Orchid Island Capital, Inc. and Bimini Money Administration, Inc. Announce 3rd Modification to Management Settlement

  • 3rd Amendment to Management Agreement

  • Internalization of Funding and Custody/Settlement Operations

  • Choosing of Patrick Doyle by Bimini Capital, Inc.

VERO Seaside, Fla., November 17, 2021–(Enterprise WIRE)–Orchid Island Money, Inc. (“Orchid”) (NYSE: ORC) and Bimini Funds, Inc. (“Bimini”) (OTCQB: BMNM) jointly declared nowadays that helpful as of November 16, 2021, Orchid and its exterior manager, Bimini Advisors, LLC (the “Supervisor”), entered into a Third Modification (the “Modification”) to the Management Settlement among Orchid and the Manager dated February 20, 2013, as formerly amended (the “Arrangement”). The Supervisor is a wholly-owned subsidiary of Bimini.

Pursuant to the Settlement, the Supervisor performs management providers relating to the mortgage-backed securities portfolio, enterprise routines and day-to-day functions of Orchid. In thought for those expert services, the Manager receives management fees as properly as reimbursement of sure charges and expenditures from Orchid. Also pursuant to the Agreement, sure repurchase agreement investing, clearing and administrative providers are provided to Orchid by AVM, L.P. (“AVM”). Orchid pays the service fees for all those providers immediately to AVM.

Bimini and the Manager are using measures to internalize the repurchase settlement investing, clearing and administrative providers that are at present supplied by AVM. Pursuant to the Modification, Orchid and the Supervisor have agreed that Orchid’s agreements with AVM will be terminated and the Supervisor will turn out to be dependable for the general performance of repurchase agreement investing, clearing and administrative solutions.

Pursuing termination of the AVM preparations and in consideration for the repurchase agreement investing, clearing and administrative expert services to be executed by the Manager, Orchid will pay out the next expenses to the Manager:

  • A day by day price for repurchase arrangement funding transaction products and services equivalent to the merchandise of the fantastic principal stability of repurchase arrangement funding in put as of the conclusion of such day and the relevant basis stage component set forth in the Modification, divided by 360 and

  • A charge for the clearing and operational products and services offered by staff of the Manager equal to $10,000 for every month.

Pursuant to the Amendment, Orchid is also expected to pay out its allocable share of fees incurred for safekeeping, transactions and hard cash providers presented to Orchid by the Financial institution of New York Mellon (the “BNYM Payment”) instantly to the Bank of New York Mellon. Orchid’s allocable share of the BNYM Cost will be equal to Orchid’s share of all the assets under management by the Supervisor, inclusive of the assets of Bimini (calculated as of the 1st day of every single month).

AVM also performs repurchase agreement investing, clearing and administrative companies for Bimini with regard to its mortgage loan-backed securities portfolio. The Manager’s internalization of these companies will permit Bimini to terminate its arrangements with AVM, and the Supervisor will come to be accountable for the overall performance of these companies for Bimini.

Bimini has employed Patrick Doyle, helpful as of December 1, 2021, to lead the Manager’s repurchase settlement trading, clearing and administrative solutions. From 1998 until eventually joining Bimini, Mr. Doyle was utilized by AVM, most a short while ago as Head of Funding and Liquidity.

Commenting on the Amendment, the internalization of specific features and the selecting of Patrick Doyle, Robert E. Cauley, the Chairman and CEO of Orchid and Bimini, mentioned, “We are incredibly happy to welcome Pat to Bimini. Pat has considerable abilities and knowledge in the repo markets, as properly as comprehensive information of the settlement and functions linked practices of our enterprise. As a manager of repo funding operations at AVM, Pat has labored with Bimini because 2003. After these essential functions are being done by Bimini for Orchid, we will be ready to present them in an efficient and cost-helpful manner with the assistance of one particular of the funding market’s leading industry experts.” Mr. Doyle included, “The prospect to work with Bimini is extremely enjoyable for me. I have been functioning with Bimini as a consumer considering the fact that their inception in 2003. This prospect is a organic in good shape for each of us. I glance forward to improving Bimini’s qualities to fund their portfolios underneath management, to create new operational efficiencies, and to increase the administration of liquidity dangers.”

About Orchid Island Cash, Inc.

Orchid Island Cash, Inc. is a specialty finance firm that invests on a leveraged basis in Company RMBS. Our financial investment approach focuses on, and our portfolio is composed of, two groups of Agency RMBS: (i) common move-by means of Agency RMBS, these types of as home loan move-by certificates and collateralized home loan obligations issued by Fannie Mae, Freddie Mac or Ginnie Mae, and (ii) structured Agency RMBS. The Enterprise is managed by Bimini Advisors, LLC, a registered investment adviser with the Securities and Exchange Commission.

About Bimini Cash Administration, Inc.

Bimini Capital Management, Inc. invests primarily in, but is not constrained to investing in, residential house loan-relevant securities issued by Fannie Mae, Freddie Mac and Ginnie Mae. Its aim is to receive returns on the distribute involving the produce on its assets and its expenditures, such as the interest cost on the resources it borrows. In addition, Bimini generates a sizeable part of its revenue serving as the supervisor of the MBS portfolio of Orchid Island Money, Inc.

Ahead-Searching Statements

This push launch contains forward-searching statements inside of the meaning of the Personal Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-seeking statements include, but are not minimal to, statements about the changeover of services from AVM to the Supervisor and the general performance of repurchase arrangement funding, clearing and administrative expert services by the Manager. These ahead-searching statements are based on Orchid’s and Bimini’s existing expectations, but these statements are not certain to take place. Investors really should not spot undue reliance on ahead-wanting statements. For further discussion of the variables that could influence outcomes, remember to refer to the “Possibility Factors” segment of the Yearly Report on Form 10-K for the fiscal yr finished December 31, 2020 of Bimini and Orchid, respectively.

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Orchid Island Capital, Inc.
Robert E. Cauley
Telephone: (772) 231-1400