taxable income annually [2] - The estimated results for the fourth quarter of 2025, including estimated book value per share and estimated GAAP net income per share, will be released on January 14, 2026, and will be subject to audit [3] - The company will release its year-end and fourth quarter 2025 results on January 29, 2026, followed by an earnings conference call on January 30, 2026 [4] - Orchid Island Capital, Inc. is a specialty finance company that invests in Agency RMBS, focusing on traditional pass-through Agency RMBS and structured Agency RMBS [5] Additional Information - The company has not established a minimum distribution payment level and is not assured of its ability to make future distributions [2] - An audio archive of the earnings conference call will be available for 30 days after the call [4] - The company is managed by Bimini Advisors, LLC, a registered investment adviser [5]

Core Insights - HyOrc Corporation has successfully completed the Factory Acceptance Test (FAT) for its 500kW Organic Rankine Cycle (ORC) turbine, which is now ready for shipment to a project in Turkey [1][5]. Group 1: Factory Acceptance Test Details - The FAT was conducted by Bureau Veritas, a global testing, inspection, and certification group, on December 30, 2025, at HyOrc's manufacturing facility in Tamil Nadu, India [2]. - The inspection confirmed that the turbine met all required mechanical and operational criteria, with successful speed and RPM testing across multiple nozzle configurations, showing smooth acceleration and stable performance without any abnormalities [3]. Group 2: Company Overview and Future Plans - HyOrc Corporation specializes in developing and commercializing patented hydrogen-capable combustion and waste-to-fuel systems for various sectors, including shipping, rail, and off-grid power [6]. - The company has 737 million shares issued and is preparing for a Nasdaq uplist, indicating potential growth and increased visibility in the market [6].

Core Insights - Orchid Island Capital, Inc. (NYSE:ORC) is recognized as one of the 13 highest paying monthly dividend stocks to buy [1] - Compass Point initiated coverage on Orchid Island Capital with a Neutral rating and a price target of $7.50 [2] Financial Performance - In Q3 2025, Orchid Island Capital reported a total return of 6.7% on an unannualized basis, benefiting from stable market conditions for levered Agency RMBS investors [3][4] - The company generated a net income of $72.1 million for the quarter, a significant increase from $17.3 million in the same period last year [6] - Book value increased by $0.12 per share, reflecting net income of $0.53 per share, offset by dividend payments of $0.36 per share [6] Investment Strategy - Despite an increase in prepayments due to declining rates, Orchid Island Capital successfully identified attractive investment opportunities through careful security selection and risk management [5] - The company maintained leverage at approximately 7.4x, with the potential to increase leverage if market returns improve [5]

Core Viewpoint - Orchid Island Capital, Inc. has declared a monthly cash dividend of $0.12 per share for December 2025, payable on January 29, 2026, to shareholders of record as of December 31, 2025, with the ex-dividend date also on December 31, 2025. The next dividend announcement is expected on January 7, 2026 [1][7]. Dividend Information - The company intends to make regular monthly cash distributions to its common stockholders, adhering to the requirement of distributing at least 90% of its REIT taxable income annually to qualify as a real estate investment trust (REIT) [2]. Shareholder Information - As of December 9, 2025, the company had 179,058,553 shares of common stock outstanding, an increase from 174,548,004 shares as of November 30, 2025, and 148,239,401 shares as of September 30, 2025 [3]. RMBS Portfolio Characteristics - Orchid Island Capital, Inc. focuses on investing in Agency RMBS, including traditional pass-through Agency RMBS and structured Agency RMBS. The company is managed by Bimini Advisors, LLC, a registered investment adviser [4]. RMBS Valuation Characteristics - As of November 30, 2025, the total mortgage assets of the company were valued at $9,635,257,000, with 56.3% from Fannie Mae and 43.7% from Freddie Mac [10]. The portfolio consists of various fixed-rate RMBS with different maturities and coupon rates, indicating a diverse investment strategy [6][9]. Borrowings and Counterparty Exposure - The company had total borrowings of $9,066,335,000 as of November 30, 2025, with a weighted average interest rate of 4.12% and a maturity profile extending to November 13, 2026 [13]. The major counterparties include Citigroup Global Markets Inc., J.P. Morgan Securities LLC, and Merrill Lynch, with significant exposure to each [13].