Bimini Capital Management Announces Fourth Quarter 2012 Results

  • Fourth Quarter net loss of $1.9 Million
  • Book Value per Share of $0.33
  • MBS Portfolio Remains 100% Invested in Agency MBS
  • Company to Discuss Results on Friday, March 15, 2013, at 9:00 AM ET

VERO BEACH, Fla., March 14, 2013 (GLOBE NEWSWIRE) -- Bimini Capital Management, Inc. (OTCBB:BMNM) ("Bimini Capital" or the "Company"), a real estate investment trust ("REIT"), today announced results of operations for the three month period ended December 31, 2012. The Company reported a net loss of $1.9 million for the three month period ended December 31, 2012, compared with a net loss of $2.4 million for three month period ended December 31, 2011.

Details of Fourth Quarter 2012 Results of Operations

The Company's fourth quarter net loss of $1.9 million included net portfolio interest income of $0.6 million, net loss on mortgage-backed securities ("MBS") of $1.1 million (which includes non-cash portfolio mark to market losses, realized losses on securities sold and losses on funding hedges), audit, legal and other professional fees of $0.7 million, compensation and related benefits of $0.2 million, and other operating, general and administrative expenses of $0.4 million. During the fourth quarter, the Company sold (MBS with a market value at the time of sale of $57.4 million, resulting in realized losses of $0.4 million (based on security prices from September 30, 2012). The remaining net loss on MBS was due to fair value adjustments for the period.

Details of the MBS Portfolio Performance

The Company allocates capital to two MBS sub-portfolios, the pass-through MBS portfolio ("PT MBS"), and the structured MBS portfolio, consisting of interest only ("IO") and inverse interest-only ("IIO") securities. The PT MBS sub-portfolio is encumbered under repurchase agreement funding, while the structured MBS sub-portfolio is not. As a result of being encumbered, the PT MBS sub-portfolio requires the Company to maintain cash balances to meet price and/or prepayment related margin calls from lenders. As of September 30, 2012, approximately 53% of the Company's investable capital (which consists of equity in pledged PT MBS, available cash and unencumbered assets) was deployed in the PT MBS portfolio. At December 31, 2012, the allocation to the PT MBS had increased to approximately 61%. The relative allocation of capital between the structured MBS sub-portfolio and the PT MBS sub-portfolio changed materially in response to realized and anticipated levels of refinancing activity. The market value of the combined portfolio increased by approximately $42.4 million as the reallocation of capital to the PT MBS sub-portfolio, which is explicitly levered, resulted in $48.3 million of net-purchases of PT MBS. The structured MBS sub-portfolio decreased by approximately $2.6 million as a result of return on investment of $2.0 million, realized and unrealized losses of $0.4 million, and sales of $2.2 million, offset by purchases of $2.0 million.

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