Bimini Capital Management (OTCMKTS:BMNM) detailed fourth-quarter and full-year 2025 results on its March 13, 2026 earnings call, pointing to steady fixed-income markets for most of 2025 and strong performance from its advisory relationship with Orchid Island Capital. Management also discussed a planned acquisition in its advisory business and the reinstatement of a share repurchase program.
Market backdrop and fixed-income conditions
Chairman and CEO Robert Cauley said fixed-income markets were “calm” as 2025 ended and 2026 began, noting that interest rates stayed in a “very tight range” throughout 2025, particularly in the fourth quarter. He added that implied interest-rate volatility continued a steady decline that began in April 2025, following turbulence earlier in the year around the announcement of tariffs and reciprocal tariffs.
Looking into 2026, Cauley said economic activity had remained resilient, including the labor market, but the outlook changed after war broke out in Iran. He said intense military attacks in a region critical to oil and chemical supplies led to supply interruptions, and that inflation—already “sticky”—could move higher, making the economic outlook “very uncertain.”
Advisory services tied to Orchid Island Capital
Bimini’s advisory services revenue increased in the fourth quarter, which Cauley attributed to favorable markets and results at Orchid Island Capital. He reported that Orchid posted net income of $103.4 million for the quarter and that Orchid’s stockholders’ equity increased from $1.086 billion to $3.72 billion.
As a result, Bimini’s advisory services revenue rose to $4.7 million in the fourth quarter of 2025, up from $4.5 million in the third quarter of 2025. For the full year, Cauley said Orchid shareholders’ equity increased by approximately 105%, helping drive Bimini’s advisory services revenue to $16.6 million in 2025 versus $12.8 million in 2024, a 30% year-over-year increase. He also noted that Orchid had continued to grow stockholders’ equity in early 2026 based on Orchid’s public disclosures.
Investment portfolio results and full-year profitability
Cauley said Bimini’s investment portfolio segment also benefited from favorable market conditions in the fourth quarter and across 2025. While the investment portfolio shrank by about 27% during the year, he reported that net interest and dividend income increased to $2.45 million in 2025 from $1.52 million in 2024.
He added that net realized and unrealized gains and losses on Bimini’s RMBS portfolio, Orchid shares, and hedging derivatives were positive for both the fourth quarter and the full year.
For the quarter, Cauley said Bimini generated net income of $1.52 million and, with a $1.87 million tax benefit, net income after tax of $3.38 million. For the full year 2025, he reported pre-tax income of $4.49 million, a tax benefit of $1.31 million, and after-tax net income of $5.8 million. Cauley said that equated to an 85% return on beginning-of-year shareholders’ equity.
Capital actions: share repurchases and planned reinvestment
The company also reinstated a share buyback plan, which Cauley said would allow Bimini to invest in its stock to the extent management believes it is undervalued. The plan permits repurchases of up to $2.5 million of stock.
During the Q&A, Accretive Wealth Partners’ Gary Ribe asked about executing buybacks given limited trading volume and whether there was a banker to contact for a block transaction. Cauley said the company uses a 10b5-1 plan and identified the agent as Ladenburg Thalmann.
Ribe also asked whether future cash generation would be redeployed to scale Royal Palm back up. Cauley responded that redeploying funds into the portfolio is the company’s “official plan.” He added that the company could potentially pay down some of its trust preferred debt if it deemed doing so attractive.
TJIM acquisition: sourcing, structure, and funding
Management spent much of the discussion on a previously announced transaction involving its advisory platform. Cauley reiterated that on Jan. 13, 2026, the company announced that Bimini Advisors Holdings, LLC—a subsidiary of Royal Palm Capital—entered into an agreement to purchase 80% of the fully diluted equity interest of Tom Johnson Investment Management (TJIM), a privately held registered investment adviser. The transaction is expected to close at the beginning of the second quarter of 2026.
As of the announcement date, Cauley said TJIM had approximately $1.6 billion of assets under management across equity and fixed income markets, with a “diverse” set of management agreements including individual accounts, sub-advisory agreements, and wrap programs. He said TJIM’s existing owners will retain an ownership interest and that Bimini intends to retain TJIM’s staff and investment management team after closing.
Cauley said the purpose of the transaction is to “expand and diversify” Bimini’s advisory services segment. He also said that if the deal closes as anticipated, Bimini would continue to operate an agency RMBS portfolio, but it would initially be “much smaller” because capital for the acquisition would come from available cash and liquidating the majority of the agency RMBS portfolio held at year-end 2025. He said leverage would be lower than was typical prior to the acquisition, and that positive operating cash flow—if generated—would be deployed into the portfolio.
In response to Ribe’s questions, Cauley said the TJIM deal was sourced through a search process with a banker at Westmere Capital, Richard Jin, and was not a competitive bid process. He said the company had a profile for relatively small private asset managers and identified TJIM as an attractive target for diversification and its track record of performance and profitability. Cauley also emphasized that there would be “no borrowing” to close the deal, reiterating that the portfolio would shrink substantially and that no borrowed funds would be used to fund the acquisition.
Asked about a reference in the agreement to a 30% EBITDA margin target, Cauley said he could not provide details yet, though he said the company did not envision the target being a challenge and referenced the presence of a bonus pool. He added that initially TJIM would operate as a standalone RIA alongside Bimini Advisors, LLC, which manages Orchid, with two RIAs “underneath the same roof.”
Cauley said the company expects to provide additional detail on the transaction, its operating plans, and to introduce TJIM management on the first-quarter 2026 earnings call, assuming the transaction closes as anticipated.
About Bimini Capital Management (OTCMKTS:BMNM)
Bimini Capital Management, Inc, through its subsidiaries, operates as a specialty finance company in the United States. The company operates in two segments, Asset Management and Investment Portfolio. The Asset Management segment includes investment advisory services by Bimini Advisors to Orchid Island Capital, Inc and Royal Palm Capital, LLC. The Investment Portfolio segment engages in investment activities conducted by Royal Palm Capital, LLC. It invests in residential mortgage-backed securities.
