Orchid Island Capital, Inc. (NYSE:ORC) Q3 2023 Earnings Conference Call October 27, 2023 10:00 AM ET

Company Participants

Robert Cauley - Chairman and CEO

Hunter Haas - CFO

Conference Call Participants

Matthew Erdner - JonesTrading

Christopher Nolan - Ladenburg Thalman

Mikhail Goberman - JMP Securities

Operator

Good morning and welcome to the Third Quarter 2023 Earnings Conference Call for Orchid Island Capital. This call is being recorded today, October 27, 2023.

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. The 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.

I would now like to turn the conference over to the Company's Chairman and Chief Executive Officer, Mr. Robert Cauley. Please go ahead, sir.

Robert Cauley

Thank you, operator, and good morning, and thank you for joining us today. Hopefully, everybody has had a chance to download our deck. You probably will notice there's some substantial changes made to the deck. Hopefully, you find it more useful. I think we presented the information in a better format that we've been doing up until now.

And with that, I will begin the outline of our talk today. We'll follow the same pattern and go over our financial results for the quarter, talk briefly about our market developments and how those shape our results and how they form our outlook going forward and then get into a discussion of the portfolio and our hedging positions and so forth.

So with that, turning to Slide 5. Here are the high-level numbers for the third quarter. Net income for the quarter was a loss of $1.68 versus income of $0.25 last year. Book value, given the moves in the market, it was a very rough quarter for mortgage investors. As you can see, our book value was down just over 20% from $11.16 to $892. Unfortunately, October has been equally is intense, and our books down about 14 - a little over 14% through yesterday. So obviously, especially since September 1, it's been a very challenging mortgage market environment.