Orchid Island Capital, Inc. (NYSE:ORC) Q1 2024 Results Conference Call April 26, 2024 10:00 AM ET

Company Participants

Robert Cauley - Chairman and CEO
Hunter Haas - CFO

Conference Call Participants

Matthew Erdner - Jones Trading
Mikhail Goberman - Citizens JMP
Christopher Nolan - Ladenburg Thalmann

Operator

Good morning and welcome to the First Quarter 2024 Earnings Conference Call for Orchid Island Capital. This call is being recorded today, April 26, 2024.

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.

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.

Now, I would like to turn the conference call 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. I hope everybody's had a chance to download the deck. As usual, I'll be the centerpiece of today's discussion. I'll be walking you through the deck and then at the end of that, we'll have a Q&A session. As usual, I'll just give you a quick rundown of the agenda. First thing, we'll do is go over our results for the quarter then we'll talk about the market developments that shaped our results and provide our outlook for the future, and then we'll dig into the details of the portfolio and our hedge position.

Turning to Slide 5. For the first quarter of 2024, our net income was $0.38 versus $0.52 in Q4 of last year. Our book value increased slightly by $0.02 over the last quarter. Total return was 4.18% versus 6.05% in Q4 and the dividend was unchanged for the quarter. The average MBS portfolio appears to have declined on Slide 6, but that's somewhat misleading because in the fourth quarter of last year, early in the quarter, we had to delever when rates were peaking, so that calculation is just a simple average of the beginning and ending.