Bimini Capital Management, Inc. reported a consolidated net income of $5.8 million for the fiscal year ending December 31, 2025, translating to earnings of $0.58 per share. This marks a significant turnaround from the previous year, where the company recorded a net loss of $1.3 million, or a loss of $0.13 per share. The increase in profitability was driven by a rise in advisory services revenue, which grew to $16.6 million from $12.8 million in 2024, alongside a slight increase in interest and dividend income.
The company's financial performance reflects a broader strategic shift, particularly with the announcement of a pending acquisition of an 80% stake in Tom Johnson Investment Management, LLC (TJIM), a registered investment adviser. This acquisition, expected to close in the second quarter of 2026, aims to transition Bimini into a pure asset management firm with a more diverse asset mix. The acquisition is anticipated to require a significant deployment of capital, which will alter the company's operational segments to include the management of Orchid Island Capital, Inc., alongside the new TJIM operations.
Operationally, Bimini Capital's investment portfolio consisted of $88.9 million in mortgage-backed securities (MBS) at fair value as of December 31, 2025, down from $122.3 million the previous year. The company reported a weighted average coupon of 5.73% for its MBS portfolio, with an effective duration of 2.23, indicating sensitivity to interest rate changes. The company also maintained a cash position of $12.7 million, which, along with cash flows from its MBS portfolio and advisory services, supports its liquidity needs.
In terms of market dynamics, Bimini Capital's results were influenced by interest rate trends and prepayment rates on the underlying mortgages of its MBS. The company experienced a decrease in interest expense due to a reduction in borrowing costs, which improved its net interest margin. However, the company remains cautious about future market conditions, particularly regarding interest rate volatility and the potential impact on its investment strategy.
Looking ahead, Bimini Capital's management expressed optimism about the company's ability to leverage its advisory services and the anticipated benefits from the TJIM acquisition. The company aims to continue generating attractive risk-adjusted returns while navigating the complexities of the current economic landscape, including ongoing inflationary pressures and evolving regulatory conditions.
About BIMINI CAPITAL MANAGEMENT, INC.
Bimini Capital Management, Inc. is a specialty finance company focused on investing in agency mortgage-backed securities (MBS) guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae, primarily backed by single-family residential mortgages. It operates two segments: managing its own leveraged and unleveraged MBS portfolio and externally managing Orchid Island Capital, a mortgage REIT. The company’s strategy emphasizes risk-adjusted returns, interest rate risk management, and maintaining regulatory exemptions through diversified, credit-risk-mitigated investments.
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