Orchid Island Capital, Inc. (NYSE:ORC) Q1 2023 Results Conference Call April 28, 2023 10:00 AM ET

Company Participants

Robert Cauley - Chairman and CEO

Hunter Haas - CFO

Conference Call Participants

Jason Stewart - Jones Trading

Mikhail Goberman - JMP Securities

Christopher Nolan - Ladenburg Thalmann

Operator

Good morning and welcome to the First Quarter 2023 Earnings Conference Call for Orchid Island Capital. This call is being recorded today, April 28, 2023.

At this time, the Company would like to remind 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.

Listeners are cautioned that such forward-looking statements are based on information currently available on the management’s good faith, belief with respect to the 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.

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

Robert Cauley

Good morning. Thank you for joining us today.

Hopefully, everybody has been able to download our slide deck off of the website because as usual that’s what we will be going through. And as usual also I’ll just kind of walk you through the agenda. The first thing we’ll do is just briefly go over our highlights of our results for the quarter. Then I’ll go into a description of the market developments that we faced during the quarter, our financial results, and then I’ll go into greater detail on our portfolio characteristics, hedge position and so forth. But I also, unlike most calls, want to spend some time at the end to talk about development so far in Q2, which are, one, they’ve been very significant, especially for mortgage participants, but also because they’re very meaningful for us in our positioning and our outlook going forward.

So with that, just turning to slide 4. Orchid Island reported net income per share of $0.09, net earnings per share of negative $0.24, excluding realized and unrealized gains and losses in RMBS and derivative instruments, including net interest income and interest rate swaps. We had a gain of $0.33 per share from net realized and unrealized gains on RMBS and derivative instruments, again, including net interest income on the swaps.