Bimini Capital Management Inc - BMNM stock
OTC Symbol: BMNM | OTC Tier: OTCQB
About[edit]
Description and History[edit]
Bimini Capital Management, Inc. (OTC: BMNM) was incorporated in 2003 and is headquartered in Vero Beach, Florida. The company is engaged in the asset management business and operates in two segments, Asset Management and Investment Portfolio. It offers investment advisory services as well as administration and day-to-day operations services. In addition, the company invests in residential mortgage-backed securities. The company was originally named Opteum Inc. but changed its name to Bimini Capital Management, Inc. in September 2007.[1]
Bimini Advisors Holdings[edit]
Bimini Capital Management operates through its subsidiary, Bimini Advisors Holdings LLC, which manages its investment portfolio. The company's primary objective is to earn returns on its investments in the residential mortgage market while managing risk and preserving capital.
Orchid Island Capital[edit]
Bimini Advisors, which is a wholly-owned subsidiary of Bimini Capital Management, is responsible for managing and advising Orchid Island Capital, Inc. based on the terms of a management agreement. Bimini Advisors provides its management team, including its officers, and support personnel to Orchid Island Capital. Orchid Island Capital's board of directors oversees and supervises Bimini Advisors, and Bimini Advisors can only perform the functions delegated by Orchid's board. Orchid Island Capital is obligated to reimburse Bimini Advisors for any expenses incurred on its behalf. Additionally, Bimini Advisors allocates certain overhead costs to Orchid Island Capital based on the management agreement. If Orchid Island Capital terminates the management agreement without cause, they are required to pay Bimini Advisors a termination fee equal to three times the average annual management fee before or on the last day of the initial term or automatic renewal term.[2]
Investments[edit]
Bimini Capital Management invests in a variety of mortgage-related securities, including agency and non-agency residential mortgage-backed securities, commercial mortgage-backed securities, and other asset-backed securities. The company may also invest in other types of securities and financial instruments, including equity securities, debt securities, and derivatives.
Bimini Capital Management, Inc. is a specialty finance company that has two business segments. The first segment involves investing in mortgage-backed securities (MBS) and Orchid Island Capital, Inc. common stock in their own portfolio, as well as serving as the external manager of Orchid. In both cases, the MBS payments are guaranteed by Fannie Mae, Freddie Mac, or Ginnie Mae and backed by single-family residential mortgage loans. They are referred to as "Agency MBS". The investment strategy focuses on traditional pass-through Agency MBS and structured Agency MBS. The second segment is the investment portfolio segment that includes the investment activities conducted at Bimini Capital's wholly-owned subsidiary, Royal Palm Capital, LLC. The company's operations are classified into two reportable segments: the asset management segment and the investment portfolio segment. The asset management segment includes the investment advisory services provided by Bimini Advisors to Orchid, and the Company receives management fees and expense reimbursements from this arrangement.[2]
Stock Re-Purchase[edit]
Tender Offer 2021[edit]
On July 8, 2021 the company announced the results of a tender offer to purchase up to $2.2 million in value of shares of its Class A common stock. The offer was conducted using a “modified Dutch auction” approach. Bimini Capital accepted 812,879 shares of Class A Common Stock for purchase at a price of $1.85 per share. The total aggregate cost of the purchased shares was approximately $1.5 million, excluding fees and expenses relating to the Offer. The shares of Class A Common Stock accepted for purchase represent approximately 7.0% of Bimini Capital’s total outstanding shares of Class A Common Stock as of July 1, 2021. Based on these final numbers, following settlement of the Offer, Bimini Capital will have approximately 10,795,676 shares of Class A Common Stock outstanding.[3]
Tender Offer 2019[edit]
On July 8, 2019 the company announced the results of a tender offer. 1,100,000 shares of Class A Common Stock, representing approximately 8.7% of Bimini Capital’s total outstanding shares of Class A Common Stock as of June 28, 2019, were purchase at a price of $2.00 per share, for an aggregate cost of approximately $2.2 million, The company had approximately 11,608,555 shares of Class A Common Stock outstanding after the transaction.[4]
Financial Performance[edit]
2022[edit]
For the year ending 12/31/2022, Bimini reported total revenue of $14,019,000 and net income of ($19,823,000). Their cash balance was $6,773,000.[5]
2021[edit]
For the year ending 12/31/2021, Bimini reported total revenue of $12,936,000 and net income of $275,000. Their cash balance was $9,812,000.[5]
2020[edit]
For the year ending 12/31/2020, Bimini reported total revenue of $10,087000 and net income of ($5,489,000). Their cash balance was $10,911,000.[5]
2019[edit]
For the year ending 12/31/2020, Bimini reported total revenue of $10,061000 and net income of $13,299,000. Their cash balance was $12,385,000.[5]- ↑ Yahoo Finance. BMNM Stock Profile. Read on 4/20/2023.
- ↑ 2.0 2.1 Seeking Alpha. Bimini Capital Management, Inc. (BMNM) - FORM 10-K | Annual Report. December 31, 2022.
- ↑ businesswire. Bimini Capital Management Announces Final Results of Tender Offer. July 08, 2021.
- ↑ GlobeNewswire. Bimini Capital Management Announces Final Results of Tender Offer. July 8, 2019.
- ↑ 5.0 5.1 5.2 5.3 OTC Markets. BMNM Stock Financials. Read on 4/20/2023.
