Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |||
Sep. 30, 2013 | Nov. 07, 2013 | Nov. 07, 2013 | Nov. 07, 2013 | |
[CommonClassAMember] | [CommonClassBMember] | [CommonClassCMember] | ||
Document Type | '10-Q | ' | ' | ' |
Amendment Flag | 'false | ' | ' | ' |
Document Period End Date | 30-Sep-13 | ' | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' | ' |
Document Fiscal Period Focus | 'Q3 | ' | ' | ' |
Entity Registrant Name | 'Bimini Capital Management, Inc. | ' | ' | ' |
Entity Central Index Key | '0001275477 | ' | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' | ' |
Entity Voluntary Filers | 'No | ' | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' | ' |
Entity Well Known Seasoned Issuer | 'No | ' | ' | ' |
Entity Common Stock Shares Outstanding | ' | 11,509,756 | 31,938 | 31,938 |
Trading Symbol | 'BMNM | ' | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Mortgage-backed securities, at fair value | ' | ' |
Pledged to counterparties | $315,398,460 | $158,396,450 |
Unpledged | 55,942,550 | 9,758,557 |
Total mortgage-backed securities | 371,341,010 | 168,155,007 |
Cash and cash equivalents | 10,479,242 | 6,592,561 |
Restricted cash | 2,710,585 | 840,500 |
Retained interests in securitizations | 3,398,546 | 3,336,009 |
Accrued interest receivable | 1,562,983 | 718,895 |
Property and equipment, net | 3,693,988 | 3,774,310 |
Receivable for securities sold, pledged to counterparties | 41,150,840 | 0 |
Prepaid expenses and other assets, net | 3,865,882 | 3,935,669 |
Total Assets | 438,203,076 | 187,352,951 |
Liabilities | ' | ' |
Repurchase agreements | 336,739,006 | 150,294,174 |
Junior subordinated notes due to Bimini Capital Trust II | 26,804,440 | 26,804,440 |
Payable for unsettled securities purchased | 38,720,351 | 0 |
Accrued interest payable | 122,368 | 123,446 |
Accounts payable, accrued expenses and other | 811,497 | 6,614,119 |
Total Liabilities | 403,197,662 | 183,836,179 |
Equity | ' | ' |
Preferred stock | 0 | 0 |
Common stock | 11,574 | 10,681 |
Additional paid in capital | 334,810,312 | 334,254,432 |
Accumulated deficit | -331,472,881 | -330,748,341 |
Stockholders Equity | 3,349,005 | 3,516,772 |
Noncontrolling Interests | 31,656,409 | 0 |
Total Equity | 35,005,414 | 3,516,772 |
Total Liabilities and Equity | 438,203,076 | 187,352,951 |
[VariableInterestEntityPrimaryBeneficiaryMember] | ' | ' |
Mortgage-backed securities, at fair value | ' | ' |
Total mortgage-backed securities | 331,786,933 | 0 |
Receivable for securities sold, pledged to counterparties | 41,150,840 | 0 |
Cash and cash equivalents and restricted cash | 10,481,831 | 0 |
Accrued interest receivable and other assets | 2,060,230 | 0 |
Liabilities | ' | ' |
Repurchase agreements | 301,656,523 | 0 |
Payable for unsettled securities purchased | 38,720,351 | 0 |
Accrued interest payable and other liabilities | $198,880 | $0 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Portfolio Income | ' | ' | ' | ' |
Interest income | $2,767,554 | $1,164,675 | $6,773,393 | $3,487,913 |
Interest expense | 329,059 | 103,676 | 936,617 | 285,315 |
Net interest income, before interest on junior subordinated notes | 2,438,495 | 1,060,999 | 5,836,776 | 3,202,598 |
Interest expense on junior subordinated notes | 250,507 | 265,707 | 746,072 | 791,891 |
Net interest income | 2,187,988 | 795,292 | 5,090,704 | 2,410,707 |
Unrealized (losses) gains on mortgage-backed securities | 112,109 | 315,542 | -10,772,942 | -1,404,489 |
Realized (losses) gains on mortgage-backed securities | -667,182 | 3,275 | -1,541,169 | 173,660 |
Gains (losses) on Eurodollar futures | -2,449,925 | -337,700 | 4,146,144 | -763,037 |
Net portfolio (deficiency) income | -817,010 | 776,409 | -3,077,263 | 416,841 |
Other income: | ' | ' | ' | ' |
Gains on retained interests in securitizations | 780,424 | 737,567 | 2,535,603 | 4,204,994 |
Gains on release of loan loss reserves | 1,700,000 | 0 | 4,737,260 | 0 |
Other (expense) income | -12,301 | 58,800 | -21,018 | 36,002 |
Total other income | 2,468,123 | 796,367 | 7,251,845 | 4,240,996 |
Expenses | ' | ' | ' | ' |
Compensation and related benefits | 731,968 | 391,767 | 1,584,939 | 1,231,139 |
Directors fees and liability insurance | 217,447 | 138,215 | 608,153 | 412,109 |
Orchid Island Capital, Inc. IPO expenses | 0 | 0 | 3,042,322 | 0 |
Audit, legal and other professional fees | 443,573 | 1,408,722 | 1,166,515 | 2,116,029 |
Direct REIT operating expenses | 106,913 | 136,406 | 340,584 | 408,784 |
Other administrative | 297,287 | 259,348 | 678,917 | 603,688 |
Total expenses | 1,797,188 | 2,334,458 | 7,421,430 | 4,771,749 |
Net loss before income tax benefit | -146,075 | -761,682 | -3,246,848 | -113,912 |
Income tax benefit | -1,287,154 | 0 | -1,287,154 | 0 |
Net (loss) income | 1,141,079 | -761,682 | -1,959,694 | -113,912 |
Less: Loss attributable to noncontrolling interests | -704,191 | 0 | -1,235,154 | 0 |
Net (Loss) Income attributable to Bimini Capital stockholders | $1,845,270 | ($761,682) | ($724,540) | ($113,912) |
[CommonClassAMember] | ' | ' | ' | ' |
Basic and Diluted Net (loss) income Per Share of: | ' | ' | ' | ' |
Basic | $0.16 | ($0.07) | ($0.07) | ($0.01) |
Diluted | $0.16 | ($0.02) | ($0.07) | ($0.01) |
Weighted Average Shares Outstanding | ' | ' | ' | ' |
Weighted Average Number Of Basic Shares Outstanding | 11,258,669 | 10,329,421 | 10,782,858 | 10,232,169 |
Weighted Average Number Of Diluted Shares Outstanding | 11,258,669 | 10,252,672 | 10,782,858 | 10,232,169 |
[CommonClassBMember] | ' | ' | ' | ' |
Basic and Diluted Net (loss) income Per Share of: | ' | ' | ' | ' |
Basic | $0.16 | ($0.07) | ($0.07) | ($0.01) |
Diluted | $0.16 | ($0.07) | ($0.07) | ($0.01) |
Weighted Average Shares Outstanding | ' | ' | ' | ' |
Weighted Average Number Of Basic Shares Outstanding | 31,938 | 31,938 | 31,938 | 31,938 |
Weighted Average Number Of Diluted Shares Outstanding | 31,938 | 31,938 | 31,938 | 31,938 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (USD $) | Total | [CommonStockMember] | [AdditionalPaidInCapitalMember] | [RetainedEarningsMember] | [NoncontrollingInterestMember] |
Beginning Balances at Dec. 31, 2012 | $3,516,772 | $10,681 | $334,254,432 | ($330,748,341) | $0 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Net loss | -1,959,694 | ' | ' | -724,540 | -1,235,154 |
Issuance of common shares of Orchid Island Capital, Inc. | 35,400,000 | ' | 278,238 | ' | 35,121,762 |
Cash dividends paid to noncontrolling interests | 2,230,199 | ' | ' | ' | -2,230,199 |
Issuance of Class A common shares for equity plan exercises | ' | 893 | -893 | ' | ' |
Amortization of equity plan compensation | 278,535 | ' | 278,535 | ' | ' |
Ending Balances at Sep. 30, 2013 | $35,005,414 | $11,574 | $334,810,312 | ($331,472,881) | $31,656,409 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net loss | ($1,959,694) | ($113,912) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ' | ' |
Stock based compensation and equity plan amortization | 278,535 | 126,973 |
Depreciation | 91,263 | 89,333 |
Losses on mortgage-backed securities | 12,314,111 | 1,230,829 |
Gains on retained interests in securitizations | -2,535,603 | -4,204,994 |
Gains on release of loan loss reserves | -4,737,260 | 0 |
Changes in operating assets and liabilities | ' | ' |
Accrued interest receivable | -804,353 | 237,178 |
Prepaid expenses and other assets, net | 613,973 | 978,154 |
Accrued interest payable | -1,078 | 14,985 |
Accounts payable, accrued expenses and other | -1,065,362 | -657,325 |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 2,194,532 | -2,298,779 |
From mortgage-backed securities investments | ' | ' |
Purchases | -508,382,196 | -177,679,884 |
Sales | 259,090,754 | 127,708,846 |
Principal repayments | 30,776,918 | 14,158,821 |
Payments received on retained interests in securitizations | 2,473,066 | 3,385,778 |
(Increase) decrease in restricted cash | -1,870,085 | 152,031 |
Purchases of property and equipment | -10,941 | -9,924 |
NET CASH USED IN INVESTING ACTIVITIES | -217,922,484 | -32,284,332 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Proceeds from repurchase agreements | 2,871,900,327 | 662,456,590 |
Principal payments on repurchase agreements | -2,685,455,495 | -624,863,487 |
Issuance of common shares of Orchid Island Capital, Inc. | 35,400,000 | 0 |
Cash dividends paid to noncontrolling interests | 2,230,199 | 0 |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 219,614,633 | 37,593,103 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 3,886,681 | 3,009,992 |
CASH AND CASH EQUIVALENTS, beginning of the period | 6,592,561 | 4,300,785 |
CASH AND CASH EQUIVALENTS, end of the period | 10,479,242 | 7,310,777 |
Cash paid during the period for: | ' | ' |
Interest | 1,683,767 | 1,062,221 |
Income Taxes | 39,386 | 40,000 |
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ' | ' |
Securities acquisitions settled in later period | 38,720,351 | 0 |
Securities sold settled in later period | $40,955,374 | $0 |
Organization_and_Significant_A
Organization and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' |
Organization and Significant Accounting Policies | ' |
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | |
Organization and Business Description | |
Bimini Capital Management, Inc., a Maryland corporation (“Bimini Capital”), was formed in September 2003 for the purpose of creating and managing a leveraged investment portfolio consisting of residential mortgage-backed securities (“MBS”). Bimini Capital has elected to be taxed as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”). As a REIT, Bimini Capital is generally not subject to federal income tax on its REIT taxable income provided that it distributes to its stockholders at least 90% of its REIT taxable income on an annual basis. In addition, a REIT must meet other provisions of the Code to retain its special tax status. Bimini Capital's website is located at http://www.biminicapital.com. | |
As used in this document, discussions related to the “Company”, refer to the consolidated entity, including Bimini Capital, our wholly-owned subsidiaries, and our consolidated VIE. References to “Bimini Capital” and the “parent” refer to Bimini Capital Management, Inc. as a separate entity. | |
On February 20, 2013, Orchid Island Capital, Inc. (“Orchid”) completed the initial public offering (“IPO”) of its common stock. Prior to the completion of its IPO, Orchid was a wholly-owned qualified REIT subsidiary of Bimini Capital. Subsequent to the completion of the IPO and through September 30, 2013, Orchid continues to be consolidated as our VIE. As used in this document, discussions related to REIT qualifying activities include the MBS portfolios of Bimini Capital and Orchid. | |
Discussions related to Bimini Capital's taxable REIT subsidiaries or non-REIT eligible assets refer to Bimini Advisors, Inc. and its wholly-owned subsidiary, Bimini Advisors, LLC (together “Bimini Advisors”) and MortCo TRS, LLC (“MortCo”) and its consolidated subsidiaries. | |
Consolidation | |
The accompanying consolidated financial statements include the accounts of Bimini Capital, Orchid, Bimini Advisors and MortCo, as well as the wholly-owned subsidiaries of MortCo. All inter-company accounts and transactions have been eliminated from the consolidated financial statements. | |
ASC Topic 810, Consolidation (“ASC 810”), requires the consolidation of a variable interest entity ("VIE") by an enterprise if it is deemed the primary beneficiary of the VIE. Further, ASC 810 requires a qualitative assessment to determine the primary beneficiary of a VIE and ongoing assessments of whether an enterprise is the primary beneficiary of a VIE as well as additional disclosures for entities that have variable interests in VIEs. | |
At the time of Orchid's IPO and as of September 30, 2013, management has concluded Orchid is a VIE because Orchid's equity holders lack the ability through voting rights to make decisions about its activities that have a significant effect on the success of Orchid. Management has also concluded that Bimini Capital is the primary beneficiary of Orchid because, under the management agreement between Bimini Advisors and Orchid, Bimini Capital has the power to direct the activities of Orchid that most significantly impact its economic performance. As a result, subsequent to Orchid's IPO and through September 30, 2013, the Company has continued to consolidate Orchid in its Consolidated Financial Statements. While the results of operations of Orchid are included in net income (loss) in the Company's Consolidated Financial Statements, net income (loss) attributable to common stockholders does not include the portion attributable to noncontrolling interests. Additionally, noncontrolling interests in Orchid are recorded in our Consolidated Balance Sheet and our Consolidated Statement of Equity within the equity section but separate from the stockholders' equity. | |
Assets recognized as a result of consolidating Orchid do not represent additional assets that could be used to satisfy claims against Bimini Capital's assets. Conversely, liabilities recognized as a result of consolidating Orchid do not represent additional claims on Bimini Capital's assets; rather, they represent claims against the assets of Orchid. Creditors and stockholders of Orchid have no recourse to the assets of Bimini Capital. | |
As further described in Note 6, Bimini Capital has a common share investment in a trust used in connection with the issuance of Bimini Capital's junior subordinated notes. Pursuant to ASC 810, Bimini Capital's common share investment in the trust has not been consolidated in the financial statements of Bimini Capital, and accordingly, this investment has been accounted for on the equity method. | |
Liquidity | |
Material losses incurred by the Company in 2006 and 2007 attributable to the former mortgage origination operations of MortCo significantly reduced Bimini Capital's equity capital base and the size of its MBS portfolio when compared to pre-2006 levels. Ongoing litigation costs stemming from both the former operations of MortCo and Bimini Capital itself have caused the Company's overhead to be high in relation to its portfolio size. The smaller capital base has made it difficult to generate sufficient net interest income to cover expenses. | |
In response, beginning in 2007, the Company took significant steps to reduce the leverage in its balance sheet, reduce its debt service costs, reduce expenses, settle various litigation matters, and alter its investment strategy for holding MBS securities. In addition, the Company evaluated and pursued capital raising opportunities for Orchid. After pursuing previous efforts to raise capital at Orchid, Orchid completed its initial public offering of common stock on February 20, 2013. Bimini Capital and Bimini Advisors acted as sponsor to Orchid by agreeing to fund all underwriting, legal and other costs of the offering, which totaled approximately $3.0 million during the nine months ended September 30, 2013. Orchid has no obligation or intent to reimburse Bimini Capital and Bimini Advisors, either directly or indirectly, for the offering costs; therefore, they are expensed in the Company's consolidated statement of operations. At such time as Orchid has $100 million of stockholders equity, Bimini Capital will begin to allocate certain overhead costs to Orchid on a pro rata basis. Attracting external capital to Orchid will allow Bimini Advisors to receive fees for managing the Orchid portfolio, decrease the expenses of Bimini Capital and Bimini Advisors by allocating certain overhead costs to Orchid (once Orchid's stockholders' equity exceeds $100 million), and share in distributions, if any, paid by Orchid to its stockholders. Upon the closing of Orchid's IPO, and at September 30, 2013, Bimini Capital owned approximately 29.38% of the outstanding common stock of Orchid. | |
At September 30, 2013, the Company had cash and cash equivalents of approximately $10.5 million, a MBS portfolio of approximately $371.3 million and equity capital base of approximately $35.0 million, including approximately $3.3 million attributable to the stockholders of Bimini Capital and $31.7 million attributable to noncontrolling interests. The Company generated cash flows of approximately $37.4 million from principal and interest payments on its MBS portfolio and approximately $2.5 million from retained interests in securitizations during the nine months ended September 30, 2013. However, if cash resources are, at any time, insufficient to satisfy the Company's liquidity requirements, such as when cash flow from operations are materially negative, the Company may be required to pledge additional assets to meet margin calls, liquidate assets, sell additional debt or equity securities or pursue other financing alternatives. | |
Basis of Presentation | |
The accompanying consolidated financial statements are prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States (“GAAP”). In the opinion of management, all adjustments considered necessary for a fair presentation of the Company's consolidated financial position, results of operations and cash flows have been included and are of a normal and recurring nature. | |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates affecting the accompanying financial statements include the fair values of MBS, Eurodollar futures contracts, retained interests and asset valuation allowances. | |
Statement of Comprehensive Income (Loss) | |
In accordance with FASB ASC Topic 220, Comprehensive Income, a statement of comprehensive income has not been included as the Company has no items of other comprehensive income. Comprehensive (loss) income is the same as net (loss) income for all periods presented. | |
Cash and Cash Equivalents and Restricted Cash | |
Cash and cash equivalents include cash on deposit with financial institutions and highly liquid investments with original maturities of three months or less. Restricted cash, of approximately $2,711,000 and approximately $227,000 at September 30, 2013 and December 31, 2012, respectively, represents cash held by a broker as margin on Eurodollar futures contracts. Restricted cash, totaling $614,000 at December 31, 2012, represents cash held on deposit as collateral with repurchase agreement counterparties, which may be used to make principal and interest payments on the related repurchase agreements. | |
The Company maintains cash balances at three banks, and, at times, balances may exceed federally insured limits. The Company has not experienced any losses related to these balances. All non-interest bearing cash balances were fully insured at December 31, 2012 due to a temporary federal program in effect from December 31, 2010 through December 31, 2012. Under the program, there was no limit to the amount of insurance for eligible accounts. Beginning January 1, 2013, insurance reverted to $250,000 per depositor at each financial institution. At September 30, 2013, the Company's cash deposits exceeded federally insured limits by approximately $9.1 million. Restricted cash balances are uninsured, but are held in separate customer accounts that are segregated from the general funds of the counterparty. The Company believes that it is not exposed to any significant credit risk on cash and cash equivalents or restricted cash balances. | |
Mortgage-Backed Securities | |
The Company invests primarily in mortgage pass-through (“PT”) certificates, collateralized mortgage obligations, and interest only (“IO”) securities and inverse interest only (“IIO”) securities representing interest in or obligations backed by pools of mortgage-backed loans (collectively, “MBS”). These investments meet the requirements to be classified as available for sale under ASC 320-10-25, Debt and Equity Securities (which requires the securities to be carried at fair value on the balance sheet with changes in fair value charged to other comprehensive income, a component of stockholders' equity). However, the Company has elected to account for its investment in MBS under the fair value option. Electing the fair value option allows the Company to record changes in fair value in the statement of operations, which, in management's view, more appropriately reflects the results of our operations for a particular reporting period and is consistent with the underlying economics and how the portfolio is managed. | |
The Company records MBS transactions on the trade date. Security purchases that have not settled as of the balance sheet date are included in the MBS balance with an offsetting liability recorded, whereas securities sold that have not settled as of the balance sheet date are removed from the MBS balance with an offsetting receivable recorded. | |
The fair value of the Company's investment in MBS is governed by FASB ASC Topic 820, Fair Value Measurement. The definition of fair value in FASB ASC Topic 820 focuses on the price that would be received to sell the asset or paid to transfer the liability in an orderly transaction between market participants at the measurement date. The fair value measurement assumes that the transaction to sell the asset or transfer the liability either occurs in the principal market for the asset or liability, or in the absence of a principal market, occurs in the most advantageous market for the asset or liability. Estimated fair values for MBS are based on the average of third-party broker quotes received and/or independent pricing sources when available. | |
Income on PT MBS is based on the stated interest rate of the security. Premiums or discounts present at the date of purchase are not amortized. For IO securities, the income is accrued based on the carrying value and the effective yield. The difference between income accrued and the interest received on the security is characterized as a return of investment and serves to reduce the asset's carrying value. At each reporting date, the effective yield is adjusted prospectively from the reporting period based on the new estimate of prepayments and the contractual terms of the security. For IIO securities, effective yield and income recognition calculations also take into account the index value applicable to the security. Changes in fair value of MBS during each reporting period are recorded in earnings and reported as unrealized gains or losses on mortgage-backed securities in the accompanying consolidated statements of operations. | |
Retained Interests in Securitizations | |
From 2005 to 2007, MortCo participated in securitization transactions as part of its mortgage origination business. Retained interests in the securitization transactions were initially recorded at their fair value when issued by MortCo. Subsequent adjustments to fair value are reflected in earnings. Quoted market prices for these assets are generally not available, so the Company estimates fair value based on the present value of expected future cash flows using management's best estimates of key assumptions, which include expected credit losses, prepayment speeds, weighted-average life, and discount rates commensurate with the inherent risks of the asset. | |
Derivative Financial Instruments | |
The Company has entered into derivative financial instruments to manage interest rate risk, facilitate asset/liability strategies, and manage other exposures, and it may continue to do so in the future. The Company has elected to not treat any of its derivative financial instruments as hedges. FASB ASC Topic 815, Derivatives and Hedging, requires that all derivative investments be carried at fair value. Changes in fair value are recorded in earnings for each period. | |
Financial Instruments | |
FASB ASC Topic 825, Financial Instruments, requires disclosure of the fair value of financial instruments for which it is practicable to estimate that value, either in the body of the financial statements or in the accompanying notes. MBS, Eurodollar futures contracts and retained interests in securitization transactions are accounted for at fair value in the consolidated balance sheets. The methods and assumptions used to estimate fair value for these instruments are presented in Note 12 of the financial statements. | |
The estimated fair value of cash and cash equivalents, restricted cash, accrued interest receivable, receivable for securities sold, repurchase agreements, accrued interest payable, payable for unsettled securities purchases and accounts payable and other liabilities generally approximates their carrying value as of September 30, 2013 and December 31, 2012, due to the short-term nature of these financial instruments. | |
It is impractical to estimate the fair value of the Company's junior subordinated notes. Currently, there is a limited market for these types of instruments and the Company is unable to ascertain what interest rates would be available to the Company for similar financial instruments. Information regarding carrying amount, effective interest rate and maturity date for these instruments is presented in Note 6 to the consolidated financial statements. | |
Property and Equipment, net | |
Property and equipment, net, consists of computer equipment with a depreciable life of 3 years, office furniture and equipment with depreciable lives of 8 to 20 years, land which has no depreciable life, and buildings and improvements with depreciable lives of 30 years. Property and equipment is recorded at acquisition cost and depreciated using the straight-line method over the estimated useful lives of the assets. | |
The Company's property and equipment as of September 30, 2013 and December 31, 2012, is presented net of accumulated depreciation of approximately $1,022,000 and $931,000, respectively. Depreciation expense was approximately $91,000 and $89,000 for the nine month periods ended September 30, 2013 and 2012, respectively, and $31,000 and $30,000 for three month periods ended September 30, 2013 and 2012, respectively. | |
Repurchase Agreements | |
The Company finances the acquisition of the majority of its PT MBS through the use of repurchase agreements under master repurchase agreements. Pursuant to ASC Topic 860, Transfers and Servicing, the Company accounts for repurchase transactions as collateralized financing transactions, which are carried at their contractual amounts, including accrued interest, as specified in the respective agreements. | |
Share-Based Compensation | |
The Company follows the provisions of FASB ASC Topic 718, Compensation – Stock Compensation, to account for stock and stock-based awards. For stock and stock-based awards issued to employees, a compensation charge is recorded against earnings over the vesting period based on the fair value of the award. Payments pursuant to dividend equivalent rights, which are granted along with certain equity based awards, are charged to stockholders' equity when declared. The Company applies a zero forfeiture rate for its equity based awards, as such awards have been granted to a limited number of employees and historical forfeitures have been minimal. A significant forfeiture, or an indication that significant forfeitures may occur, would result in a revised forfeiture rate which would be accounted for prospectively as a change in an estimate. For transactions with non-employees in which services are performed in exchange for the Company's common stock or other equity instruments, the transactions are recorded on the basis of the fair value of the service received or the fair value of the equity instruments issued, whichever is more readily measurable at the date of issuance. | |
Earnings Per Share | |
The Company follows the provisions of FASB ASC Topic 260, Earnings Per Share, which requires companies with complex capital structures, common stock equivalents or two (or more) classes of securities that participate in the declared dividends to present both basic and diluted earnings per share (“EPS”) on the face of the consolidated statement of operations. Basic EPS is calculated as income available to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted EPS is calculated using the “if converted” method for common stock equivalents. However, the common stock equivalents are not included in computing diluted EPS if the result is anti-dilutive. | |
Outstanding shares of Class B Common Stock, participating and convertible into Class A Common Stock, are entitled to receive dividends in an amount equal to the dividends declared on each share of Class A Common Stock if, as and when authorized and declared by the Board of Directors. Accordingly, shares of the Class B Common Stock are included in the computation of basic EPS using the two-class method and, consequently, are presented separately from Class A Common Stock. | |
The shares of Class C Common Stock are not included in the basic EPS computation as these shares do not have participation rights. The outstanding shares of Class B and Class C Common Stock are not included in the computation of diluted EPS for the Class A Common Stock as the conditions for conversion into shares of Class A Common Stock were not met. | |
Reclassifications | |
Certain prior period amounts have been reclassified to conform to the current period presentations. | |
Income Taxes | |
Bimini Capital has elected to be taxed as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”), and Orchid, until the closing of its IPO on February 20, 2013, was a “qualified REIT subsidiary” of Bimini Capital under the Code. Beginning with its initial short tax period commencing on February 20, 2013 and ending December 31, 2013, Orchid expects to elect and intends to qualify to be taxed as a REIT, and Orchid will file a REIT tax return separate for Bimini Capital. REITs are generally not subject to federal income tax on their REIT taxable income provided that they distribute to their stockholders at least 90% of their REIT taxable income on an annual basis. In addition, a REIT must meet other provisions of the Code to retain its tax status. At September 30, 2013, management believes that the Company has complied with Code requirements and Bimini Capital continues to qualify as a REIT. As further described in Note 10, Income Taxes, Bimini Advisors and MortCo are taxpaying entities for income tax purposes and are taxed separately from the REIT. | |
The Company's U.S. federal income tax returns for years ended on or after December 31, 2010 remain open for examination. Although management believes its calculations for tax returns are correct and the positions taken thereon are reasonable, the final outcome of tax audits could be materially different from the tax returns filed by the Company, and those differences could result in significant costs or benefits to the Company. | |
The Company measures, recognizes and presents its uncertain tax positions in accordance with FASB ASC 740, Income Taxes. Under that guidance, the Company assesses the likelihood, based on their technical merit, that tax positions will be sustained upon examination based on the facts, circumstances and information available at the end of each period. The measurement of uncertain tax positions is adjusted when new information is available, or when an event occurs that requires a change. | |
Recent Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This new standard requires the netting of unrecognized tax benefits against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions. Under the new standard, unrecognized tax benefits will be netted against all available same-jurisdiction loss or other tax carryforwards that would be utilized, rather than only against carryforwards that are created by the unrecognized tax benefits. The ASU is effective beginning January 1, 2014 on either a prospective or retrospective basis. The guidance represents a change in financial statement presentation only and the Company does not expect that this ASU will have a material impact on its consolidated financial results. | |
In July 2013, the FASB issued ASU 2013-10, Derivatives and Hedging (Topic 815): Inclusion of the Fed Funds Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes. The standard permits the Fed Funds Effective Swap Rate to be used as a benchmark interest rate for hedge accounting purposes. The new guidance is effective for hedging relationships entered into on or after July 17, 2013. The Company does not expect that this ASU will have a material impact on its consolidated financial statements. | |
In June 2013, the FASB issued ASU 2013-08, Financial Services – Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements. The amendments in this Update modify the guidance for determining whether an entity is an investment company, update the measurement requirements for noncontrolling interests in other investment companies and require additional disclosures for investment companies under US GAAP. The amendments in the Update develop a two-tiered approach for the assessment of whether an entity is an investment company which requires an entity to possess certain fundamental characteristics while allowing judgment in assessing other typical characteristics. The amendments in this Update also revise the measurement guidance in Topic 946 such that investment companies must measure noncontrolling ownership interests in other investment companies at fair value, rather than applying the equity method of accounting to such interests. The new guidance is effective for an entity's interim and annual reporting periods in fiscal years that begin after December 15, 2013. Earlier application is prohibited. The Company does not expect that this ASU will have a material impact on its financial statements. | |
In February 2013, the FASB issued ASU 2013-04, Liabilities (Topic 405) - Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date ("ASU 2013-04"). The objective of this ASU is to provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, except for obligations addressed within existing US GAAP. The amendments in ASU 2013-04 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013, and should be retrospectively applied to all prior periods presented for those obligations resulting from joint and several liability arrangements within the ASU's scope that exist at the beginning of an entity's fiscal year of adoption. Early adoption is permitted. The Company does not expect that this ASU will have a material impact on its consolidated financial statements. | |
In January 2013, the FASB released ASU 2013-01 Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, which served solely to clarify the scope of financial instruments included in ASU 2011-11 as there was concern about diversity in practice. The objectives of ASU 2013-01 and ASU 2011-11 are to support further convergence of US GAAP and IFRS requirements. These updates are effective for annual reporting periods beginning on or after January 1, 2013 and interim periods within those annual periods. The adoption of this ASU had no effect on the Company's consolidated financial statements. | |
In December 2011, the FASB issued ASU 2011-11, Disclosures about Offsetting Assets and Liabilities, requiring improved information about financial instruments and derivative instruments that are either (1) offset in accordance with ASC 210-20-45 or ASC 815-10-45 or (2) subject to an enforceable master netting arrangement. This information will enable users of an entity's financial statements to evaluate the effect or potential effect of netting arrangements on an entity's financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments in the scope of this ASU. The Company is required to apply the amendments for annual periods beginning on or after January 1, 2013, and interim periods within those annual periods. The disclosures required are to be provided retrospectively for all comparative periods presented. The adoption of this ASU had no effect on the Company's consolidated financial statements. |
Mortgage_Backed_Securities
Mortgage Backed Securities | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Mortgage Backed Securities [Abstract] | ' | |||||
Mortgage-Backed Securities | ' | |||||
NOTE 2. MORTGAGE-BACKED SECURITIES | ||||||
The following table presents the Company's MBS portfolio as of September 30, 2013 and December 31, 2012: | ||||||
(in thousands) | ||||||
30-Sep-13 | 31-Dec-12 | |||||
Pass-Through MBS: | ||||||
Hybrid Adjustable-rate Mortgages | $ | 134,754 | $ | 87,693 | ||
Adjustable-rate Mortgages | 6,150 | 20,857 | ||||
Fixed-rate Mortgages | 207,529 | 49,846 | ||||
Total Pass-Through MBS | 348,433 | 158,396 | ||||
Structured MBS: | ||||||
Interest-Only Securities | 16,948 | 5,244 | ||||
Inverse Interest-Only Securities | 5,960 | 4,515 | ||||
Total Structured MBS | 22,908 | 9,759 | ||||
Total | $ | 371,341 | $ | 168,155 | ||
Included in the table above at September 30, 2013 are $331.8 million of MBS assets that may only be used to settle liabilities of the consolidated VIE. | ||||||
The following table summarizes the Company's MBS portfolio as of September 30, 2013 and December 31, 2012, according to the contractual maturities of the securities in the portfolio. Actual maturities of MBS investments are generally shorter than stated contractual maturities and are affected by the contractual lives of the underlying mortgages, periodic payments of principal, and prepayments of principal. | ||||||
(in thousands) | ||||||
30-Sep-13 | 31-Dec-12 | |||||
Greater than one year and less than five years | $ | 61 | $ | 163 | ||
Greater than five years and less than ten years | 1,662 | 12,980 | ||||
Greater than or equal to ten years | 369,618 | 155,012 | ||||
Total | $ | 371,341 | $ | 168,155 | ||
The Company generally pledges its MBS assets as collateral under repurchase agreements. At September 30, 2013 and December 31, 2012, the Company had unpledged securities totaling $55.9 million and $9.8 million, respectively. The unpledged balance at September 30, 2013 includes unsettled securities purchases with a fair value of approximately $38.7 million that will be pledged as collateral under repurchase agreements on the settlement date in October 2013. |
Retained_Interests_In_Securiti
Retained Interests In Securitizations | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Retained Interests In Securitizations [Abstract] | ' | |||||
Retained Interests In Securitizations | ' | |||||
NOTE 3. RETAINED INTERESTS IN SECURITIZATIONS | ||||||
The following table summarizes the estimated fair value of the Company's retained interests in asset backed securities as of September 30, 2013 and December 31, 2012: | ||||||
(in thousands) | ||||||
Series | Issue Date | 30-Sep-13 | 31-Dec-12 | |||
HMAC 2004-1 | 4-Mar-04 | $ | - | $ | 74 | |
HMAC 2004-2 | 10-May-04 | - | 890 | |||
HMAC 2004-3 | 30-Jun-04 | 1,482 | 750 | |||
HMAC 2004-4 | 16-Aug-04 | 1,457 | 881 | |||
HMAC 2004-5 | 28-Sep-04 | 460 | 741 | |||
Total | $ | 3,399 | $ | 3,336 |
Repurchase_Agreements
Repurchase Agreements | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Disclosure of Repurchase Agreements [Abstract] | ' | |||||||||||
Repurchase Agreements | ' | |||||||||||
NOTE 4. REPURCHASE AGREEMENTS | ||||||||||||
The Company's repurchase agreements typically have maturities of less than six months at inception, with some having longer terms. Should a counterparty decide not to renew a repurchase agreement at maturity, the Company must either refinance with another lender or be in a position to satisfy the obligation. | ||||||||||||
As of September 30, 2013, the Company had outstanding repurchase agreement obligations of approximately $336.7 million with a net weighted average borrowing rate of 0.37%. These agreements were collateralized by MBS with a fair value, including accrued interest and receivable for securities sold, of approximately $357.5 million. As of December 31, 2012, the Company had outstanding repurchase agreement obligations of approximately $150.3 million with a net weighted average borrowing rate of 0.49%. These agreements were collateralized by MBS with a fair value, including accrued interest, of approximately $158.8 million, and cash pledged to counterparties of approximately $0.6. | ||||||||||||
As of September 30, 2013 and December 31, 2012, the Company's repurchase agreements had remaining maturities as summarized below: | ||||||||||||
(in thousands) | ||||||||||||
OVERNIGHT | BETWEEN 2 | BETWEEN 31 | GREATER | |||||||||
(1 DAY OR | AND | AND | THAN | |||||||||
LESS) | 30 DAYS | 90 DAYS | 90 DAYS | TOTAL | ||||||||
30-Sep-13 | ||||||||||||
Fair value of securities pledged, including accrued | ||||||||||||
interest receivable and receivable for | ||||||||||||
securities sold | $ | 25,386 | $ | 230,401 | $ | 101,706 | $ | - | $ | 357,493 | ||
Repurchase agreement liabilities associated with | ||||||||||||
these securities | $ | 25,067 | $ | 216,084 | $ | 95,588 | $ | - | $ | 336,739 | ||
Net weighted average borrowing rate | 0.35% | 0.38% | 0.34% | - | 0.37% | |||||||
31-Dec-12 | ||||||||||||
Fair value of securities pledged, including accrued | ||||||||||||
interest receivable | $ | - | $ | 158,765 | $ | - | $ | - | $ | 158,765 | ||
Repurchase agreement liabilities associated with | ||||||||||||
these securities | $ | - | $ | 150,294 | $ | - | $ | - | $ | 150,294 | ||
Net weighted average borrowing rate | - | 0.49% | - | - | 0.49% | |||||||
As of September 30, 2013, the outstanding repurchase obligations of the consolidated VIE included in the table above was $301.7 million. | ||||||||||||
If, during the term of a repurchase agreement, a lender should file for bankruptcy, the Company might experience difficulty recovering its pledged assets, which could result in an unsecured claim against the lender for the difference between the amount loaned to the Company plus interest due to the counterparty and the fair value of the collateral pledged to such lender, including the accrued interest receivable, receivable for securities sold and cash posted by the Company as collateral. At September 30, 2013 and December 31, 2012, the Company had a maximum amount at risk (the difference between the amount loaned to the Company, including interest payable, and the fair value of securities pledged, including accrued interest on such securities and receivable for securities sold) of approximately $20.7 million and approximately $9.0 million, respectively. Summary information regarding amounts at risk with individual counterparties greater than 10% of equity at September 30, 2013 and December 31, 2012 is as follows: | ||||||||||||
(in thousands) | ||||||||||||
Weighted | ||||||||||||
Average | ||||||||||||
Amount | Maturity | |||||||||||
Repurchase Agreement Counterparties | at Risk | (in Days) | ||||||||||
30-Sep-13 | ||||||||||||
Citigroup Global Markets, Inc. | $ | 6,924 | 26 | |||||||||
31-Dec-12 | ||||||||||||
Citigroup Global Markets, Inc. | $ | 3,714 | 18 | |||||||||
South Street Securities, LLC | 1,802 | 7 | ||||||||||
Suntrust Robinson Humphrey, Inc. | 1,123 | 7 | ||||||||||
The PrinceRidge Group, LLC | 979 | 15 | ||||||||||
KGS - Alpha Capital Markets, L.P. | 843 | 21 | ||||||||||
Cantor Fitzgerald & Co. | 541 | 4 | ||||||||||
At September 30, 2013, Bimini Capital had a maximum amount at risk (the difference between the amount loaned to Bimini Capital, including interest payable, and the fair value of securities pledged, including accrued interest on such securities and cash posted by the Company as collateral) of approximately $2.4 million. Summary information regarding amounts at risk with individual counterparties greater than 10% of stockholders' equity attributable to Bimini Capital equity at September 30, 2013 is as follows: | ||||||||||||
(in thousands) | ||||||||||||
Weighted | ||||||||||||
Average | ||||||||||||
Amount | Maturity | |||||||||||
Repurchase Agreement Counterparties | at Risk | (in Days) | ||||||||||
30-Sep-13 | ||||||||||||
Suntrust Robinson Humphrey, Inc. | $ | 1,018 | 7 | |||||||||
The PrinceRidge Group, LLC | 950 | 21 |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Derivative Financial Instruments [Abstract] | ' | |||||||||||
Derivative Financial Instruments | ' | |||||||||||
NOTE 5. DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||
In connection with its interest rate risk management strategy, the Company economically hedges a portion of its interest rate risk by entering into derivative financial instrument contracts. The Company has not elected hedging treatment under GAAP, and as such all gains or losses on these instruments are reflected in earnings for all periods presented. | ||||||||||||
As of September 30, 2013, such instruments were comprised entirely of Eurodollar futures contracts. Eurodollar futures are cash settled futures contracts on an interest rate, with gains and losses credited and charged to the Company's account on a daily basis. A minimum balance, or “margin”, is required to be maintained in the account on a daily basis. The Company is exposed to the changes in value of the futures by the amount of margin held by the broker. The tables below present information related to the Company's Eurodollar futures positions at September 30, 2013 and December 31, 2012. | ||||||||||||
(in thousands) | ||||||||||||
Eurodollar Futures Positions (Consolidated) | ||||||||||||
As of September 30, 2013 | ||||||||||||
Repurchase Agreement Funding Hedges | Junior Subordinated Debt Funding Hedges | |||||||||||
Weighted | Average | Weighted | Average | |||||||||
Average | Contract | Average | Contract | |||||||||
LIBOR | Notional | Open | LIBOR | Notional | Open | |||||||
Expiration Year | Rate | Amount | Equity(1) | Rate | Amount | Equity(1) | ||||||
2013 | 0.28% | $ | 30,000 | $ | -124 | 0.28% | $ | 21,000 | $ | -99 | ||
2014 | 0.47% | 262,500 | -96 | 0.41% | 26,000 | -412 | ||||||
2015 | 0.89% | 275,000 | 95 | 0.89% | 26,000 | -155 | ||||||
2016 | 1.86% | 250,000 | 1,286 | 1.73% | 26,000 | 7 | ||||||
2017 | 2.83% | 250,000 | 1,794 | - | - | - | ||||||
2018 | 3.51% | 250,000 | 1,088 | - | - | - | ||||||
1.94% | $ | 4,043 | 0.90% | $ | -659 | |||||||
Cash posted as collateral, included in restricted cash | $ | 2,711 | ||||||||||
(in thousands) | ||||||||||||
Eurodollar Futures Positions (Consolidated) | ||||||||||||
As of December 31, 2012 | ||||||||||||
Repurchase Agreement Funding Hedges | Junior Subordinated Debt Funding Hedges | |||||||||||
Weighted | Average | Weighted | Average | |||||||||
Average | Contract | Average | Contract | |||||||||
LIBOR | Notional | Open | LIBOR | Notional | Open | |||||||
Expiration Year | Rate | Amount | Equity(1) | Rate | Amount | Equity(1) | ||||||
2013 | 0.34% | $ | 30,000 | $ | -375 | 0.34% | $ | 21,000 | $ | -341 | ||
2014 | - | - | - | 0.48% | 26,000 | -393 | ||||||
2015 | - | - | - | 0.74% | 26,000 | -192 | ||||||
2016 | - | - | - | 1.01% | 26,000 | -57 | ||||||
0.34% | $ | -375 | 0.57% | $ | -983 | |||||||
Cash posted as collateral, included in restricted cash | $ | 227 | ||||||||||
The table below presents information related solely to Bimini Capital's Eurodollar futures positions at September 30, 2013. | ||||||||||||
(in thousands) | ||||||||||||
Eurodollar Futures Positions (Parent-Only) | ||||||||||||
As of September 30, 2013 | ||||||||||||
Repurchase Agreement Funding Hedges | Junior Subordinated Debt Funding Hedges | |||||||||||
Weighted | Average | Weighted | Average | |||||||||
Average | Contract | Average | Contract | |||||||||
LIBOR | Notional | Open | LIBOR | Notional | Open | |||||||
Expiration Year | Rate | Amount | Equity(1) | Rate | Amount | Equity(1) | ||||||
2013 | 0.28% | $ | 30,000 | $ | -124 | 0.28% | $ | 21,000 | $ | -99 | ||
2014 | - | - | - | 0.41% | 26,000 | -412 | ||||||
2015 | - | - | - | 0.89% | 26,000 | -155 | ||||||
2016 | - | - | - | 1.73% | 26,000 | 7 | ||||||
0.28% | $ | -124 | 0.90% | $ | -659 | |||||||
Cash posted as collateral, included in restricted cash | $ | 130 | ||||||||||
Open equity represents the cumulative gains (losses) recorded on open futures positions. | ||||||||||||
The tables below present the effect of the Company's derivative financial instruments on the statements of operations for the nine and three months ended September 30, 2013 and 2012. | ||||||||||||
(in thousands) | ||||||||||||
Nine Months Ended September 30, | ||||||||||||
Consolidated | Parent-Only | |||||||||||
Eurodollar futures contracts (short positions) | 2013 | 2012 | 2013 | 2012 | ||||||||
Repurchase Agreement Hedges | $ | 4,077 | $ | -231 | $ | -19 | $ | -191 | ||||
Junior Subordinated Notes Hedges | 69 | -532 | 69 | -532 | ||||||||
$ | 4,146 | $ | -763 | $ | 50 | $ | -723 | |||||
(in thousands) | ||||||||||||
Three Months Ended September 30, | ||||||||||||
Consolidated | Parent-Only | |||||||||||
Eurodollar futures contracts (short positions) | 2013 | 2012 | 2013 | 2012 | ||||||||
Repurchase Agreement Hedges | $ | -2,283 | $ | -100 | $ | -11 | $ | -85 | ||||
Junior Subordinated Notes Hedges | -167 | -238 | -167 | -238 | ||||||||
$ | -2,450 | $ | -338 | $ | -178 | $ | -323 |
Trust_Preferred_Securities
Trust Preferred Securities | 9 Months Ended |
Sep. 30, 2013 | |
Trust Preferred Securities [Abstract] | ' |
Trust Preferred Securities | ' |
NOTE 6. TRUST PREFERRED SECURITIES | |
During 2005, Bimini Capital sponsored the formation of a statutory trust, known as Bimini Capital Trust II (“BCTII”) of which 100% of the common equity is owned by Bimini Capital. It was formed for the purpose of issuing trust preferred capital securities to third-party investors and investing the proceeds from the sale of such capital securities solely in junior subordinated debt securities of Bimini Capital. The debt securities held by BCTII are the sole assets of BCTII. | |
As of September 30, 2013 and December 31, 2012, the outstanding principal balance on the junior subordinated debt securities owed to BCTII was $26.8 million. The BCTII trust preferred securities and Bimini Capital's BCTII Junior Subordinated Notes have a rate of interest that floats at a spread of 3.50% over the prevailing three-month LIBOR rate. As of September 30, 2013, the interest rate was 3.75%. The BCTII trust preferred securities and Bimini Capital's BCTII Junior Subordinated Notes require quarterly interest distributions and are redeemable at Bimini Capital's option, in whole or in part and without penalty, beginning December 15, 2010. Bimini Capital's BCTII Junior Subordinated Notes are subordinate and junior in right of payment of all present and future senior indebtedness. | |
The trust is a VIE because the holders of the equity investment at risk do not have adequate decision making ability over the trust's activities. Since Bimini Capital's investment in the trust's common equity securities was financed directly by the trust as a result of its loan of the proceeds to Bimini Capital, that investment is not considered to be an equity investment at risk. Since Bimini Capital's common share investment in BCTII is not a variable interest, Bimini Capital is not the primary beneficiary of BCTII. Therefore, Bimini Capital has not consolidated the financial statements of BCTII into its financial statements. | |
The accompanying consolidated financial statements present Bimini Capital's BCTII Junior Subordinated Notes issued to the trust as a liability and Bimini Capital's investment in the common equity securities of BCTII as an asset (included in prepaid expenses and other assets, net). For financial statement purposes, Bimini Capital records payments of interest on the Junior Subordinated Notes issued to BCTII as interest expense. |
Capital_Stock
Capital Stock | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Capital Stock [Abstract] | ' | ||||||
Capital Stock | ' | ||||||
NOTE 7. CAPITAL STOCK | |||||||
At September 30, 2013 and December 31, 2012, Bimini Capital's capital stock is comprised of the following: | |||||||
(in thousands) | |||||||
30-Sep-13 | 31-Dec-12 | ||||||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; designated, 1,800,000 | |||||||
shares as Class A Redeemable and 2,000,000 shares as Class B Redeemable; no | |||||||
shares issued and outstanding as of September 30, 2013 and December 31, 2012 | $ | - | $ | - | |||
Class A Common Stock, $0.001 par value; 98,000,000 shares designated: 11,509,756 | |||||||
shares issued and outstanding as of September 30, 2013 and 10,616,912 shares | |||||||
issued and outstanding as of December 31, 2012 | 11,510 | 10,617 | |||||
Class B Common Stock, $0.001 par value; 1,000,000 shares designated, 31,938 shares | |||||||
issued and outstanding as of September 30, 2013 and December 31, 2012 | 32 | 32 | |||||
Class C Common Stock, $0.001 par value; 1,000,000 shares designated, 31,938 shares | |||||||
issued and outstanding as of September 30, 2013 and December 31, 2012 | 32 | 32 | |||||
Issuances of Common Stock | |||||||
The table below presents information related to the Company's Class A Common Stock issued to its independent directors for the payment of director fees and to employees pursuant to the terms of its stock incentive plan grants for the nine and three months ended September 30, 2013 and 2012. | |||||||
Nine Months Ended September 30, | Three Months Ended September 30, | ||||||
Shares Issued Related To: | 2013 | 2012 | 2013 | 2012 | |||
Directors' compensation | - | 242,567 | - | - | |||
Vesting incentive plan shares | 892,844 | - | 876,640 | - | |||
Total shares of Class A Common Stock issued | 892,844 | 242,567 | 876,640 | - | |||
There were no issuances of the Company's Class B Common Stock and Class C Common Stock during the nine and three months ended September 30, 2013 and 2012. |
Stock_Incentive_Plans
Stock Incentive Plans | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Employee Benefits And Share Based Compensation [Abstract] | ' | |||||||
Stock incentive Plans | ' | |||||||
NOTE 8. STOCK INCENTIVE PLANS | ||||||||
On December 18, 2003, Bimini Capital adopted the 2003 Long Term Incentive Compensation Plan (the “2003 Plan”) to provide Bimini Capital with the flexibility to use stock options and other awards as part of an overall compensation package to provide a means of performance-based compensation to attract and retain qualified personnel. The 2003 Plan was amended and restated in March 2004. Key employees, directors and consultants are eligible to be granted stock options, restricted stock, phantom shares, dividend equivalent rights and other stock-based awards under the 2003 Plan. Subject to adjustment upon certain corporate transactions or events, a maximum of 1,448,050 shares of the Class A Common Stock (but not more than 10% of the Class A Common Stock outstanding on the date of grant) may be subject to stock options, shares of restricted stock, phantom shares and dividend equivalent rights under the 2003 Plan. | ||||||||
On August 12, 2011, Bimini Capital's shareholders approved the 2011 Long Term Compensation Plan (the “2011 Plan”) to assist the Company in recruiting and retaining employees, directors and other service providers by enabling them to participate in the success of Bimini Capital and to associate their interest with those of the Company and its stockholders. After the approval of the 2011 Plan, the Board of Directors agreed that it would no longer issue awards under the 2003 Plan. The plan is intended to permit the grant of stock options, stock appreciation rights (“SARs”), stock awards, performance units and other equity-based and incentive awards. The maximum aggregate number of shares of Common Stock that may be issued under the 2011 Plan pursuant to the exercise of options and SARs, the grant of stock awards or other equity-based awards and the settlement of incentive awards and performance units is equal to 4,000,000 shares. | ||||||||
In October 2012, Orchid adopted the 2012 Equity Incentive Plan (the “2012 Plan”) to recruit and retain employees, directors and other service providers, including employees of Bimini Capital and other affiliates. The 2012 Plan provides for the award of stock options, stock appreciation rights, stock award, performance units, other equity-based awards (and dividend equivalents with respect to awards of performance units and other equity-based awards) and incentive awards. The 2012 Plan is administered by the Compensation Committee of Orchid's Board of Directors except that Orchid's full Board of Directors will administer awards made to directors who are not employees of Orchid or its affiliates. The 2012 Plan provides for awards of up to an aggregate of 10% of the issued and outstanding shares of Orchid's common stock (on a fully diluted basis) at the time of the awards, subject to a maximum aggregate 4,000,000 shares of Orchid common stock that may be issued under the Incentive Plan. To date, no awards have been made under the Incentive Plan. | ||||||||
Phantom share awards represent a right to receive a share of Bimini Capital's Class A Common Stock. These awards do not have an exercise price and are valued at the fair value of Bimini Capital's Class A Common Stock at the date of the grant. The grant date value is amortized to compensation expense on a straight-line basis over the vesting period of the respective award. The phantom shares vest, based on the employees' continuing employment, following a schedule as provided in the individual grant agreements, which was originally for periods through March 15, 2015. Compensation expense recognized for phantom shares was approximately $279,000 and $238,000 for the nine and three months ended September 30, 2013, respectively and $63,000 and $21,000 for the nine and three months ended September 30, 2012, respectively. Dividends paid on unsettled awards are charged to stockholders' equity when declared. | ||||||||
A summary of phantom share activity during the nine months ended September 30, 2013 and 2012 is presented below: | ||||||||
Nine Months Ended September 30, | ||||||||
2013 | 2012 | |||||||
Weighted- | Weighted- | |||||||
Average | Average | |||||||
Grant-Date | Grant-Date | |||||||
Shares | Fair Value | Shares | Fair Value | |||||
Nonvested, at January 1 | 367,844 | $ | 1.11 | 367,844 | $ | 1.11 | ||
Granted during the period | 525,000 | 0.23 | - | - | ||||
Vested during the period | -892,844 | 0.6 | - | - | ||||
Nonvested, at September 30 | - | $ | - | 367,844 | $ | 1.11 | ||
In August 2013, the Compensation Committee of the Board of Directors of Bimini Capital approved certain performance bonuses for members of management. These bonuses were awarded primarily in recognition of management's efforts in completing the Orchid initial public offering. The bonuses, which were paid on August 13, 2013 (the “Bonus Date”), consisted of cash and fully vested shares of the Company's common stock issued under the 2011 Plan. In particular, executive officers and senior employees received bonuses totaling approximately $167,000, consisting of 525,000 shares of the Company's common stock with an approximate value of $122,000, and cash of approximately $45,000. For purposes of these bonuses, shares of the Company's common stock were valued based on the closing price of the Company's common stock on the Bonus Date. | ||||||||
The Compensation Committee also approved the acceleration of the vesting of all outstanding, unvested equity awards held by management, as well as cash bonuses equal to 35% of the taxable income created by such vesting. The accelerated vesting date was the Bonus Date. Expenses associated with each of the transactions described above were recorded in the three month period ended September 30, 2013. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Commitments And Contingencies | ' |
NOTE 9. COMMITMENTS AND CONTINGENCIES | |
Outstanding Litigation | |
The Company is involved in various lawsuits and claims, both actual and potential, including some that it has asserted against others, in which monetary and other damages are sought. These lawsuits and claims relate primarily to contractual disputes arising out of the ordinary course of the Company's business. The outcome of such lawsuits and claims is inherently unpredictable. However, management believes that, in the aggregate, the outcome of all lawsuits and claims involving the Company will not have a material effect on the Company's consolidated financial position or liquidity; however, any such outcome may be material to the results of operations of any particular period in which costs, if any, are recognized. | |
A complaint by a note-holder in Preferred Term Securities XX (“PreTSL XX”) was filed on July 16, 2010 in the Supreme Court of the State of New York, New York County, against Bimini Capital, the Bank of New York Mellon (“BNYM”), PreTSL XX, Ltd. and Hexagon Securities, LLC (“Hexagon”). The complaint, filed by Hildene Capital Management, LLC and Hildene Opportunities Fund, Ltd. (“Hildene”), alleges that Hildene suffered losses as a result of Bimini Capital's repurchase of all outstanding fixed/floating rate capital securities of Bimini Capital Trust II for less than par value from PreTSL XX in October 2009. Hildene has alleged claims against BNYM for breach of the Indenture, breach of fiduciary duties and breach of covenant of good faith and fair dealing, and claims against Bimini Capital for tortious interference with contract, aiding and abetting breach of fiduciary duty, unjust enrichment and “rescission/illegality”. Plaintiff also alleges derivative claims brought in the name of Nominal Defendant BNYM. (On May 2, 2011, Hexagon and Nominal Defendant PreTSL XX were voluntarily dismissed without prejudice by Hildene.) On May 23, 2011, Bimini Capital and BNYM moved to dismiss Hildene's derivative claims, and Bimini also moved to dismiss Hildene's claim for “rescission/illegality.” | |
On October 19, 2011, PreTSL XX, Ltd. moved to intervene as an additional plaintiff in the action, and Bimini Capital and BNYM opposed that motion. On August 23, 2012, the court issued a Decision and Order granting PreTSL XX, Ltd.'s motion to intervene. Bimini Capital and BNYM filed appeals in the Appellate Division, First Department, and on April 2, 2013, the Appellate Division affirmed the trial court's decision. On May 3, 2013, Hildene voluntarily dismissed its purported derivative claims brought in the name of BNYM. Bimini Capital denies that the repurchase was improper and intends to continue to defend the suit vigorously. | |
On March 2, 2011, MortCo and Opteum Mortgage Acceptance Corporation (“Opteum Acceptance”) (referred to together herein as “MortCo”) received a letter dated March 1, 2011 from Massachusetts Mutual Life Insurance Company (“Mass Mutual”) enclosing a draft complaint against MortCo. In summary, Mass Mutual alleges that it purchased residential mortgage-backed securities offered by MortCo in August 2005 and the first quarter of 2006 and that MortCo made false representations and warranties in connection with the sale of the securities in violation of Mass Gen. Laws Ch. 110A § 410(a)(2) (the “Massachusetts Blue Sky Law”). In its letter, Mass Mutual claims it is entitled to damages in excess of $25 million. However, no monetary demand is contained in the draft complaint and the actual damages Mass Mutual claims to have incurred is uncertain. | |
Mass Mutual has not filed the complaint or initiated litigation. Pursuant to its request, on March 14, 2011 Mass Mutual and MortCo entered into a Tolling Agreement through June 1, 2011 so that Mass Mutual could address its allegations against Opteum Acceptance without incurring litigation costs. Since then, the parties extended the Tolling Agreement on two occasions so that the Tolling Agreement now terminates on December 2, 2013. Mass Mutual has not contacted Opteum Acceptance to discuss its allegations. | |
MortCo denies it or Opteum Acceptance, individually or collectively, made false representations and warranties in connection with the sale of securities to Mass Mutual. Mass Mutual has taken no action to prosecute its claim against Opteum Acceptance, and the range of loss or potential loss, if any, cannot reasonably be estimated. Should Mass Mutual initiate litigation, MortCo will defend such litigation vigorously. | |
Loans Sold to Investors. | |
Generally, MortCo was not exposed to significant credit risk on its loans sold to investors. In the normal course of business, MortCo provided certain representations and warranties during the sale of mortgage loans which included an obligation, under certain circumstances, to repurchase loans which were subsequently unable to be sold through the normal investor channels. MortCo had previously recorded a liability of approximately $4.7 million, which was included in “accounts payable, accrued expenses and other”, for the estimated fair value of this contingent obligation. During the nine months ended September 30, 2013, the Company evaluated this position and determined that the statute of limitations had expired for creditors to pursue claims related to this obligation. As such, this liability was reversed and included in “other income” in the accompanying statements of operations. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
NOTE 10. INCOME TAXES | |
REIT Activities | |
Generally, REITs are not subject to federal income tax on REIT taxable income distributed to its shareholders. REIT taxable income or loss, as generated by qualifying REIT activities, is computed in accordance with the Internal Revenue Code, which is different from the financial statement net income or loss as computed in accordance with GAAP. Depending on the number and size of the various items or transactions being accounted for differently, the differences between the Company's REIT taxable income or loss and its GAAP financial statement net income or loss can be substantial and each item can affect several years | |
As of December 31, 2012, Bimini Capital had a REIT tax net operating loss carryforward of approximately $13.8 million that is immediately available to offset future REIT taxable income. The REIT tax net operating loss carryforwards will expire in years 2028 through 2032. | |
Taxable REIT Subsidiaries | |
As taxable REIT subsidiaries (“TRS”), Bimini Advisors and MortCo are tax paying entities for income tax purposes and are taxed separately from Bimini Capital and from each other. Therefore, Bimini Advisors and MortCo each separately report an income tax provision or benefit based on their own taxable activities. For the nine and three months ended September 30, 2013 and 2012, MortCo had no taxable income primarily due to the utilization of NOL carryforwards; Bimini Advisors has losses from its inception for income tax purposes. | |
The TRS income tax provisions for the nine and three months ended September 30, 2013 and 2012 differ from the amount determined by applying the statutory Federal rate of 35% to the pre-tax income or loss due primarily to the recording of, and adjustments to, the deferred tax asset valuation allowance. During the nine and three months ended September 30, 2013 and 2012, a portion of the deferred tax asset valuation allowance was reversed, as the utilization of this portion of the deferred tax asset was deemed more likely than not, due to the utilization of NOLs to offset estimated taxable income | |
As of September 30, 2013, MortCo has estimated federal NOL carryforwards of approximately $267.5 million, and estimated available Florida NOLs of approximately $40.0 million, both of which begin to expire in 2025, and are fully available to offset future federal and Florida taxable income, respectively. All other MortCo state NOLs have been abandoned. Bimini Advisors has estimated federal and Florida NOL carryforwards of approximately $0.5 million which begin to expire in 2031 and are fully available to offset future federal and Florida taxable income. | |
The net deferred tax assets and offsetting valuation allowances for MortCo at September 30, 2013 are both approximately $96.3 million. The net deferred tax assets and offsetting valuation allowances for Bimini Advisors at September 30, 2013 are both approximately $0.2 million. The ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income from the operations of each of the respective entities. At September 30, 2013 and December 31, 2012, management believed that it was more likely than not that neither TRS would realize the full benefits of all of the federal and Florida tax NOL carryforwards (which are the primary deferred tax assets); therefore, an allowance for the full amount of the deferred tax assets has been recorded in both periods. Management considers the projected future taxable income or losses, and tax planning strategies in making this assessment. | |
MortCo holds residual interests in various real estate mortgage investment conduits (“REMICs”), which were issued in 2004, 2005 and 2006, some of which generate excess inclusion income (“EII”), a type of taxable income pursuant to specific provisions of the Code. Through 2007, MortCo based its tax position on advice received from tax consultants regarding the taxability of EII. During 2008, MortCo re-evaluated its EII tax position, and concluded that it was no longer more likely than not that the pre-2008 tax position would be fully sustained upon examination. Based on this conclusion, MortCo recorded a liability of approximately $2.1 million for taxes, interest and penalties related to this uncertain tax position during 2008 | |
During 2010 (as part of the filing of its 2009 tax returns), MortCo reached a tax filing position related to this issue, reported EII taxable income of approximately $2.1 million, paid $0.8 million of income tax, interest and penalties, and included a notice of inconsistent treatment in its tax returns. Because of the continued uncertainty surrounding the taxation of EII, MortCo continued to account for the pre-2008 tax position as being more likely than not that the tax position would not be fully sustained upon examination. On September 15, 2013, the statute of limitations for the IRS to challenge MortCo's pre-2008 tax position expired. As such, the remaining balance of this liability was reversed during the three months ended September 30, 2013, which results in a tax benefit of $1.3 million. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||
Earnings Per Share | ' | ||||||||||
NOTE 11. EARNINGS PER SHARE | |||||||||||
Shares of Class B Common Stock, participating and convertible into Class A Common Stock, are entitled to receive dividends in an amount equal to the dividends declared on each share of Class A Common Stock if, and when, authorized and declared by the Board of Directors. Following the provisions of FASB ASC 260, the Class B Common Stock is included in the computation of basic EPS using the two-class method, and consequently is presented separately from Class A Common Stock. Shares of Class B Common Stock are not included in the computation of diluted Class A EPS as the conditions for conversion to Class A Common Stock were not met at September 30, 2013 and 2012. | |||||||||||
Shares of Class C Common Stock are not included in the basic EPS computation as these shares do not have participation rights. Shares of Class C Common Stock are not included in the computation of diluted Class A EPS as the conditions for conversion to Class A Common Stock were not met at September 30, 2013 and 2012. | |||||||||||
The Company has dividend eligible stock incentive plan shares that were outstanding during the nine and three months ended September 30, 2013 and 2012. The basic and diluted per share computations include these unvested incentive plan shares if there is income available to Class A Common Stock, as they have dividend participation rights. The stock incentive plan shares have no contractual obligation to share in losses. Since there is no such obligation, the incentive plan shares are not included in the basic and diluted EPS computations when no income is available to Class A Common Stock even though they are considered participating securities. | |||||||||||
The table below reconciles the numerators and denominators of the basic and diluted EPS. | |||||||||||
(in thousands, except per-share information) | |||||||||||
Nine Months Ended September 30, | Three Months Ended September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||
Basic and diluted EPS per Class A common share: | |||||||||||
(Loss) income available to Class A common shares: | |||||||||||
Basic and diluted | $ | -723 | $ | -114 | $ | 1,840 | $ | -759 | |||
Weighted average common shares: | |||||||||||
Class A common shares outstanding at the balance sheet date | 11,510 | 10,329 | 11,510 | 10,329 | |||||||
Effect of weighting | -727 | -97 | -251 | - | |||||||
Weighted average shares-basic and diluted | 10,783 | 10,232 | 11,259 | 10,329 | |||||||
(Loss) income per Class A common share: | |||||||||||
Basic and diluted | $ | -0.07 | $ | -0.01 | $ | 0.16 | $ | -0.07 | |||
(in thousands, except per-share information) | |||||||||||
Nine Months Ended September 30, | Three Months Ended September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||
Basic and diluted EPS per Class B common share: | |||||||||||
(Loss) income available to Class B common shares: | |||||||||||
Basic and diluted | $ | -2 | $ | - | $ | 5 | $ | -2 | |||
Weighted average common shares: | |||||||||||
Class B common shares outstanding at the balance sheet date | 32 | 32 | 32 | 32 | |||||||
Effect of weighting | - | - | - | - | |||||||
Weighted average shares-basic and diluted | 32 | 32 | 32 | 32 | |||||||
(Loss) income per Class B common share: | |||||||||||
Basic and diluted | $ | -0.07 | $ | -0.01 | $ | 0.16 | $ | -0.07 | |||
Fair_Value
Fair Value | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||
Fair Value | ' | ||||||||
NOTE 12. FAIR VALUE | |||||||||
Authoritative accounting literature establishes a framework for using fair value to measure assets and liabilities and defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) as opposed to the price that would be paid to acquire the asset or received to assume the liability (an entry price). A fair value measure should reflect the assumptions that market participants would use in pricing the asset or liability, including the assumptions about the risk inherent in a particular valuation technique, the effect of a restriction on the sale or use of an asset and the risk of non-performance. Required disclosures include stratification of balance sheet amounts measured at fair value based on inputs the Company uses to derive fair value measurements. These stratifications are: | |||||||||
Level 1 valuations, where the valuation is based on quoted market prices for identical assets or liabilities traded in active markets (which include exchanges and over-the-counter markets with sufficient volume), | |||||||||
Level 2 valuations, where the valuation is based on quoted market prices for similar instruments traded in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market, and | |||||||||
Level 3 valuations, where the valuation is generated from model-based techniques that use significant assumptions not observable in the market, but observable based on Company-specific data. These unobservable assumptions reflect the Company's own estimates for assumptions that market participants would use in pricing the asset or liability. Valuation techniques typically include option pricing models, discounted cash flow models and similar techniques, but may also include the use of market prices of assets or liabilities that are not directly comparable to the subject asset or liability. | |||||||||
The Company's MBS are valued using Level 2 valuations, and such valuations currently are determined by the Company based on the average of third-party broker quotes and/or by independent pricing sources when available. Because the price estimates may vary, the Company must make certain judgments and assumptions about the appropriate price to use to calculate the fair values. Alternatively, the Company could opt to have the value of all of our MBS positions determined by either an independent third-party or do so internally. | |||||||||
Mortgage-backed securities, retained interests and Eurodollar futures contracts were recorded at fair value on a recurring basis during 2013 and 2012. When determining fair value measurements, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset. When possible, the Company looks to active and observable markets to price identical assets. When identical assets are not traded in active markets, the Company looks to market observable data for similar assets. Fair value measurements for the retained interests are generated by a model that requires management to make a significant number of assumptions. | |||||||||
The following table presents financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012: | |||||||||
(in thousands) | |||||||||
Quoted Prices | |||||||||
in Active | Significant | ||||||||
Markets for | Other | Significant | |||||||
Identical | Observable | Unobservable | |||||||
Fair Value | Assets | Inputs | Inputs | ||||||
Measurements | (Level 1) | (Level 2) | (Level 3) | ||||||
30-Sep-13 | |||||||||
Mortgage-backed securities | $ | 371,341 | $ | - | $ | 371,341 | $ | - | |
Eurodollar futures contracts | 2,711 | 2,711 | - | - | |||||
Retained interests | 3,399 | - | - | 3,399 | |||||
31-Dec-12 | |||||||||
Mortgage-backed securities | $ | 168,155 | $ | - | $ | 168,155 | $ | - | |
Eurodollar futures contracts | 227 | 227 | - | - | |||||
Retained interests | 3,336 | - | - | 3,336 | |||||
The following table illustrates a roll forward for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended September 30, 2013 and 2012: | |||||||||
(in thousands) | |||||||||
Retained Interests | Mortgage Loans Held for Sale | ||||||||
2013 | 2012 | 2012 | |||||||
Balances, January 1 | $ | 3,336 | $ | 3,495 | $ | 40 | |||
Gain (loss) included in earnings | 2,536 | 4,205 | -17 | ||||||
Collections | -2,473 | -3,385 | -23 | ||||||
Balances, September 30 | $ | 3,399 | $ | 4,315 | $ | - | |||
During the nine months ended September 30, 2013 and 2012, there were no transfers of financial assets or liabilities between levels 1, 2 or 3. | |||||||||
Our retained interests are valued based on a discounted cash flow approach. These values are sensitive to changes in unobservable inputs, including: estimated prepayment speeds, default rates and loss severity, weighted-average life, and discount rates. Significant increases or decreases in any of these inputs may result in significantly different fair value measurements. | |||||||||
The following table summarizes the significant quantitative information about our level 3 fair value measurements as of September 30, 2013. | |||||||||
Retained interest fair value (in thousands) | $ | 3,399 | |||||||
Prepayment Assumption | CPR Range (Weighted Average) | ||||||||
Constant Prepayment Rate | 10% (10%) | ||||||||
Default Assumptions | Probability of Default | Severity Range (Weighted Average) | Range Of Loss Timing | ||||||
Real Estate Owned | 100% | 26.03% - 66.25% (28.7%) | Next 10 Months | ||||||
Loans in Foreclosure | 100% | 26.03% - 66.25% (28.7%) | Month 4 - 13 | ||||||
Loans 90 Day Delinquent | 100% | 45% | Month 11-28 | ||||||
Loans 60 Day Delinquent | 85% | 45% | Month 11-28 | ||||||
Loans 30 Day Delinquent | 75% | 45% | Month 11-28 | ||||||
Current Loans | 3.18% - 4.79% | 45% | Month 29 and Beyond | ||||||
Cash Flow Recognition | Valuation Technique | Remaining Life Range (Weighted Average) | Discount Rate Range (Weighted Average) | ||||||
Nominal Cash Flows | Discounted Cash Flow | 0.5 -11.3 years (2.5) | 27.5% (27.5%) | ||||||
Discounted Cash Flows | Discounted Cash Flow | 0.5 -9.8 years (0.8) | 27.5% (27.5%) |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions Disclosure [Abstract] | ' |
Related Party Transactions | ' |
NOTE 13. RELATED PARTY TRANSACTIONS | |
Frank E. Jaumot is a shareholder in an accounting firm from which the Company receives accounting and tax services. Mr. Jaumot is both a director and a shareholder of Bimini Capital and a shareholder of Orchid. Professional fees incurred with this firm were $82,000 and $102,000 for the nine months ended September 30, 2013 and 2012, respectively. | |
Management Agreement | |
Orchid entered into a management agreement with Bimini Capital, which provided for an initial term through December 31, 2011 with automatic one-year extension options. The agreement was extended under the option to December 31, 2013, but was terminated at the completion of Orchid's IPO. At the completion of the IPO, Orchid entered into a management agreement with Bimini Advisors, LLC which provides for an initial term through February 20, 2016 with automatic one-year extensions and is subject to certain termination rights. Under the terms of the management agreement, Bimini Advisors will be responsible for administering the business activities and day-to-day operations of Orchid. Bimini Advisors will receive a monthly management fee in the amount of: | |
One-twelfth of 1.5% of the first $250 million of Orchid's equity, as defined in the management agreement, | |
One-twelfth of 1.25% of Orchid's equity that is greater than $250 million and less than or equal to $500 million, and | |
One-twelfth of 1.00% Orchid's equity that is greater than $500 million. | |
Should Orchid terminate the management agreement without cause, it shall pay to Bimini Advisors a termination fee equal to three times the average annual management fee, as defined in the management agreement, before or on the last day of the initial term or automatic renewal term. Orchid is obligated to reimburse Bimini Advisors for any direct expenses incurred on its behalf. In addition, once Orchid's equity, as defined, equals $100 million, Bimini Advisors will begin allocating to Orchid it's pro rata portion of certain overhead costs as defined in the management agreement. |
Variable_Interest_Entities
Variable Interest Entities | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Variable Interest Entity Noncontrolling Interest [Abstract] | ' | ||||||
Consolidated Variable Interest Entity And Noncontrolling Interest | ' | ||||||
Note 14. CONSOLIDATED Variable Interest EntitY AND NONCONTROLLING INTERESTs | |||||||
As discussed in Note 1, Orchid completed its IPO on February 20, 2013. Bimini Capital owned 100% of the outstanding common stock of Orchid prior to the IPO, and approximately 29.38% after the IPO. Orchid operates as a mortgage REIT and was formed in order to increase Bimini Capital's assets under management to generate additional revenues to cover operating costs. Orchid entered into a management agreement with Bimini Advisors under which Bimini Advisors will be responsible for administering the business activities and day-to-day operations of Orchid. Bimini Advisors receives a monthly management fee for these services. Bimini Capital and Bimini Advisors acted as sponsors of the Orchid IPO and paid approximately $3.0 million of IPO related expenses during the nine months ended September 30, 2013. The Company did not provide any further financial or other support to Orchid. | |||||||
The table below presents the effects of the above on the changes in equity attributable to Bimini Capital stockholders during the nine months ended September 30, 2013. | |||||||
(in thousands) | |||||||
Net loss attributable to Bimini Capital | $ | -725 | |||||
Transfers from the noncontrolling interests | |||||||
Increase in Bimini Capital's paid-in capital for sale of 2,360,000 common shares of Orchid | 278 | ||||||
Change from net loss attributable to Bimini Capital and transfers from noncontrolling interest | $ | -447 | |||||
The noncontrolling interests reported in the Company's Consolidated Financial Statements represent the portion of equity ownership in Orchid held by stockholders other than Bimini Capital. Noncontrolling interest is presented in the equity section of the consolidated balance sheet, separate from stockholders' equity attributed to Bimini Capital. Net income of Orchid is allocated between the noncontrolling interests and to Bimini Capital in proportion to their relative ownership interests in Orchid. | |||||||
The following is a roll forward of the noncontrolling interest during the nine months ended September 30, 2013. | |||||||
(in thousands) | |||||||
Balance, January 1, 2013 | $ | - | |||||
Issuance of common shares of Orchid Island Capital, Inc. | 35,122 | ||||||
Net income attributed to noncontrolling interest | -1,235 | ||||||
Cash dividend paid to noncontrolling interest | -2,231 | ||||||
Balance, September 30, 2013 | $ | 31,656 | |||||
A VIE is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of a controlling financial interest. A VIE is consolidated by its primary beneficiary. The primary beneficiary has both the power to direct the activities that most significantly impact the entity's economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. | |||||||
Management has concluded that, after the close of its IPO, Orchid is a VIE because Orchid's equity holders lack the ability through voting rights to make decisions about its activities that have a significant effect on its success. Management has also concluded that Bimini Capital is the primary beneficiary of Orchid because, under the terms of the management agreement, Bimini Capital has the power to direct the activities of Orchid that most significantly impact its economic performance including asset selection, asset and liability management and investment portfolio risk management. As a result, subsequent to Orchid's IPO and through September 30, 2013, the Company continued to consolidate Orchid in its Consolidated Financial Statements. This conclusion will be re-evaluated during subsequent reporting periods as the relationship between Bimini Capital and Orchid changes. | |||||||
The following table presents the assets and liabilities of Orchid that are reflected on our consolidated balance sheets at September 30, 2013 (excluding intercompany balances). | |||||||
(in thousands) | |||||||
ASSETS: | |||||||
Mortgage-backed securities, at fair value | |||||||
Pledged to counterparties | $ | 277,982 | |||||
Unpledged | 53,805 | ||||||
Total mortgage-backed securities | 331,787 | ||||||
Cash and cash equivalents | 7,901 | ||||||
Restricted cash | 2,581 | ||||||
Accrued interest receivable | 1,388 | ||||||
Receivable for securities sold | 41,150 | ||||||
Prepaid expenses and other assets | 673 | ||||||
Total Assets | $ | 385,480 | |||||
LIABILITIES: | |||||||
Repurchase agreements | $ | 301,657 | |||||
Liability for unsettled securities purchased | 38,720 | ||||||
Accrued interest payable | 78 | ||||||
Accounts payable, accrued expenses and other | 121 | ||||||
Total Liabilities | $ | 340,576 | |||||
The following table summarizes the operating results of Orchid (excluding intercompany transactions, including approximately $454,000 of management fees charged to Orchid) for the period beginning February 20, 2013 (the date of its IPO) through September 30, 2013 which are reflected in our consolidated statement of operations for the nine and three months ended September 30, 2013. | |||||||
Nine Months Ended | Three Months Ended | ||||||
(in thousands) | 30-Sep-13 | 30-Sep-13 | |||||
Interest income | $ | 6,011 | $ | 2,551 | |||
Interest expense | -753 | -294 | |||||
Net interest income | 5,258 | 2,257 | |||||
Unrealized (losses) gains on mortgage-backed securities | -8,532 | 86 | |||||
Realized losses on mortgage-backed securities | -1,491 | -667 | |||||
Gains (losses) on Eurodollar futures | 4,096 | -2,272 | |||||
Net portfolio deficiency | -669 | -596 | |||||
Expenses: | |||||||
Directors' fees and liability insurance | 207 | 83 | |||||
Audit, legal and other professional fees | 223 | 71 | |||||
Direct REIT operating expenses | 111 | 37 | |||||
Other administrative | 84 | 31 | |||||
Total expenses | 625 | 222 | |||||
Net loss | $ | -1,294 | $ | -818 | |||
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Consolidation | ' |
Consolidation | |
The accompanying consolidated financial statements include the accounts of Bimini Capital, Orchid, Bimini Advisors and MortCo, as well as the wholly-owned subsidiaries of MortCo. All inter-company accounts and transactions have been eliminated from the consolidated financial statements. | |
ASC Topic 810, Consolidation (“ASC 810”), requires the consolidation of a variable interest entity ("VIE") by an enterprise if it is deemed the primary beneficiary of the VIE. Further, ASC 810 requires a qualitative assessment to determine the primary beneficiary of a VIE and ongoing assessments of whether an enterprise is the primary beneficiary of a VIE as well as additional disclosures for entities that have variable interests in VIEs. | |
At the time of Orchid's IPO and as of September 30, 2013, management has concluded Orchid is a VIE because Orchid's equity holders lack the ability through voting rights to make decisions about its activities that have a significant effect on the success of Orchid. Management has also concluded that Bimini Capital is the primary beneficiary of Orchid because, under the management agreement between Bimini Advisors and Orchid, Bimini Capital has the power to direct the activities of Orchid that most significantly impact its economic performance. As a result, subsequent to Orchid's IPO and through September 30, 2013, the Company has continued to consolidate Orchid in its Consolidated Financial Statements. While the results of operations of Orchid are included in net income (loss) in the Company's Consolidated Financial Statements, net income (loss) attributable to common stockholders does not include the portion attributable to noncontrolling interests. Additionally, noncontrolling interests in Orchid are recorded in our Consolidated Balance Sheet and our Consolidated Statement of Equity within the equity section but separate from the stockholders' equity. | |
Assets recognized as a result of consolidating Orchid do not represent additional assets that could be used to satisfy claims against Bimini Capital's assets. Conversely, liabilities recognized as a result of consolidating Orchid do not represent additional claims on Bimini Capital's assets; rather, they represent claims against the assets of Orchid. Creditors and stockholders of Orchid have no recourse to the assets of Bimini Capital. | |
As further described in Note 6, Bimini Capital has a common share investment in a trust used in connection with the issuance of Bimini Capital's junior subordinated notes. Pursuant to ASC 810, Bimini Capital's common share investment in the trust has not been consolidated in the financial statements of Bimini Capital, and accordingly, this investment has been accounted for on the equity method. | |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying consolidated financial statements are prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States (“GAAP”). In the opinion of management, all adjustments considered necessary for a fair presentation of the Company's consolidated financial position, results of operations and cash flows have been included and are of a normal and recurring nature. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates affecting the accompanying financial statements include the fair values of MBS, Eurodollar futures contracts, retained interests and asset valuation allowances. | |
Statement of Comprehensive Income | ' |
Statement of Comprehensive Income (Loss) | |
In accordance with FASB ASC Topic 220, Comprehensive Income, a statement of comprehensive income has not been included as the Company has no items of other comprehensive income. Comprehensive (loss) income is the same as net (loss) income for all periods presented. | |
Cash and Cash Equivalents and Restricted Cash | ' |
Cash and Cash Equivalents and Restricted Cash | |
Cash and cash equivalents include cash on deposit with financial institutions and highly liquid investments with original maturities of three months or less. Restricted cash, of approximately $2,711,000 and approximately $227,000 at September 30, 2013 and December 31, 2012, respectively, represents cash held by a broker as margin on Eurodollar futures contracts. Restricted cash, totaling $614,000 at December 31, 2012, represents cash held on deposit as collateral with repurchase agreement counterparties, which may be used to make principal and interest payments on the related repurchase agreements. | |
The Company maintains cash balances at three banks, and, at times, balances may exceed federally insured limits. The Company has not experienced any losses related to these balances. All non-interest bearing cash balances were fully insured at December 31, 2012 due to a temporary federal program in effect from December 31, 2010 through December 31, 2012. Under the program, there was no limit to the amount of insurance for eligible accounts. Beginning January 1, 2013, insurance reverted to $250,000 per depositor at each financial institution. At September 30, 2013, the Company's cash deposits exceeded federally insured limits by approximately $9.1 million. Restricted cash balances are uninsured, but are held in separate customer accounts that are segregated from the general funds of the counterparty. The Company believes that it is not exposed to any significant credit risk on cash and cash equivalents or restricted cash balances. | |
Mortgage-Backed Securities | ' |
Mortgage-Backed Securities | |
The Company invests primarily in mortgage pass-through (“PT”) certificates, collateralized mortgage obligations, and interest only (“IO”) securities and inverse interest only (“IIO”) securities representing interest in or obligations backed by pools of mortgage-backed loans (collectively, “MBS”). These investments meet the requirements to be classified as available for sale under ASC 320-10-25, Debt and Equity Securities (which requires the securities to be carried at fair value on the balance sheet with changes in fair value charged to other comprehensive income, a component of stockholders' equity). However, the Company has elected to account for its investment in MBS under the fair value option. Electing the fair value option allows the Company to record changes in fair value in the statement of operations, which, in management's view, more appropriately reflects the results of our operations for a particular reporting period and is consistent with the underlying economics and how the portfolio is managed. | |
The Company records MBS transactions on the trade date. Security purchases that have not settled as of the balance sheet date are included in the MBS balance with an offsetting liability recorded, whereas securities sold that have not settled as of the balance sheet date are removed from the MBS balance with an offsetting receivable recorded. | |
The fair value of the Company's investment in MBS is governed by FASB ASC Topic 820, Fair Value Measurement. The definition of fair value in FASB ASC Topic 820 focuses on the price that would be received to sell the asset or paid to transfer the liability in an orderly transaction between market participants at the measurement date. The fair value measurement assumes that the transaction to sell the asset or transfer the liability either occurs in the principal market for the asset or liability, or in the absence of a principal market, occurs in the most advantageous market for the asset or liability. Estimated fair values for MBS are based on the average of third-party broker quotes received and/or independent pricing sources when available. | |
Income on PT MBS is based on the stated interest rate of the security. Premiums or discounts present at the date of purchase are not amortized. For IO securities, the income is accrued based on the carrying value and the effective yield. The difference between income accrued and the interest received on the security is characterized as a return of investment and serves to reduce the asset's carrying value. At each reporting date, the effective yield is adjusted prospectively from the reporting period based on the new estimate of prepayments and the contractual terms of the security. For IIO securities, effective yield and income recognition calculations also take into account the index value applicable to the security. Changes in fair value of MBS during each reporting period are recorded in earnings and reported as unrealized gains or losses on mortgage-backed securities in the accompanying consolidated statements of operations. | |
Retained Interests | ' |
Retained Interests in Securitizations | |
From 2005 to 2007, MortCo participated in securitization transactions as part of its mortgage origination business. Retained interests in the securitization transactions were initially recorded at their fair value when issued by MortCo. Subsequent adjustments to fair value are reflected in earnings. Quoted market prices for these assets are generally not available, so the Company estimates fair value based on the present value of expected future cash flows using management's best estimates of key assumptions, which include expected credit losses, prepayment speeds, weighted-average life, and discount rates commensurate with the inherent risks of the asset. | |
Derivative Financial Instruments | ' |
Derivative Financial Instruments | |
The Company has entered into derivative financial instruments to manage interest rate risk, facilitate asset/liability strategies, and manage other exposures, and it may continue to do so in the future. The Company has elected to not treat any of its derivative financial instruments as hedges. FASB ASC Topic 815, Derivatives and Hedging, requires that all derivative investments be carried at fair value. Changes in fair value are recorded in earnings for each period. | |
Financial Instruments | ' |
Financial Instruments | |
FASB ASC Topic 825, Financial Instruments, requires disclosure of the fair value of financial instruments for which it is practicable to estimate that value, either in the body of the financial statements or in the accompanying notes. MBS, Eurodollar futures contracts and retained interests in securitization transactions are accounted for at fair value in the consolidated balance sheets. The methods and assumptions used to estimate fair value for these instruments are presented in Note 12 of the financial statements. | |
The estimated fair value of cash and cash equivalents, restricted cash, accrued interest receivable, receivable for securities sold, repurchase agreements, accrued interest payable, payable for unsettled securities purchases and accounts payable and other liabilities generally approximates their carrying value as of September 30, 2013 and December 31, 2012, due to the short-term nature of these financial instruments. | |
It is impractical to estimate the fair value of the Company's junior subordinated notes. Currently, there is a limited market for these types of instruments and the Company is unable to ascertain what interest rates would be available to the Company for similar financial instruments. Information regarding carrying amount, effective interest rate and maturity date for these instruments is presented in Note 6 to the consolidated financial statements. | |
Property and Equipment, net | ' |
Property and Equipment, net | |
Property and equipment, net, consists of computer equipment with a depreciable life of 3 years, office furniture and equipment with depreciable lives of 8 to 20 years, land which has no depreciable life, and buildings and improvements with depreciable lives of 30 years. Property and equipment is recorded at acquisition cost and depreciated using the straight-line method over the estimated useful lives of the assets. | |
The Company's property and equipment as of September 30, 2013 and December 31, 2012, is presented net of accumulated depreciation of approximately $1,022,000 and $931,000, respectively. Depreciation expense was approximately $91,000 and $89,000 for the nine month periods ended September 30, 2013 and 2012, respectively, and $31,000 and $30,000 for three month periods ended September 30, 2013 and 2012, respectively. | |
Repurchase Agreements | ' |
Repurchase Agreements | |
The Company finances the acquisition of the majority of its PT MBS through the use of repurchase agreements under master repurchase agreements. Pursuant to ASC Topic 860, Transfers and Servicing, the Company accounts for repurchase transactions as collateralized financing transactions, which are carried at their contractual amounts, including accrued interest, as specified in the respective agreements. | |
Share-Based Compensation | ' |
Share-Based Compensation | |
The Company follows the provisions of FASB ASC Topic 718, Compensation – Stock Compensation, to account for stock and stock-based awards. For stock and stock-based awards issued to employees, a compensation charge is recorded against earnings over the vesting period based on the fair value of the award. Payments pursuant to dividend equivalent rights, which are granted along with certain equity based awards, are charged to stockholders' equity when declared. The Company applies a zero forfeiture rate for its equity based awards, as such awards have been granted to a limited number of employees and historical forfeitures have been minimal. A significant forfeiture, or an indication that significant forfeitures may occur, would result in a revised forfeiture rate which would be accounted for prospectively as a change in an estimate. For transactions with non-employees in which services are performed in exchange for the Company's common stock or other equity instruments, the transactions are recorded on the basis of the fair value of the service received or the fair value of the equity instruments issued, whichever is more readily measurable at the date of issuance. | |
Earnings Per Share | ' |
Earnings Per Share | |
The Company follows the provisions of FASB ASC Topic 260, Earnings Per Share, which requires companies with complex capital structures, common stock equivalents or two (or more) classes of securities that participate in the declared dividends to present both basic and diluted earnings per share (“EPS”) on the face of the consolidated statement of operations. Basic EPS is calculated as income available to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted EPS is calculated using the “if converted” method for common stock equivalents. However, the common stock equivalents are not included in computing diluted EPS if the result is anti-dilutive. | |
Outstanding shares of Class B Common Stock, participating and convertible into Class A Common Stock, are entitled to receive dividends in an amount equal to the dividends declared on each share of Class A Common Stock if, as and when authorized and declared by the Board of Directors. Accordingly, shares of the Class B Common Stock are included in the computation of basic EPS using the two-class method and, consequently, are presented separately from Class A Common Stock. | |
The shares of Class C Common Stock are not included in the basic EPS computation as these shares do not have participation rights. The outstanding shares of Class B and Class C Common Stock are not included in the computation of diluted EPS for the Class A Common Stock as the conditions for conversion into shares of Class A Common Stock were not met. | |
Reclassifications | ' |
Reclassifications | |
Certain prior period amounts have been reclassified to conform to the current period presentations. | |
Income Taxes | ' |
Income Taxes | |
Bimini Capital has elected to be taxed as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”), and Orchid, until the closing of its IPO on February 20, 2013, was a “qualified REIT subsidiary” of Bimini Capital under the Code. Beginning with its initial short tax period commencing on February 20, 2013 and ending December 31, 2013, Orchid expects to elect and intends to qualify to be taxed as a REIT, and Orchid will file a REIT tax return separate for Bimini Capital. REITs are generally not subject to federal income tax on their REIT taxable income provided that they distribute to their stockholders at least 90% of their REIT taxable income on an annual basis. In addition, a REIT must meet other provisions of the Code to retain its tax status. At September 30, 2013, management believes that the Company has complied with Code requirements and Bimini Capital continues to qualify as a REIT. As further described in Note 10, Income Taxes, Bimini Advisors and MortCo are taxpaying entities for income tax purposes and are taxed separately from the REIT. | |
The Company's U.S. federal income tax returns for years ended on or after December 31, 2010 remain open for examination. Although management believes its calculations for tax returns are correct and the positions taken thereon are reasonable, the final outcome of tax audits could be materially different from the tax returns filed by the Company, and those differences could result in significant costs or benefits to the Company. | |
The Company measures, recognizes and presents its uncertain tax positions in accordance with FASB ASC 740, Income Taxes. Under that guidance, the Company assesses the likelihood, based on their technical merit, that tax positions will be sustained upon examination based on the facts, circumstances and information available at the end of each period. The measurement of uncertain tax positions is adjusted when new information is available, or when an event occurs that requires a change. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This new standard requires the netting of unrecognized tax benefits against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions. Under the new standard, unrecognized tax benefits will be netted against all available same-jurisdiction loss or other tax carryforwards that would be utilized, rather than only against carryforwards that are created by the unrecognized tax benefits. The ASU is effective beginning January 1, 2014 on either a prospective or retrospective basis. The guidance represents a change in financial statement presentation only and the Company does not expect that this ASU will have a material impact on its consolidated financial results. | |
In July 2013, the FASB issued ASU 2013-10, Derivatives and Hedging (Topic 815): Inclusion of the Fed Funds Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes. The standard permits the Fed Funds Effective Swap Rate to be used as a benchmark interest rate for hedge accounting purposes. The new guidance is effective for hedging relationships entered into on or after July 17, 2013. The Company does not expect that this ASU will have a material impact on its consolidated financial statements. | |
In June 2013, the FASB issued ASU 2013-08, Financial Services – Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements. The amendments in this Update modify the guidance for determining whether an entity is an investment company, update the measurement requirements for noncontrolling interests in other investment companies and require additional disclosures for investment companies under US GAAP. The amendments in the Update develop a two-tiered approach for the assessment of whether an entity is an investment company which requires an entity to possess certain fundamental characteristics while allowing judgment in assessing other typical characteristics. The amendments in this Update also revise the measurement guidance in Topic 946 such that investment companies must measure noncontrolling ownership interests in other investment companies at fair value, rather than applying the equity method of accounting to such interests. The new guidance is effective for an entity's interim and annual reporting periods in fiscal years that begin after December 15, 2013. Earlier application is prohibited. The Company does not expect that this ASU will have a material impact on its financial statements. | |
In February 2013, the FASB issued ASU 2013-04, Liabilities (Topic 405) - Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date ("ASU 2013-04"). The objective of this ASU is to provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, except for obligations addressed within existing US GAAP. The amendments in ASU 2013-04 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013, and should be retrospectively applied to all prior periods presented for those obligations resulting from joint and several liability arrangements within the ASU's scope that exist at the beginning of an entity's fiscal year of adoption. Early adoption is permitted. The Company does not expect that this ASU will have a material impact on its consolidated financial statements. | |
In January 2013, the FASB released ASU 2013-01 Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, which served solely to clarify the scope of financial instruments included in ASU 2011-11 as there was concern about diversity in practice. The objectives of ASU 2013-01 and ASU 2011-11 are to support further convergence of US GAAP and IFRS requirements. These updates are effective for annual reporting periods beginning on or after January 1, 2013 and interim periods within those annual periods. The adoption of this ASU had no effect on the Company's consolidated financial statements. | |
In December 2011, the FASB issued ASU 2011-11, Disclosures about Offsetting Assets and Liabilities, requiring improved information about financial instruments and derivative instruments that are either (1) offset in accordance with ASC 210-20-45 or ASC 815-10-45 or (2) subject to an enforceable master netting arrangement. This information will enable users of an entity's financial statements to evaluate the effect or potential effect of netting arrangements on an entity's financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments in the scope of this ASU. The Company is required to apply the amendments for annual periods beginning on or after January 1, 2013, and interim periods within those annual periods. The disclosures required are to be provided retrospectively for all comparative periods presented. The adoption of this ASU had no effect on the Company's consolidated financial statements. |
MortgageBacked_Securities_Tabl
Mortgage-Backed Securities (Tables) | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Mortgage Backed Securities Tables [Abstract] | ' | |||||
Schedule of Mortgage-Backed Securities Reconciliation | ' | |||||
The following table presents the Company's MBS portfolio as of September 30, 2013 and December 31, 2012: | ||||||
(in thousands) | ||||||
30-Sep-13 | 31-Dec-12 | |||||
Pass-Through MBS: | ||||||
Hybrid Adjustable-rate Mortgages | $ | 134,754 | $ | 87,693 | ||
Adjustable-rate Mortgages | 6,150 | 20,857 | ||||
Fixed-rate Mortgages | 207,529 | 49,846 | ||||
Total Pass-Through MBS | 348,433 | 158,396 | ||||
Structured MBS: | ||||||
Interest-Only Securities | 16,948 | 5,244 | ||||
Inverse Interest-Only Securities | 5,960 | 4,515 | ||||
Total Structured MBS | 22,908 | 9,759 | ||||
Total | $ | 371,341 | $ | 168,155 | ||
Included in the table above at September 30, 2013 are $331.8 million of MBS assets that may only be used to settle liabilities of the consolidated VIE. | ||||||
Schedule Of Mortgage-Backed Securities by Contractual Maturity | ' | |||||
The following table summarizes the Company's MBS portfolio as of September 30, 2013 and December 31, 2012, according to the contractual maturities of the securities in the portfolio. Actual maturities of MBS investments are generally shorter than stated contractual maturities and are affected by the contractual lives of the underlying mortgages, periodic payments of principal, and prepayments of principal. | ||||||
(in thousands) | ||||||
30-Sep-13 | 31-Dec-12 | |||||
Greater than one year and less than five years | $ | 61 | $ | 163 | ||
Greater than five years and less than ten years | 1,662 | 12,980 | ||||
Greater than or equal to ten years | 369,618 | 155,012 | ||||
Total | $ | 371,341 | $ | 168,155 |
Retained_Interests_In_Securiti1
Retained Interests In Securitizations (Tables) | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Retained Interests In Securitizations Tables [Abstract] | ' | |||||
Schedule of Retained Interests In Securitizations | ' | |||||
The following table summarizes the estimated fair value of the Company's retained interests in asset backed securities as of September 30, 2013 and December 31, 2012: | ||||||
(in thousands) | ||||||
Series | Issue Date | 30-Sep-13 | 31-Dec-12 | |||
HMAC 2004-1 | 4-Mar-04 | $ | - | $ | 74 | |
HMAC 2004-2 | 10-May-04 | - | 890 | |||
HMAC 2004-3 | 30-Jun-04 | 1,482 | 750 | |||
HMAC 2004-4 | 16-Aug-04 | 1,457 | 881 | |||
HMAC 2004-5 | 28-Sep-04 | 460 | 741 | |||
Total | $ | 3,399 | $ | 3,336 |
Repurchase_Agreements_Tables
Repurchase Agreements (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Disclosure of Repurchase Agreements [Abstract] | ' | |||||||||||
Schedule of Repurchase Agreements | ' | |||||||||||
As of September 30, 2013 and December 31, 2012, the Company's repurchase agreements had remaining maturities as summarized below: | ||||||||||||
(in thousands) | ||||||||||||
OVERNIGHT | BETWEEN 2 | BETWEEN 31 | GREATER | |||||||||
(1 DAY OR | AND | AND | THAN | |||||||||
LESS) | 30 DAYS | 90 DAYS | 90 DAYS | TOTAL | ||||||||
30-Sep-13 | ||||||||||||
Fair value of securities pledged, including accrued | ||||||||||||
interest receivable and receivable for | ||||||||||||
securities sold | $ | 25,386 | $ | 230,401 | $ | 101,706 | $ | - | $ | 357,493 | ||
Repurchase agreement liabilities associated with | ||||||||||||
these securities | $ | 25,067 | $ | 216,084 | $ | 95,588 | $ | - | $ | 336,739 | ||
Net weighted average borrowing rate | 0.35% | 0.38% | 0.34% | - | 0.37% | |||||||
31-Dec-12 | ||||||||||||
Fair value of securities pledged, including accrued | ||||||||||||
interest receivable | $ | - | $ | 158,765 | $ | - | $ | - | $ | 158,765 | ||
Repurchase agreement liabilities associated with | ||||||||||||
these securities | $ | - | $ | 150,294 | $ | - | $ | - | $ | 150,294 | ||
Net weighted average borrowing rate | - | 0.49% | - | - | 0.49% | |||||||
As of September 30, 2013, the outstanding repurchase obligations of the consolidated VIE included in the table above was $301.7 million. | ||||||||||||
Schedule of Underlying Assets of Repurchase Agreements when Amount of Repurchase Agreements Exceeds 10 Percent of Assets | ' | |||||||||||
At September 30, 2013 and December 31, 2012, the Company had a maximum amount at risk (the difference between the amount loaned to the Company, including interest payable, and the fair value of securities pledged, including accrued interest on such securities and receivable for securities sold) of approximately $20.7 million and approximately $9.0 million, respectively. Summary information regarding amounts at risk with individual counterparties greater than 10% of equity at September 30, 2013 and December 31, 2012 is as follows: | ||||||||||||
(in thousands) | ||||||||||||
Weighted | ||||||||||||
Average | ||||||||||||
Amount | Maturity | |||||||||||
Repurchase Agreement Counterparties | at Risk | (in Days) | ||||||||||
30-Sep-13 | ||||||||||||
Citigroup Global Markets, Inc. | $ | 6,924 | 26 | |||||||||
31-Dec-12 | ||||||||||||
Citigroup Global Markets, Inc. | $ | 3,714 | 18 | |||||||||
South Street Securities, LLC | 1,802 | 7 | ||||||||||
Suntrust Robinson Humphrey, Inc. | 1,123 | 7 | ||||||||||
The PrinceRidge Group, LLC | 979 | 15 | ||||||||||
KGS - Alpha Capital Markets, L.P. | 843 | 21 | ||||||||||
Cantor Fitzgerald & Co. | 541 | 4 | ||||||||||
Summary information regarding amounts at risk with individual counterparties greater than 10% of stockholders' equity attributable to Bimini Capital equity at September 30, 2013 is as follows: | ||||||||||||
(in thousands) | ||||||||||||
Weighted | ||||||||||||
Average | ||||||||||||
Amount | Maturity | |||||||||||
Repurchase Agreement Counterparties | at Risk | (in Days) | ||||||||||
30-Sep-13 | ||||||||||||
Suntrust Robinson Humphrey, Inc. | $ | 1,018 | 7 | |||||||||
The PrinceRidge Group, LLC | 950 | 21 |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Disclosure Of Derivative Financial Instruments [Abstract] | ' | |||||||||||
Schedule of Eurodollar Futures Positions | ' | |||||||||||
The tables below present information related to the Company's Eurodollar futures positions at September 30, 2013 and December 31, 2012. | ||||||||||||
(in thousands) | ||||||||||||
Eurodollar Futures Positions (Consolidated) | ||||||||||||
As of September 30, 2013 | ||||||||||||
Repurchase Agreement Funding Hedges | Junior Subordinated Debt Funding Hedges | |||||||||||
Weighted | Average | Weighted | Average | |||||||||
Average | Contract | Average | Contract | |||||||||
LIBOR | Notional | Open | LIBOR | Notional | Open | |||||||
Expiration Year | Rate | Amount | Equity(1) | Rate | Amount | Equity(1) | ||||||
2013 | 0.28% | $ | 30,000 | $ | -124 | 0.28% | $ | 21,000 | $ | -99 | ||
2014 | 0.47% | 262,500 | -96 | 0.41% | 26,000 | -412 | ||||||
2015 | 0.89% | 275,000 | 95 | 0.89% | 26,000 | -155 | ||||||
2016 | 1.86% | 250,000 | 1,286 | 1.73% | 26,000 | 7 | ||||||
2017 | 2.83% | 250,000 | 1,794 | - | - | - | ||||||
2018 | 3.51% | 250,000 | 1,088 | - | - | - | ||||||
1.94% | $ | 4,043 | 0.90% | $ | -659 | |||||||
Cash posted as collateral, included in restricted cash | $ | 2,711 | ||||||||||
(in thousands) | ||||||||||||
Eurodollar Futures Positions (Consolidated) | ||||||||||||
As of December 31, 2012 | ||||||||||||
Repurchase Agreement Funding Hedges | Junior Subordinated Debt Funding Hedges | |||||||||||
Weighted | Average | Weighted | Average | |||||||||
Average | Contract | Average | Contract | |||||||||
LIBOR | Notional | Open | LIBOR | Notional | Open | |||||||
Expiration Year | Rate | Amount | Equity(1) | Rate | Amount | Equity(1) | ||||||
2013 | 0.34% | $ | 30,000 | $ | -375 | 0.34% | $ | 21,000 | $ | -341 | ||
2014 | - | - | - | 0.48% | 26,000 | -393 | ||||||
2015 | - | - | - | 0.74% | 26,000 | -192 | ||||||
2016 | - | - | - | 1.01% | 26,000 | -57 | ||||||
0.34% | $ | -375 | 0.57% | $ | -983 | |||||||
Cash posted as collateral, included in restricted cash | $ | 227 | ||||||||||
The table below presents information related solely to Bimini Capital's Eurodollar futures positions at September 30, 2013. | ||||||||||||
(in thousands) | ||||||||||||
Eurodollar Futures Positions (Parent-Only) | ||||||||||||
As of September 30, 2013 | ||||||||||||
Repurchase Agreement Funding Hedges | Junior Subordinated Debt Funding Hedges | |||||||||||
Weighted | Average | Weighted | Average | |||||||||
Average | Contract | Average | Contract | |||||||||
LIBOR | Notional | Open | LIBOR | Notional | Open | |||||||
Expiration Year | Rate | Amount | Equity(1) | Rate | Amount | Equity(1) | ||||||
2013 | 0.28% | $ | 30,000 | $ | -124 | 0.28% | $ | 21,000 | $ | -99 | ||
2014 | - | - | - | 0.41% | 26,000 | -412 | ||||||
2015 | - | - | - | 0.89% | 26,000 | -155 | ||||||
2016 | - | - | - | 1.73% | 26,000 | 7 | ||||||
0.28% | $ | -124 | 0.90% | $ | -659 | |||||||
Cash posted as collateral, included in restricted cash | $ | 130 | ||||||||||
Open equity represents the cumulative gains (losses) recorded on open futures positions. | ||||||||||||
Schedule Of Effect Eurodollar Futures Contract [Table Text Block] | ' | |||||||||||
The tables below present the effect of the Company's derivative financial instruments on the statements of operations for the nine and three months ended September 30, 2013 and 2012. | ||||||||||||
(in thousands) | ||||||||||||
Nine Months Ended September 30, | ||||||||||||
Consolidated | Parent-Only | |||||||||||
Eurodollar futures contracts (short positions) | 2013 | 2012 | 2013 | 2012 | ||||||||
Repurchase Agreement Hedges | $ | 4,077 | $ | -231 | $ | -19 | $ | -191 | ||||
Junior Subordinated Notes Hedges | 69 | -532 | 69 | -532 | ||||||||
$ | 4,146 | $ | -763 | $ | 50 | $ | -723 | |||||
(in thousands) | ||||||||||||
Three Months Ended September 30, | ||||||||||||
Consolidated | Parent-Only | |||||||||||
Eurodollar futures contracts (short positions) | 2013 | 2012 | 2013 | 2012 | ||||||||
Repurchase Agreement Hedges | $ | -2,283 | $ | -100 | $ | -11 | $ | -85 | ||||
Junior Subordinated Notes Hedges | -167 | -238 | -167 | -238 | ||||||||
$ | -2,450 | $ | -338 | $ | -178 | $ | -323 |
Capital_Stock_Tables
Capital Stock (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Capital Stock Tables [Abstract] | ' | ||||||
Schedule Of Outstanding Stock [Table Text Block] | ' | ||||||
At September 30, 2013 and December 31, 2012, Bimini Capital's capital stock is comprised of the following: | |||||||
(in thousands) | |||||||
30-Sep-13 | 31-Dec-12 | ||||||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; designated, 1,800,000 | |||||||
shares as Class A Redeemable and 2,000,000 shares as Class B Redeemable; no | |||||||
shares issued and outstanding as of September 30, 2013 and December 31, 2012 | $ | - | $ | - | |||
Class A Common Stock, $0.001 par value; 98,000,000 shares designated: 11,509,756 | |||||||
shares issued and outstanding as of September 30, 2013 and 10,616,912 shares | |||||||
issued and outstanding as of December 31, 2012 | 11,510 | 10,617 | |||||
Class B Common Stock, $0.001 par value; 1,000,000 shares designated, 31,938 shares | |||||||
issued and outstanding as of September 30, 2013 and December 31, 2012 | 32 | 32 | |||||
Class C Common Stock, $0.001 par value; 1,000,000 shares designated, 31,938 shares | |||||||
issued and outstanding as of September 30, 2013 and December 31, 2012 | 32 | 32 | |||||
Issuances of Common Stock | ' | ||||||
The table below presents information related to the Company's Class A Common Stock issued to its independent directors for the payment of director fees and to employees pursuant to the terms of its stock incentive plan grants for the nine and three months ended September 30, 2013 and 2012. | |||||||
Nine Months Ended September 30, | Three Months Ended September 30, | ||||||
Shares Issued Related To: | 2013 | 2012 | 2013 | 2012 | |||
Directors' compensation | - | 242,567 | - | - | |||
Vesting incentive plan shares | 892,844 | - | 876,640 | - | |||
Total shares of Class A Common Stock issued | 892,844 | 242,567 | 876,640 | - | |||
There were no issuances of the Company's Class B Common Stock and Class C Common Stock during the nine and three months ended September 30, 2013 and 2012. |
Stock_Incentive_Plans_Tables
Stock Incentive Plans (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Share-based Arrangements with Employees and Nonemployees [Abstract] | ' | |||||||
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | ' | |||||||
A summary of phantom share activity during the nine months ended September 30, 2013 and 2012 is presented below: | ||||||||
Nine Months Ended September 30, | ||||||||
2013 | 2012 | |||||||
Weighted- | Weighted- | |||||||
Average | Average | |||||||
Grant-Date | Grant-Date | |||||||
Shares | Fair Value | Shares | Fair Value | |||||
Nonvested, at January 1 | 367,844 | $ | 1.11 | 367,844 | $ | 1.11 | ||
Granted during the period | 525,000 | 0.23 | - | - | ||||
Vested during the period | -892,844 | 0.6 | - | - | ||||
Nonvested, at September 30 | - | $ | - | 367,844 | $ | 1.11 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Earnings Per Share Discosure Tables [Abstract] | ' | ||||||||||
Earnings Per Share | ' | ||||||||||
The table below reconciles the numerators and denominators of the basic and diluted EPS. | |||||||||||
(in thousands, except per-share information) | |||||||||||
Nine Months Ended September 30, | Three Months Ended September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||
Basic and diluted EPS per Class A common share: | |||||||||||
(Loss) income available to Class A common shares: | |||||||||||
Basic and diluted | $ | -723 | $ | -114 | $ | 1,840 | $ | -759 | |||
Weighted average common shares: | |||||||||||
Class A common shares outstanding at the balance sheet date | 11,510 | 10,329 | 11,510 | 10,329 | |||||||
Effect of weighting | -727 | -97 | -251 | - | |||||||
Weighted average shares-basic and diluted | 10,783 | 10,232 | 11,259 | 10,329 | |||||||
(Loss) income per Class A common share: | |||||||||||
Basic and diluted | $ | -0.07 | $ | -0.01 | $ | 0.16 | $ | -0.07 | |||
(in thousands, except per-share information) | |||||||||||
Nine Months Ended September 30, | Three Months Ended September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||
Basic and diluted EPS per Class B common share: | |||||||||||
(Loss) income available to Class B common shares: | |||||||||||
Basic and diluted | $ | -2 | $ | - | $ | 5 | $ | -2 | |||
Weighted average common shares: | |||||||||||
Class B common shares outstanding at the balance sheet date | 32 | 32 | 32 | 32 | |||||||
Effect of weighting | - | - | - | - | |||||||
Weighted average shares-basic and diluted | 32 | 32 | 32 | 32 | |||||||
(Loss) income per Class B common share: | |||||||||||
Basic and diluted | $ | -0.07 | $ | -0.01 | $ | 0.16 | $ | -0.07 | |||
Fair_Value_Tables
Fair Value (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Fair Value Tables [Abstract] | ' | ||||||||
Assets Measured at Fair Value on Recurring Basis | ' | ||||||||
The following table presents financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012: | |||||||||
(in thousands) | |||||||||
Quoted Prices | |||||||||
in Active | Significant | ||||||||
Markets for | Other | Significant | |||||||
Identical | Observable | Unobservable | |||||||
Fair Value | Assets | Inputs | Inputs | ||||||
Measurements | (Level 1) | (Level 2) | (Level 3) | ||||||
30-Sep-13 | |||||||||
Mortgage-backed securities | $ | 371,341 | $ | - | $ | 371,341 | $ | - | |
Eurodollar futures contracts | 2,711 | 2,711 | - | - | |||||
Retained interests | 3,399 | - | - | 3,399 | |||||
31-Dec-12 | |||||||||
Mortgage-backed securities | $ | 168,155 | $ | - | $ | 168,155 | $ | - | |
Eurodollar futures contracts | 227 | 227 | - | - | |||||
Retained interests | 3,336 | - | - | 3,336 | |||||
Changes is Level 3 Assets Measured at Fair Value on a Recurring Basis | ' | ||||||||
The following table illustrates a roll forward for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended September 30, 2013 and 2012: | |||||||||
(in thousands) | |||||||||
Retained Interests | Mortgage Loans Held for Sale | ||||||||
2013 | 2012 | 2012 | |||||||
Balances, January 1 | $ | 3,336 | $ | 3,495 | $ | 40 | |||
Gain (loss) included in earnings | 2,536 | 4,205 | -17 | ||||||
Collections | -2,473 | -3,385 | -23 | ||||||
Balances, September 30 | $ | 3,399 | $ | 4,315 | $ | - | |||
Quantitative Information About Level 3 Fair Value Measurements | ' | ||||||||
The following table summarizes the significant quantitative information about our level 3 fair value measurements as of September 30, 2013. | |||||||||
Retained interest fair value (in thousands) | $ | 3,399 | |||||||
Prepayment Assumption | CPR Range (Weighted Average) | ||||||||
Constant Prepayment Rate | 10% (10%) | ||||||||
Default Assumptions | Probability of Default | Severity Range (Weighted Average) | Range Of Loss Timing | ||||||
Real Estate Owned | 100% | 26.03% - 66.25% (28.7%) | Next 10 Months | ||||||
Loans in Foreclosure | 100% | 26.03% - 66.25% (28.7%) | Month 4 - 13 | ||||||
Loans 90 Day Delinquent | 100% | 45% | Month 11-28 | ||||||
Loans 60 Day Delinquent | 85% | 45% | Month 11-28 | ||||||
Loans 30 Day Delinquent | 75% | 45% | Month 11-28 | ||||||
Current Loans | 3.18% - 4.79% | 45% | Month 29 and Beyond | ||||||
Cash Flow Recognition | Valuation Technique | Remaining Life Range (Weighted Average) | Discount Rate Range (Weighted Average) | ||||||
Nominal Cash Flows | Discounted Cash Flow | 0.5 -11.3 years (2.5) | 27.5% (27.5%) | ||||||
Discounted Cash Flows | Discounted Cash Flow | 0.5 -9.8 years (0.8) | 27.5% (27.5%) |
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Variable Interest Entity Noncontrolling Interest [Abstract] | ' | ||||||
Changes In Equity From Noncontrolling Interests [Table Text Block] | ' | ||||||
The table below presents the effects of the above on the changes in equity attributable to Bimini Capital stockholders during the nine months ended September 30, 2013. | |||||||
(in thousands) | |||||||
Net loss attributable to Bimini Capital | $ | -725 | |||||
Transfers from the noncontrolling interests | |||||||
Increase in Bimini Capital's paid-in capital for sale of 2,360,000 common shares of Orchid | 278 | ||||||
Change from net loss attributable to Bimini Capital and transfers from noncontrolling interest | $ | -447 | |||||
Rollforward Of Noncontrolling Interest [Table Text Block] | ' | ||||||
The following is a roll forward of the noncontrolling interest during the nine months ended September 30, 2013. | |||||||
(in thousands) | |||||||
Balance, January 1, 2013 | $ | - | |||||
Issuance of common shares of Orchid Island Capital, Inc. | 35,122 | ||||||
Net income attributed to noncontrolling interest | -1,235 | ||||||
Cash dividend paid to noncontrolling interest | -2,231 | ||||||
Balance, September 30, 2013 | $ | 31,656 | |||||
Variable Interest Entity Balance Sheet [Table Text Block] | ' | ||||||
The following table presents the assets and liabilities of Orchid that are reflected on our consolidated balance sheets at September 30, 2013 (excluding intercompany balances). | |||||||
(in thousands) | |||||||
ASSETS: | |||||||
Mortgage-backed securities, at fair value | |||||||
Pledged to counterparties | $ | 277,982 | |||||
Unpledged | 53,805 | ||||||
Total mortgage-backed securities | 331,787 | ||||||
Cash and cash equivalents | 7,901 | ||||||
Restricted cash | 2,581 | ||||||
Accrued interest receivable | 1,388 | ||||||
Receivable for securities sold | 41,150 | ||||||
Prepaid expenses and other assets | 673 | ||||||
Total Assets | $ | 385,480 | |||||
LIABILITIES: | |||||||
Repurchase agreements | $ | 301,657 | |||||
Liability for unsettled securities purchased | 38,720 | ||||||
Accrued interest payable | 78 | ||||||
Accounts payable, accrued expenses and other | 121 | ||||||
Total Liabilities | $ | 340,576 | |||||
Variable Interest Entity Income Statement [Table Text Block] | ' | ||||||
The following table summarizes the operating results of Orchid (excluding intercompany transactions, including approximately $454,000 of management fees charged to Orchid) for the period beginning February 20, 2013 (the date of its IPO) through September 30, 2013 which are reflected in our consolidated statement of operations for the nine and three months ended September 30, 2013. | |||||||
Nine Months Ended | Three Months Ended | ||||||
(in thousands) | 30-Sep-13 | 30-Sep-13 | |||||
Interest income | $ | 6,011 | $ | 2,551 | |||
Interest expense | -753 | -294 | |||||
Net interest income | 5,258 | 2,257 | |||||
Unrealized (losses) gains on mortgage-backed securities | -8,532 | 86 | |||||
Realized losses on mortgage-backed securities | -1,491 | -667 | |||||
Gains (losses) on Eurodollar futures | 4,096 | -2,272 | |||||
Net portfolio deficiency | -669 | -596 | |||||
Expenses: | |||||||
Directors' fees and liability insurance | 207 | 83 | |||||
Audit, legal and other professional fees | 223 | 71 | |||||
Direct REIT operating expenses | 111 | 37 | |||||
Other administrative | 84 | 31 | |||||
Total expenses | 625 | 222 | |||||
Net loss | $ | -1,294 | $ | -818 | |||
Significant_Accounting_Policie
Significant Accounting Policies - Liquidity (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | |
Significant Accounting Policies [Abstract] | ' | ' | ' | ' | ' | ' |
Orchid Island Capital Offering Expenses | $0 | $0 | $3,042,322 | $0 | ' | ' |
Bimini Ownership of Orchid Island Capital, Inc. | 29.38% | ' | 29.38% | ' | 100.00% | ' |
Cash And Cash Equivalents At Carrying Value | 10,479,242 | 7,310,777 | 10,479,242 | 7,310,777 | 6,592,561 | 4,300,785 |
Mortgage Backed Securities At Fair Value | 371,341,010 | ' | 371,341,010 | ' | 168,155,007 | ' |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 35,005,414 | ' | 35,005,414 | ' | 3,516,772 | ' |
Stockholders Equity | 3,349,005 | ' | 3,349,005 | ' | 3,516,772 | ' |
Noncontrolling Interests | 31,656,409 | ' | 31,656,409 | ' | 0 | ' |
Principal and Interest Payments Received on MBS | ' | ' | 37,400,000 | ' | ' | ' |
Payments received on retained interests in securitizations | ' | ' | $2,473,066 | $3,385,778 | ' | ' |
Significant_Accounting_Policie1
Significant Accounting Policies - Property and Equipment (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Significant Accounting Policies Property and Equipment [Line Items] | ' | ' | ' | ' | ' |
Accumulated Depreciation at Period End | $1,022,000 | ' | $1,022,000 | ' | $931,000 |
Depreciation Expense Recorded During the Period | $31,000 | $30,000 | $91,000 | $89,000 | ' |
[ComputerEquipmentMember] | [MinimumMember] | ' | ' | ' | ' | ' |
Significant Accounting Policies Property and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Estimated Useful Lives | ' | ' | ' 3 | ' | ' |
[ComputerEquipmentMember] | [MaximumMember] | ' | ' | ' | ' | ' |
Significant Accounting Policies Property and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Estimated Useful Lives | ' | ' | ' 3 | ' | ' |
[FurnitureAndFixturesMember] | [MinimumMember] | ' | ' | ' | ' | ' |
Significant Accounting Policies Property and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Estimated Useful Lives | ' | ' | ' 8 | ' | ' |
[FurnitureAndFixturesMember] | [MaximumMember] | ' | ' | ' | ' | ' |
Significant Accounting Policies Property and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Estimated Useful Lives | ' | ' | ' 20 | ' | ' |
[BuildingAndBuildingImprovementsMember] | [MinimumMember] | ' | ' | ' | ' | ' |
Significant Accounting Policies Property and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Estimated Useful Lives | ' | ' | ' 30 | ' | ' |
[BuildingAndBuildingImprovementsMember] | [MaximumMember] | ' | ' | ' | ' | ' |
Significant Accounting Policies Property and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Estimated Useful Lives | ' | ' | ' 30 | ' | ' |
Significant_Accounting_Policie2
Significant Accounting Policies - Cash (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Significant Accounting Policies [Abstract] | ' | ' |
Repurchase Agreement Margin | $0 | $614,000 |
Cash Held by Broker as Margin on Eurodollar Futures Contracts | 2,711,000 | 227,000 |
CashUninsuredAmount | $9,100,000 | ' |
Significant_Accounting_Policie3
Significant Accounting Policies - Income Taxes (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Significant Accounting Policies [Abstract] | ' |
Earliest Tax Year Open to Examination | '2011 |
Required Annual Distribution Of Taxable Income | 90.00% |
MortgageBacked_Securities_By_T
Mortgage-Backed Securities - By Type (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Mortgage Backed Securities [Line Items] | ' | ' |
Fair Value | $371,341,010 | $168,155,007 |
[VariableInterestEntityPrimaryBeneficiaryMember] | ' | ' |
Mortgage Backed Securities [Line Items] | ' | ' |
Fair Value | 331,786,933 | 0 |
[MortgageBackedSecuritiesPassThroughCertificatesMember] | ' | ' |
Mortgage Backed Securities [Line Items] | ' | ' |
Fair Value | 348,433,000 | 158,396,000 |
[MortgageBackedSecuritiesStructuredCertificatesMember] | ' | ' |
Mortgage Backed Securities [Line Items] | ' | ' |
Fair Value | 22,908,000 | 9,759,000 |
[HybridAdjustableRateMortgagesMember] | [MortgageBackedSecuritiesPassThroughCertificatesMember] | ' | ' |
Mortgage Backed Securities [Line Items] | ' | ' |
Fair Value | 134,754,000 | 87,693,000 |
[AdjustableRateMortgagesMember] | [MortgageBackedSecuritiesPassThroughCertificatesMember] | ' | ' |
Mortgage Backed Securities [Line Items] | ' | ' |
Fair Value | 6,150,000 | 20,857,000 |
[FixedRateMortgagesMember] | [MortgageBackedSecuritiesPassThroughCertificatesMember] | ' | ' |
Mortgage Backed Securities [Line Items] | ' | ' |
Fair Value | 207,529,000 | 49,846,000 |
[InterestOnlySecuritiesMember] | [MortgageBackedSecuritiesStructuredCertificatesMember] | ' | ' |
Mortgage Backed Securities [Line Items] | ' | ' |
Fair Value | 16,948,000 | 5,244,000 |
[InverseInterestOnlyMember] | [MortgageBackedSecuritiesStructuredCertificatesMember] | ' | ' |
Mortgage Backed Securities [Line Items] | ' | ' |
Fair Value | $5,960,000 | $4,515,000 |
MortgageBacked_Securities_By_M
Mortgage-Backed Securities - By Maturity (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Mortgage Backed Securities By Maturity [Abstract] | ' | ' |
Less than one year | $0 | $0 |
Greater than one year and less than five years | 61,000 | 163,000 |
Greater than five years and less than ten years | 1,662,000 | 12,980,000 |
Greater than or equal to ten years | 369,618,000 | 155,012,000 |
Total mortgage-backed securities | $371,341,010 | $168,155,007 |
Mortgage_Backed_Securities_Ple
Mortgage Backed Securities - Pledged Securities - Narrative (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Securities Pledged As Collateral [Abstract] | ' | ' |
Unpledged Mortgage Backed Securities | $55,942,550 | $9,758,557 |
Unsettled Securities Purchases Included in Unpledged Securities | $38,800,000 | $0 |
Retained_Interests_In_Securiti2
Retained Interests In Securitizations (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Retained Interestes Securitzations [Line Items] | ' | ' |
Retained interests in securitizations | $3,398,546 | $3,336,009 |
[Hmac20041Member] | ' | ' |
Retained Interestes Securitzations [Line Items] | ' | ' |
Issue Date | 'March 4, 2004 | ' |
Retained interests in securitizations | 0 | 74,000 |
[Hmac20042Member] | ' | ' |
Retained Interestes Securitzations [Line Items] | ' | ' |
Issue Date | 'May 10, 2004 | ' |
Retained interests in securitizations | 0 | 890,000 |
[Hmac20043Member] | ' | ' |
Retained Interestes Securitzations [Line Items] | ' | ' |
Issue Date | 'June 30, 2004 | ' |
Retained interests in securitizations | 1,482,000 | 750,000 |
[Hmac20044Member] | ' | ' |
Retained Interestes Securitzations [Line Items] | ' | ' |
Issue Date | 'August 16, 2004 | ' |
Retained interests in securitizations | 1,457,000 | 881,000 |
[Hmac20045Member] | ' | ' |
Retained Interestes Securitzations [Line Items] | ' | ' |
Issue Date | 'September 28, 2004 | ' |
Retained interests in securitizations | $460,000 | $741,000 |
Repurchase_Agreements_Narrativ
Repurchase Agreements - Narrative (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Repurchase Agreement [Line Items] | ' | ' |
Repurchase agreements | $336,739,006 | $150,294,174 |
Repurchase Agreements Weighted Average Borrowing Rates | 0.37% | 0.49% |
Fair Value of securities pledged, including accrued interest receivable | 357,493,000 | 158,765,000 |
Repurchase Agreement Margin | 0 | 614,000 |
[VariableInterestEntityPrimaryBeneficiaryMember] | ' | ' |
Repurchase Agreement [Line Items] | ' | ' |
Repurchase agreements | $301,656,523 | $0 |
Repurchase_Agreements_Maturiti
Repurchase Agreements - Maturities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Assets Sold under Agreements to Repurchase [Line Items] | ' | ' |
Fair Value of securities pledged, including accrued interest receivable | $357,493,000 | $158,765,000 |
Repurchase agreements | 336,739,006 | 150,294,174 |
Net weighted average borrowing rate | 0.37% | 0.49% |
[MaturityOvernightMember] | ' | ' |
Assets Sold under Agreements to Repurchase [Line Items] | ' | ' |
Fair Value of securities pledged, including accrued interest receivable | 25,386,000 | 0 |
Repurchase agreements | 25,067,000 | 0 |
Net weighted average borrowing rate | 0.35% | 0.00% |
[MaturityUpTo30DaysMember] | ' | ' |
Assets Sold under Agreements to Repurchase [Line Items] | ' | ' |
Fair Value of securities pledged, including accrued interest receivable | 230,401,000 | 158,765,000 |
Repurchase agreements | 216,084,000 | 150,294,000 |
Net weighted average borrowing rate | 0.38% | 0.49% |
[Maturity30To90DaysMember] | ' | ' |
Assets Sold under Agreements to Repurchase [Line Items] | ' | ' |
Fair Value of securities pledged, including accrued interest receivable | 101,706,000 | 0 |
Repurchase agreements | 95,588,000 | 0 |
Net weighted average borrowing rate | 0.34% | 0.00% |
[MaturityOver90DaysMember] | ' | ' |
Assets Sold under Agreements to Repurchase [Line Items] | ' | ' |
Fair Value of securities pledged, including accrued interest receivable | 0 | 0 |
Repurchase agreements | $0 | $0 |
Net weighted average borrowing rate | 0.00% | 0.00% |
Repurchase_Agreements_Amounts_
Repurchase Agreements - Amounts At Risk (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Repurchase Agreement Counterparty [Line Items] | ' | ' |
Amount At Risk | $20,700,000 | $9,000,000 |
[ParentCompanyMember] | ' | ' |
Repurchase Agreement Counterparty [Line Items] | ' | ' |
Amount At Risk | 2,400,000 | ' |
[CitigroupMember] | ' | ' |
Repurchase Agreement Counterparty [Line Items] | ' | ' |
Amount At Risk | 6,924 | 3,714,000 |
Weighted Average Maturity of Repurchase Agreement in Days | '26 days | '18 days |
[CantorMember] | ' | ' |
Repurchase Agreement Counterparty [Line Items] | ' | ' |
Amount At Risk | ' | 541,000 |
Weighted Average Maturity of Repurchase Agreement in Days | ' | '4 days |
[SouthStreetMember] | ' | ' |
Repurchase Agreement Counterparty [Line Items] | ' | ' |
Amount At Risk | ' | 1,802,000 |
Weighted Average Maturity of Repurchase Agreement in Days | ' | '7 days |
[KgsMember] | ' | ' |
Repurchase Agreement Counterparty [Line Items] | ' | ' |
Amount At Risk | ' | 843,000 |
Weighted Average Maturity of Repurchase Agreement in Days | ' | '21 days |
[SuntrustMember] | ' | ' |
Repurchase Agreement Counterparty [Line Items] | ' | ' |
Amount At Risk | ' | 1,123,000 |
Weighted Average Maturity of Repurchase Agreement in Days | ' | '7 days |
[SuntrustMember] | [ParentCompanyMember] | ' | ' |
Repurchase Agreement Counterparty [Line Items] | ' | ' |
Amount At Risk | 1,018,000 | ' |
Weighted Average Maturity of Repurchase Agreement in Days | '7 days | ' |
[PrinceRidgeMember] | ' | ' |
Repurchase Agreement Counterparty [Line Items] | ' | ' |
Amount At Risk | ' | 979,000 |
Weighted Average Maturity of Repurchase Agreement in Days | ' | '15 days |
[PrinceRidgeMember] | [ParentCompanyMember] | ' | ' |
Repurchase Agreement Counterparty [Line Items] | ' | ' |
Amount At Risk | $950,000 | ' |
Weighted Average Maturity of Repurchase Agreement in Days | '21 days | ' |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Narrative (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Derivitive Financial Instruments [Line Items] | ' | ' |
Type of Derivative Instrument | 'Eurodollar Futures Contract | 'Eurodollar Futures Contract |
Underlying Risk | 'Interest Rate Risk | 'Interest Rate Risk |
Description of Objective | 'In connection with its interest rate risk management strategy, the Company economically hedges a portion of its interest rate risk by entering into derivative financial instrument contracts. | ' |
Derivative_Financial_Instrumen3
Derivative Financial Instruments - Narrative - Notional Amounts (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Eurodollar Futures [Line Items] | ' | ' |
Cash Held by Broker as Margin on Eurodollar Futures Contracts | $2,711,000 | $227,000 |
[ParentCompanyMember] | ' | ' |
Eurodollar Futures [Line Items] | ' | ' |
Cash Held by Broker as Margin on Eurodollar Futures Contracts | 130,000 | ' |
[JuniorSubordinatedNotesMember] | ' | ' |
Eurodollar Futures [Line Items] | ' | ' |
Locked In Libor Rate | 0.90% | 0.57% |
Eurodollar Futures Contracts | -659,000 | -983,000 |
[JuniorSubordinatedNotesMember] | [Year2013ExpirationMember] | ' | ' |
Eurodollar Futures [Line Items] | ' | ' |
Locked In Libor Rate | 0.28% | 0.34% |
Notional Amount | 21,000,000 | 21,000,000 |
Eurodollar Futures Contracts | -99,000 | -341,000 |
[JuniorSubordinatedNotesMember] | [Year2014ExpirationMember] | ' | ' |
Eurodollar Futures [Line Items] | ' | ' |
Locked In Libor Rate | 0.41% | 0.48% |
Notional Amount | 26,000,000 | 26,000,000 |
Eurodollar Futures Contracts | -412,000 | -393,000 |
[JuniorSubordinatedNotesMember] | [Year2015ExpirationMember] | ' | ' |
Eurodollar Futures [Line Items] | ' | ' |
Locked In Libor Rate | 0.89% | 0.74% |
Notional Amount | 26,000,000 | 26,000,000 |
Eurodollar Futures Contracts | -155,000 | -192,000 |
[JuniorSubordinatedNotesMember] | [Year2016ExpirationMember] | ' | ' |
Eurodollar Futures [Line Items] | ' | ' |
Locked In Libor Rate | 1.73% | 1.00% |
Notional Amount | 26,000,000 | 26,000,000 |
Eurodollar Futures Contracts | 7,000 | -57,000 |
[JuniorSubordinatedNotesMember] | [ParentCompanyMember] | ' | ' |
Eurodollar Futures [Line Items] | ' | ' |
Locked In Libor Rate | 0.90% | ' |
Eurodollar Futures Contracts | -659,000 | ' |
[JuniorSubordinatedNotesMember] | [ParentCompanyMember] | [Year2013ExpirationMember] | ' | ' |
Eurodollar Futures [Line Items] | ' | ' |
Locked In Libor Rate | 0.28% | ' |
Notional Amount | 21,000,000 | ' |
Eurodollar Futures Contracts | -99,000 | ' |
[JuniorSubordinatedNotesMember] | [ParentCompanyMember] | [Year2014ExpirationMember] | ' | ' |
Eurodollar Futures [Line Items] | ' | ' |
Locked In Libor Rate | 0.41% | ' |
Notional Amount | 26,000,000 | ' |
Eurodollar Futures Contracts | -412,000 | ' |
[JuniorSubordinatedNotesMember] | [ParentCompanyMember] | [Year2015ExpirationMember] | ' | ' |
Eurodollar Futures [Line Items] | ' | ' |
Locked In Libor Rate | 0.89% | ' |
Notional Amount | 26,000,000 | ' |
Eurodollar Futures Contracts | -155,000 | ' |
[JuniorSubordinatedNotesMember] | [ParentCompanyMember] | [Year2016ExpirationMember] | ' | ' |
Eurodollar Futures [Line Items] | ' | ' |
Locked In Libor Rate | 1.73% | ' |
Notional Amount | 26,000,000 | ' |
Eurodollar Futures Contracts | 7,000 | ' |
[RepurchaseAgreementsHedgedMember] | ' | ' |
Eurodollar Futures [Line Items] | ' | ' |
Locked In Libor Rate | 1.94% | 0.34% |
Eurodollar Futures Contracts | 4,043,000 | -375,000 |
[RepurchaseAgreementsHedgedMember] | [Year2013ExpirationMember] | ' | ' |
Eurodollar Futures [Line Items] | ' | ' |
Locked In Libor Rate | 0.28% | 0.34% |
Notional Amount | 30,000,000 | 30,000,000 |
Eurodollar Futures Contracts | -124,000 | -375,000 |
[RepurchaseAgreementsHedgedMember] | [Year2014ExpirationMember] | ' | ' |
Eurodollar Futures [Line Items] | ' | ' |
Locked In Libor Rate | 0.47% | ' |
Notional Amount | 262,500,000 | ' |
Eurodollar Futures Contracts | -96,000 | ' |
[RepurchaseAgreementsHedgedMember] | [Year2015ExpirationMember] | ' | ' |
Eurodollar Futures [Line Items] | ' | ' |
Locked In Libor Rate | 0.89% | ' |
Notional Amount | 275,000,000 | ' |
Eurodollar Futures Contracts | 95,000 | ' |
[RepurchaseAgreementsHedgedMember] | [Year2016ExpirationMember] | ' | ' |
Eurodollar Futures [Line Items] | ' | ' |
Locked In Libor Rate | 1.86% | ' |
Notional Amount | 250,000,000 | ' |
Eurodollar Futures Contracts | 1,286,000 | ' |
[RepurchaseAgreementsHedgedMember] | [Year2017ExpirationMember] | ' | ' |
Eurodollar Futures [Line Items] | ' | ' |
Locked In Libor Rate | 2.83% | ' |
Notional Amount | 250,000,000 | ' |
Eurodollar Futures Contracts | 1,794,000 | ' |
[RepurchaseAgreementsHedgedMember] | [Year2018ExpirationMember] | ' | ' |
Eurodollar Futures [Line Items] | ' | ' |
Locked In Libor Rate | 3.51% | ' |
Notional Amount | 250,000,000 | ' |
Eurodollar Futures Contracts | 1,088,000 | ' |
[RepurchaseAgreementsHedgedMember] | [ParentCompanyMember] | ' | ' |
Eurodollar Futures [Line Items] | ' | ' |
Locked In Libor Rate | 0.28% | ' |
Eurodollar Futures Contracts | -124,000 | ' |
[RepurchaseAgreementsHedgedMember] | [ParentCompanyMember] | [Year2013ExpirationMember] | ' | ' |
Eurodollar Futures [Line Items] | ' | ' |
Locked In Libor Rate | 0.28% | ' |
Notional Amount | 30,000,000 | ' |
Eurodollar Futures Contracts | -124,000 | ' |
[RepurchaseAgreementsHedgedMember] | [ParentCompanyMember] | [Year2014ExpirationMember] | ' | ' |
Eurodollar Futures [Line Items] | ' | ' |
Locked In Libor Rate | 0.00% | ' |
Notional Amount | 0 | ' |
Eurodollar Futures Contracts | 0 | ' |
[RepurchaseAgreementsHedgedMember] | [ParentCompanyMember] | [Year2015ExpirationMember] | ' | ' |
Eurodollar Futures [Line Items] | ' | ' |
Locked In Libor Rate | 0.00% | ' |
Notional Amount | 0 | ' |
Eurodollar Futures Contracts | 0 | ' |
[RepurchaseAgreementsHedgedMember] | [ParentCompanyMember] | [Year2016ExpirationMember] | ' | ' |
Eurodollar Futures [Line Items] | ' | ' |
Locked In Libor Rate | 0.00% | ' |
Notional Amount | 0 | ' |
Eurodollar Futures Contracts | $0 | ' |
Derivative_Financial_Instrumen4
Derivative Financial Instruments - Income Statement Effect (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gains (losses) on Eurodollar futures | ($2,449,925) | ($337,700) | $4,146,144 | ($763,037) |
[ParentCompanyMember] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gains (losses) on Eurodollar futures | -178,000 | -323,000 | 50,000 | -723,000 |
[JuniorSubordinatedNotesMember] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gains (losses) on Eurodollar futures | -167,000 | -238,000 | 69,000 | -532,000 |
[JuniorSubordinatedNotesMember] | [ParentCompanyMember] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gains (losses) on Eurodollar futures | -167,000 | -238,000 | 69,000 | -532,000 |
[RepurchaseAgreementsHedgedMember] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gains (losses) on Eurodollar futures | -2,283,000 | -100,000 | 4,077,000 | -231,000 |
[RepurchaseAgreementsHedgedMember] | [ParentCompanyMember] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gains (losses) on Eurodollar futures | ($11,000) | ($85,000) | ($19,000) | ($191,000) |
Trust_Preferred_Securities_Nar
Trust Preferred Securities - Narrative (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Debt Instruments [Abstract] | ' | ' |
Description of Trust Preferred Securities | 'During 2005, Bimini Capital sponsored the formation of a statutory trust, known as Bimini Capital Trust II (“BCTII”) of which 100% of the common equity is owned by Bimini Capital. It was formed for the purpose of issuing trust preferred capital securities to third-party investors and investing the proceeds from the sale of such capital securities solely in junior subordinated debt securities of Bimini Capital. The debt securities held by BCTII are the sole assets of BCTII. | ' |
Issuer | 'Bimini Capital Trust II | ' |
Outstanding Principal Balance | $26,804,440 | $26,804,440 |
Variable Rate Basis | 'Three Month LIBOR | ' |
Basis Spread on Variable Rate | 3.50% | ' |
Interest Rate at Period End | 3.75% | ' |
Capital_Stock_Details
Capital Stock (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Preferred Stock Value | $0 | $0 |
Common Stock Value Outstanding | 11,574 | 10,681 |
[PreferredStockMember] | ' | ' |
Preferred Stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred Shares Authorized | 10,000,000 | 10,000,000 |
Designated Class A Redeemable | 1,800,000 | 1,800,000 |
Designated Class B Redeemable | 2,000,000 | 2,000,000 |
Preferred Shares Issued | 0 | 0 |
Preferred Shares Outstanding | 0 | 0 |
Preferred Stock Value | 0 | 0 |
[CommonClassAMember] | ' | ' |
Common Stock, par value (in dollars per share) | $0.00 | $0.00 |
Designated Shares | 98,000,000 | 98,000,000 |
Common Shares Issued | 11,509,756 | 10,616,912 |
Common Shares Outstanding | 11,509,756 | 10,616,912 |
Common Stock Value Outstanding | 11,510,000 | 10,617,000 |
[CommonClassBMember] | ' | ' |
Common Stock, par value (in dollars per share) | $0.00 | $0.00 |
Designated Shares | 1,000,000 | 1,000,000 |
Common Shares Issued | 31,938 | 31,938 |
Common Shares Outstanding | 31,938 | 31,938 |
Common Stock Value Outstanding | 32,000 | 32,000 |
[CommonClassCMember] | ' | ' |
Common Stock, par value (in dollars per share) | $0.00 | $0.00 |
Designated Shares | 1,000,000 | 1,000,000 |
Common Shares Issued | 31,938 | 31,938 |
Common Shares Outstanding | 31,938 | 31,938 |
Common Stock Value Outstanding | $32,000 | $32,000 |
Capital_Stock_Issuances_of_Com
Capital Stock - Issuances of Common Stock (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
[CommonClassAMember] | ' | ' | ' | ' |
Shares Issued Related To [Line Items] | ' | ' | ' | ' |
Directors Compensation | 0 | 0 | 0 | 242,567 |
Vesting Incentive Plan Shares | 876,640 | 0 | 892,844 | 0 |
Total Shares Issued During Period | 876,640 | 0 | 892,844 | 242,567 |
[CommonClassBMember] | ' | ' | ' | ' |
Shares Issued Related To [Line Items] | ' | ' | ' | ' |
Total Shares Issued During Period | 0 | 0 | 0 | 0 |
[CommonClassCMember] | ' | ' | ' | ' |
Shares Issued Related To [Line Items] | ' | ' | ' | ' |
Total Shares Issued During Period | 0 | 0 | 0 | 0 |
Stock_Incentive_Plans_Descript
Stock Incentive Plans - Descriptions of Plans (Details) | 9 Months Ended |
Sep. 30, 2013 | |
[LongTermIncentiveCompensationPlan2003Member] | ' |
Share Based Compensation Plans [Line Items] | ' |
Description of Plan | 'On December 18, 2003, Bimini Capital adopted the 2003 Long Term Incentive Compensation Plan (the “2003 Plan”) to provide Bimini Capital with the flexibility to use stock options and other awards as part of an overall compensation package to provide a means of performance-based compensation to attract and retain qualified personnel. The 2003 Plan was amended and restated in March 2004. Key employees, directors and consultants are eligible to be granted stock options, restricted stock, phantom shares, dividend equivalent rights and other stock-based awards under the 2003 Plan. Subject to adjustment upon certain corporate transactions or events, a maximum of 1,448,050 shares of the Class A Common Stock (but not more than 10% of the Class A Common Stock outstanding on the date of grant) may be subject to stock options, shares of restricted stock, phantom shares and dividend equivalent rights under the 2003 Plan. |
Maximum Number of Shares to Be Issued the Plan | 1,448,050 |
Percentage of Outstanding Stock Limitation | 10.00% |
[LongTermCompensationPlan2011Member] | ' |
Share Based Compensation Plans [Line Items] | ' |
Description of Plan | 'On August 12, 2011, Bimini Capital’s shareholders approved the 2011 Long Term Compensation Plan (the “2011 Plan”) to assist the Company in recruiting and retaining employees, directors and other service providers by enabling them to participate in the success of Bimini Capital and to associate their interest with those of the Company and its stockholders. After the approval of the 2011 Plan, the Board of Directors agreed that it would no longer issue awards under the 2003 Plan. The plan is intended to permit the grant of stock options, stock appreciation rights (“SARs”), stock awards, performance units and other equity-based and incentive awards. The maximum aggregate number of shares of Common Stock that may be issued under the 2011 Plan pursuant to the exercise of options and SARs, the grant of stock awards or other equity-based awards and the settlement of incentive awards and performance units is equal to 4,000,000 shares. |
Maximum Number of Shares to Be Issued the Plan | 4,000,000 |
Percentage of Outstanding Stock Limitation | 10.00% |
[Orchid2012EquityIncentivePlanMember] | ' |
Share Based Compensation Plans [Line Items] | ' |
Description of Plan | 'In October 2012, Orchid adopted the 2012 Equity Incentive Plan (the “2012 Plan”) to recruit and retain employees, directors and other service providers, including employees of Bimini Capital and other affiliates. The 2012 Plan provides for the award of stock options, stock appreciation rights, stock award, performance units, other equity-based awards (and dividend equivalents with respect to awards of performance units and other equity-based awards) and incentive awards. The 2012 Plan is administered by the Compensation Committee of Orchid’s Board of Directors except that Orchid’s full Board of Directors will administer awards made to directors who are not employees of Orchid or its affiliates. The 2012 Plan provides for awards of up to an aggregate of 10% of the issued and outstanding shares of Orchid’s common stock (on a fully diluted basis) at the time of the awards, subject to a maximum aggregate 4,000,000 shares of Orchid common stock that may be issued under the Incentive Plan. To date, no awards have been made under the Incentive Plan. |
Maximum Number of Shares to Be Issued the Plan | 4,000,000 |
Percentage of Outstanding Stock Limitation | 10.00% |
Stock_Incentive_Plans_Phantom_
Stock Incentive Plans - Phantom Share Awards (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Phantom Shares [Abstract] | ' | ' | ' | ' |
Phantom Share Expense | $238,000 | $21,000 | $279,000 | $63,000 |
Unrecognized Compensation Cost | $0 | ' | $0 | ' |
Stock_Incentive_Plans_Phantom_1
Stock Incentive Plans - Phantom Share Activity (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Phantom Share Activity, Shares | ' | ' |
Nonvested - Beginning Balance | 367,844 | 367,844 |
Granted | 525,000 | 0 |
Vested | -892,844 | 0 |
Nonvested - Ending Balance | 0 | 367,844 |
Phantom Share Activity Weighted Average Grant Date Fair Value | ' | ' |
Nonvested - Beginning Balance | $1.11 | $1.11 |
Granted | $0.23 | $0 |
Vested | $0.60 | $0 |
Nonvested - Ending Balance | $0 | $1.11 |
Stock_Incentive_Plans_Special_
Stock Incentive Plans - Special Bonus (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Special Bonus [Abstract] | ' |
Special Bonus Date | '8/13/2013 |
Total Value of Special Bonus | $167,000 |
Number of shares issued pursuant to special bonus | 525,000 |
Value of shares issued pursuant to special bonus | 122,000 |
Special bonus paid in cash | $45,000 |
Commitments_and_Contingencies_
Commitments and Contingencies - Loans Sold to Investors (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Loan Repurchase Demand Liability Rollforward [Abstract] | ' | ' | ' | ' |
Beginning Balance | ' | ' | $4,737,000 | ' |
Gains on release of loan loss reserves | -1,700,000 | 0 | -4,737,260 | 0 |
Ending Balance | $0 | ' | $0 | ' |
Income_Taxes_REIT_Activities_D
Income Taxes - REIT Activities (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2012 |
Real Estate Investment Trust Activities [Abstract] | ' |
REIT Tax Net Operating Loss Carryforward | $13.80 |
REIT Net Operating Loss Carryover Expiration | '2028 through 2032 |
Income_Taxes_Taxable_REIT_Subs
Income Taxes - Taxable REIT Subsidiaries (Details) (USD $) | 9 Months Ended | 9 Months Ended | |||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 |
[MortcoTrsLlcMember] | [MortcoTrsLlcMember] | [MortcoTrsLlcMember] | [MortcoTrsLlcMember] | [MortcoTrsLlcMember] | [BiminiAdvisorsincMember] | [BiminiAdvisorsincMember] | [BiminiAdvisorsincMember] | [BiminiAdvisorsincMember] | |
[InternalRevenueServiceIRSMember] | [InternalRevenueServiceIRSMember] | [StateAndLocalJurisdictionMember] | [InternalRevenueServiceIRSMember] | [StateAndLocalJurisdictionMember] | |||||
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Taxable Income (Loss) | $0 | $0 | ' | ' | ' | $0 | $0 | ' | ' |
Net Operating Loss Carryforwards | ' | ' | 267.5 | ' | 40 | ' | ' | 0.5 | 0.5 |
Net Deferred Tax Assets | 96.3 | ' | ' | ' | ' | ' | ' | 0.2 | ' |
Valuation Allowance | 96.3 | ' | ' | ' | ' | ' | ' | ' | ' |
LiabilityForUncertainTaxPositionsNoncurrent | ' | ' | 0 | 1.3 | ' | ' | ' | ' | ' |
Tax benefit resulting from reversal of liability related to uncertain tax position | ' | ' | $1.30 | ' | ' | ' | ' | ' | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
[CommonClassAMember] | ' | ' | ' | ' |
Net Income (Loss) Available to Common Stockholders, Diluted [Abstract] | ' | ' | ' | ' |
Net Income (Loss) Available to Common Stockholders, Basic | $1,840 | ($759) | ($723) | ($114) |
Net Income (Loss) Available to Common Stockholders, Diluted | 1,840 | -759 | -723 | -114 |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | ' | ' | ' | ' |
Shares Outstanding at the Balance Sheet Date | 11,510 | 10,329 | 11,510 | 10,329 |
Unvested Dividend Eligible Shares Outstanding at the Balance Sheet Date | 0 | 0 | 0 | 0 |
Effect of Weighting | -251 | 0 | -727 | -97 |
Weighted Average Shares - Basic | 11,259 | 10,329 | 10,783 | 10,232 |
Weighted Average Shares - Diluted | 11,259 | 10,329 | 10,783 | 10,232 |
Income (Loss) Per Share - Basic | $0.16 | ($0.07) | ($0.07) | ($0.01) |
Income (Loss) Pe Share - Diluted | $0.16 | ($0.07) | ($0.07) | ($0.01) |
[CommonClassBMember] | ' | ' | ' | ' |
Net Income (Loss) Available to Common Stockholders, Diluted [Abstract] | ' | ' | ' | ' |
Net Income (Loss) Available to Common Stockholders, Basic | 5 | -2 | -2 | 0 |
Net Income (Loss) Available to Common Stockholders, Diluted | $5 | ($2) | ($2) | $0 |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | ' | ' | ' | ' |
Shares Outstanding at the Balance Sheet Date | 32 | 32 | 32 | 32 |
Effect of Weighting | 0 | 0 | 0 | 0 |
Weighted Average Shares - Basic | 32 | 32 | 32 | 32 |
Weighted Average Shares - Diluted | 32 | 32 | 32 | 32 |
Income (Loss) Per Share - Basic | $0.16 | ($0.07) | ($0.07) | ($0.01) |
Income (Loss) Pe Share - Diluted | $0.16 | ($0.07) | ($0.07) | ($0.01) |
Assets_and_Liabilities_Recorde
Assets and Liabilities Recorded at Fair Value on Recurring Basis (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
[EstimateOfFairValueFairValueDisclosureMember] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Mortgage-backed securities | $371,341 | $168,155 |
Margin Deposit Assets Fair Value Disclosure | 2,711 | 227 |
Retained Interests | 3,399 | 3,336 |
[FairValueInputsLevel1Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Mortgage-backed securities | 0 | 0 |
Margin Deposit Assets Fair Value Disclosure | 2,711 | 227 |
Retained Interests | 0 | 0 |
[FairValueInputsLevel2Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Mortgage-backed securities | 371,341 | 168,155 |
Margin Deposit Assets Fair Value Disclosure | 0 | 0 |
Retained Interests | 0 | 0 |
[FairValueInputsLevel3Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Mortgage-backed securities | 0 | 0 |
Margin Deposit Assets Fair Value Disclosure | 0 | 0 |
Retained Interests | $3,399 | $3,336 |
Changes_in_Level_3_Assets_Meas
Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
[RetainedInterestMember] | ' | ' |
Changes in Fair Value [Line Items] | ' | ' |
Beginning Balance | $3,336 | $3,495 |
Gain (loss) Included in Earnings | 2,536 | 4,205 |
Collections | -2,473 | -3,385 |
Ending Balance | 3,399 | 4,315 |
[MortgageLoansHeldForSaleMember] | ' | ' |
Changes in Fair Value [Line Items] | ' | ' |
Beginning Balance | ' | 40 |
Gain (loss) Included in Earnings | ' | -17 |
Collections | ' | -23 |
Ending Balance | ' | $0 |
Quantitative_Information_About
Quantitative Information About Level 3 Fair Value Measurements - Prepayment Assumptions (Details) ([RetainedInterestMember]) | 9 Months Ended |
Sep. 30, 2013 | |
Prepayment Assumption [Line Items] | ' |
Prepayment Method | 'Constant Prepayment Rate |
[MaximumMember] | ' |
Prepayment Assumption [Line Items] | ' |
Prepayment Range | 10.00% |
[MinimumMember] | ' |
Prepayment Assumption [Line Items] | ' |
Prepayment Range | 10.00% |
[WeightedAverageMember] | ' |
Prepayment Assumption [Line Items] | ' |
Prepayment Range | 10.00% |
Quantitative_Information_About1
Quantitative Information About Level 3 Fair Value Measurements - Default Assumptions (Details) ([RetainedInterestMember]) | 9 Months Ended |
Sep. 30, 2013 | |
[RealEstateOwnedMember] | ' |
Default Assumptions [Line Items] | ' |
Probability of Default | 100.00% |
Range Of Loss Timining | 'Next 10 Months |
[RealEstateOwnedMember] | [MaximumMember] | ' |
Default Assumptions [Line Items] | ' |
Loss Severity Range | 66.25% |
[RealEstateOwnedMember] | [MinimumMember] | ' |
Default Assumptions [Line Items] | ' |
Loss Severity Range | 26.03% |
[RealEstateOwnedMember] | [WeightedAverageMember] | ' |
Default Assumptions [Line Items] | ' |
Loss Severity Range | 28.70% |
[LoansInForeclosureMember] | ' |
Default Assumptions [Line Items] | ' |
Probability of Default | 100.00% |
Range Of Loss Timining | ' Month 4 - 13 |
[LoansInForeclosureMember] | [MaximumMember] | ' |
Default Assumptions [Line Items] | ' |
Loss Severity Range | 66.25% |
[LoansInForeclosureMember] | [MinimumMember] | ' |
Default Assumptions [Line Items] | ' |
Loss Severity Range | 26.03% |
[LoansInForeclosureMember] | [WeightedAverageMember] | ' |
Default Assumptions [Line Items] | ' |
Loss Severity Range | 28.70% |
[Loans90DaysDelinquentMember] | ' |
Default Assumptions [Line Items] | ' |
Probability of Default | 100.00% |
Range Of Loss Timining | 'Month 11-28 |
[Loans90DaysDelinquentMember] | [MaximumMember] | ' |
Default Assumptions [Line Items] | ' |
Loss Severity Range | 45.00% |
[Loans90DaysDelinquentMember] | [MinimumMember] | ' |
Default Assumptions [Line Items] | ' |
Loss Severity Range | 45.00% |
[Loans90DaysDelinquentMember] | [WeightedAverageMember] | ' |
Default Assumptions [Line Items] | ' |
Loss Severity Range | 45.00% |
[Loans60DaysDelinquentMember] | ' |
Default Assumptions [Line Items] | ' |
Probability of Default | 85.00% |
Range Of Loss Timining | 'Month 11-28 |
[Loans60DaysDelinquentMember] | [MaximumMember] | ' |
Default Assumptions [Line Items] | ' |
Loss Severity Range | 45.00% |
[Loans60DaysDelinquentMember] | [MinimumMember] | ' |
Default Assumptions [Line Items] | ' |
Loss Severity Range | 45.00% |
[Loans60DaysDelinquentMember] | [WeightedAverageMember] | ' |
Default Assumptions [Line Items] | ' |
Loss Severity Range | 45.00% |
[Loans30DaysDelinquentMember] | ' |
Default Assumptions [Line Items] | ' |
Probability of Default | 75.00% |
Range Of Loss Timining | 'Month 11-28 |
[Loans30DaysDelinquentMember] | [MaximumMember] | ' |
Default Assumptions [Line Items] | ' |
Loss Severity Range | 45.00% |
[Loans30DaysDelinquentMember] | [MinimumMember] | ' |
Default Assumptions [Line Items] | ' |
Loss Severity Range | 45.00% |
[Loans30DaysDelinquentMember] | [WeightedAverageMember] | ' |
Default Assumptions [Line Items] | ' |
Loss Severity Range | 45.00% |
[CurrentLoansMember] | ' |
Default Assumptions [Line Items] | ' |
Range Of Loss Timining | 'Month 29 and Beyond |
[CurrentLoansMember] | [MaximumMember] | ' |
Default Assumptions [Line Items] | ' |
Probability of Default | 4.79% |
Loss Severity Range | 45.00% |
[CurrentLoansMember] | [MinimumMember] | ' |
Default Assumptions [Line Items] | ' |
Probability of Default | 3.18% |
Loss Severity Range | 45.00% |
[CurrentLoansMember] | [WeightedAverageMember] | ' |
Default Assumptions [Line Items] | ' |
Loss Severity Range | 45.00% |
Quantitative_Information_About2
Quantitative Information About Level 3 Fair Value Measurements - Cash Flow Recognition (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Cash Flow Recognition [Line Items] | ' |
Valuation Technique | 'Cash Flow Recognition |
[MaximumMember] | [NominalCashflowsMember] | ' |
Cash Flow Recognition [Line Items] | ' |
Remaining Life Range | 11.3 |
Fair Value Inputs Discount Rate | 27.50% |
[MaximumMember] | [DiscountedCashflowsMember] | ' |
Cash Flow Recognition [Line Items] | ' |
Remaining Life Range | 9.8 |
Fair Value Inputs Discount Rate | 27.50% |
[MinimumMember] | [NominalCashflowsMember] | ' |
Cash Flow Recognition [Line Items] | ' |
Remaining Life Range | 0.5 |
Fair Value Inputs Discount Rate | 27.50% |
[MinimumMember] | [DiscountedCashflowsMember] | ' |
Cash Flow Recognition [Line Items] | ' |
Remaining Life Range | 0.5 |
Fair Value Inputs Discount Rate | 27.50% |
[WeightedAverageMember] | [NominalCashflowsMember] | ' |
Cash Flow Recognition [Line Items] | ' |
Remaining Life Range | 2.5 |
Fair Value Inputs Discount Rate | 27.50% |
[WeightedAverageMember] | [DiscountedCashflowsMember] | ' |
Cash Flow Recognition [Line Items] | ' |
Remaining Life Range | 0.8 |
Fair Value Inputs Discount Rate | 27.50% |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Related Party Transaction [Line Items] | ' | ' |
Description of Transaction | 'Frank E. Jaumot is a shareholder in an accounting firm from which the Company receives accounting and tax services. Mr. Jaumot is both a director and a shareholder of Bimini Capital and a shareholder of Orchid. Orchid entered into a management agreement with Bimini Capital, which provided for an initial term through December 31, 2011 with automatic one-year extension options. The agreement was extended under the option to December 31, 2013, but was terminated at the completion of Orchid’s IPO. At the completion of the IPO, Orchid entered into a management agreement with Bimini Advisors, LLC which provides for an initial term through February 20, 2016 with automatic one-year extensions and is subject to certain termination rights. Under the terms of the management agreement, Bimini Advisors will be responsible for administering the business activities and day-to-day operations of Orchid. Bimini Advisors will receive a monthly management fee in the amount of: One-twelfth of 1.5% of the first $250 million of Orchid’s equity, as defined in the management agreement, One-twelfth of 1.25% of Orchid’s equity that is greater than $250 million and less than or equal to $500 million, and One-twelfth of 1.00% Orchid’s equity that is greater than $500 million. | ' |
[DirectorMember] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Professional Fees Paid | $82,000 | $102,000 |
Variable_Interest_Entities_Nar
Variable Interest Entities - Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Variable Interest Entity [Abstract] | ' | ' | ' | ' | ' |
Orchid Island Capital Offering Expenses | $0 | $0 | $3,042,322 | $0 | ' |
MinorityInterestOwnershipPercentageByParent | 29.38% | ' | 29.38% | ' | 100.00% |
Variable_Interest_Entities_Non
Variable Interest Entities - Noncontrolling Interest Rollforward (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Variable Interest Entity [Abstract] | ' | ' | ' | ' |
Net (Loss) Income attributable to Bimini Capital stockholders | $1,845,270 | ($761,682) | ($724,540) | ($113,912) |
Increase in Bimini Capital's paid-in capital for sale of 2,360,000 common shares of Orchid Island Capital, Inc. | ' | ' | 278,000 | ' |
Change from net loss attributable to Bimini Capital and transfers from noncontrolling interest | ' | ' | ($447,000) | ' |
Varialble_Interest_Entity_NCI_
Varialble Interest Entity - NCI (Details) (USD $) | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
[OrchidIslandCapitalIncMember] | [OrchidIslandCapitalIncMember] | |||
Noncontrolling Interest [Line Items] | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | $0 |
Issuance of common shares of Orchid Island Capital, Inc. | 35,400,000 | 0 | 35,122,000 | ' |
Net Income Attributed To Noncontrolling Interest | ' | ' | -1,235,000 | ' |
Cash Dividends Paid To Noncontrolling Interests | 2,230,199 | 0 | -2,231,000 | ' |
Ending Balance | ' | ' | $31,656,000 | ' |
Variable_Interest_Entities_VIE
Variable Interest Entities - VIE Balance Sheet (Details) ([VariableInterestEntityPrimaryBeneficiaryMember], USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
[VariableInterestEntityPrimaryBeneficiaryMember] | ' |
Mortgage Backed Securities At Fair Value [Abstract] | ' |
Pledged to counterparties | $277,982 |
Unpledged | 53,805 |
Total mortgage-backed securities | 331,787 |
Cash and cash equivalents | 7,901 |
Restricted cash Accrued interest receivable | 2,581 |
Accrued interest receivable | 1,388 |
Receivable for securities sold | 41,150 |
Prepaid expenses and other assets | 673 |
Total Assets | 385,480 |
Liabilities Abstract | ' |
Repurchase agreements | 301,657 |
Payable for unsettled securities purchased | 38,720 |
Accrued interest payable | 78 |
Accounts payable, accrued expenses and other | 121 |
Total Liabilities | $340,576 |
Variable_Interest_Entities_VIE1
Variable Interest Entities - VIE Income Statement (Details) ([VariableInterestEntityPrimaryBeneficiaryMember], USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
[VariableInterestEntityPrimaryBeneficiaryMember] | ' | ' |
Portfolio Income [Abstract] | ' | ' |
Interest income | $2,551 | $6,011 |
Interest expense | 294 | 753 |
Net interest income | 2,257 | 5,258 |
Unrealized gains on mortgage-backed securities | 86 | -8,532 |
Realized gains on mortgage-backed securities | -667 | -1,491 |
Losses on Eurodollar futures | -2,272 | 4,096 |
Net portfolio income | -596 | -669 |
Selling General And Administrative Expense [Abstract] | ' | ' |
Directors' fees and liability insurance | 83 | 207 |
Audit, legal and other professional fees | 71 | 223 |
Direct REIT operating expenses | 37 | 111 |
Other administrative | 31 | 84 |
Total expenses | 222 | 625 |
Net income | ($818) | ($1,294) |