Orchid Island Capital reported a net loss of $91.2 million for the first quarter of 2020, primarily due to net realized and unrealized losses on RMBS and derivative instruments resulting from the COVID-19 pandemic's impact on financial markets. The company sold approximately $1.8 billion of RMBS and terminated interest rate swap positions to maintain liquidity and satisfy margin calls. Despite the losses, Orchid Island Capital maintained sufficient cash and liquidity and intends to continue paying monthly cash dividends.
Net loss of $91.2 million, or $1.41 per common share, was reported.
Net interest income was $19.1 million, or $0.30 per common share.
Net realized and unrealized losses on RMBS and derivative instruments totaled $108.2 million, or $1.68 per share.
A dividend of $0.24 per common share was declared and paid for the first quarter.
Orchid Island Capital expects to largely continue to operate as before, albeit with a smaller portfolio, and intends to continue to pay monthly cash dividends. The company believes its portfolio is well-positioned to withstand elevated levels of prepayments, and it benefits from lower funding costs.
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