Orchid Island Capital (ORC) investor relations material

Executive summary

• Net income for Q2 2026 was $89.2 million ($0.44 per share), reversing a Q1 loss of $0.11 per share and a Q2 2025 loss of $33.6 million.

• Book value per share increased to $7.22 from $7.08 sequentially.

• Total return for Q2 2026 was 6.21%, up from -1.3% in Q1 2026.

• Dividend was reduced to $0.30 per share from $0.36 in Q1 2026.

• Portfolio and market conditions improved after geopolitical disruptions, with Agency RMBS spreads stabilizing.

Financial highlights

• Net interest income for Q2 2026 was $60.0 million ($0.30 per share), with interest income of $164.2 million.

• Average portfolio size grew to $11.44 billion from $10.98 billion sequentially.

• Economic leverage ratio at quarter-end was 7.3:1, with adjusted leverage at 7.7:1.

• Prepayment speeds slowed to 10.9% from 14.7% in Q1 2026.

• Liquidity position was $776.0 million, about 54% of stockholders' equity.

Outlook and guidance

• Management expects continued uncertainty due to war, inflation, and Fed policy shifts.

• Funding rates are expected to rise modestly in the short to medium term.

• Mortgages are cheapening, potentially creating future investment opportunities.

• ROEs for new investments are rising, possibly exceeding 17%.

• The company plans to maintain modest leverage and focus on risk management amid market uncertainty.