Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2015 | Aug. 05, 2015 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | Bimini Capital Management, Inc. | |
Entity Central Index Key | 1,275,477 | |
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 | |
Trading Symbol | BMNM | |
Class A Common Stock [Member] | ||
Entity Common Stock Shares Outstanding | 12,355,045 | |
Class B Common Stock [Member] | ||
Entity Common Stock Shares Outstanding | 31,938 | |
Class C Common Stock [Member] | ||
Entity Common Stock Shares Outstanding | 31,938 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Mortgage-backed securities, at fair value | ||
Pledged to counterparties | $ 105,812,917 | $ 116,026,180 |
Unpledged | 1,948,249 | 1,804,852 |
Total mortgage-backed securities | 107,761,166 | 117,831,032 |
Cash and cash equivalents | 7,009,072 | 4,699,059 |
Restricted cash | 2,547,550 | 733,660 |
Orchid Island Capital, Inc. common stock, at fair value | 11,004,464 | 12,810,728 |
Retained interests in securitizations | 2,141,458 | 1,899,684 |
Accrued interest receivable | 440,267 | 460,326 |
Property and equipment, net | 3,537,405 | 3,584,603 |
Deferred tax assets, net | 1,428,754 | 1,900,064 |
Other assets | 2,652,616 | 2,960,042 |
Total Assets | 138,522,752 | 146,879,198 |
Liabilities | ||
Repurchase agreements | 101,205,930 | 109,963,995 |
Junior subordinated notes due to Bimini Capital Trust II | 26,804,440 | 26,804,440 |
Accrued interest payable | 89,111 | 94,397 |
Other Liabilities | 4,065,873 | 814,597 |
Total Liabilities | 132,165,354 | 137,677,429 |
Stockholders' Equity | ||
Preferred stock | 0 | 0 |
Common stock | 12,410 | 12,388 |
Additional paid in capital | 334,571,864 | 334,522,850 |
Accumulated deficit | (328,226,876) | (325,333,469) |
Stockholders Equity | 6,357,398 | 9,201,769 |
Total Liabilities and Stockholders' Equity | $ 138,522,752 | $ 146,879,198 |
Consolidated Statements of Oper
Consolidated Statements of Operations - Entity [Domain] - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Portfolio Income | ||||
Interest income | $ 1,074,122 | $ 7,119,482 | $ 2,281,256 | $ 11,235,494 |
Interest expense | 98,142 | 728,277 | 198,334 | 1,182,616 |
Net interest income, before interest on junior subordinated notes | 975,980 | 6,391,205 | 2,082,922 | 10,052,878 |
Interest expense on junior subordinated notes | 247,988 | 245,334 | 491,461 | 488,517 |
Net interest income | 727,992 | 6,145,871 | 1,591,461 | 9,564,361 |
Unrealized (losses) gains on mortgage-backed securities | (1,026,695) | 9,698,117 | (197,399) | 11,266,428 |
Realized gains on mortgage-backed securities | 0 | 2,980,121 | 0 | 4,049,477 |
(Losses) gains on derivative instruments | 5,625 | (5,873,958) | (1,009,075) | (7,590,975) |
Net portfolio income (loss) | (293,078) | 12,950,151 | 384,987 | 17,289,291 |
Other income: | ||||
Gains on retained interests in securitizations | 1,052,824 | 2,252,897 | 2,538,580 | 2,446,586 |
Unrealized losses on Orchid Island Capital, Inc. common stock | (1,992,780) | 0 | (1,806,264) | 0 |
Orchid Island Capital, Inc. dividends | 530,099 | 0 | 1,060,198 | 0 |
Management fees | 1,013,900 | 0 | 1,868,700 | 0 |
Other expense, net | (10,174) | (10,125) | (22,153) | (20,253) |
Total other income | 593,869 | 2,242,772 | 3,639,061 | 2,426,333 |
Expenses | ||||
Compensation and related benefits | 594,653 | 911,134 | 1,263,444 | 1,357,307 |
Directors fees and liability insurance | 174,937 | 302,950 | 342,703 | 543,512 |
Audit, legal and other professional fees | 712,674 | 688,541 | 1,047,451 | 1,088,791 |
Direct REIT operating expenses | 18,055 | 114,133 | 36,858 | 229,316 |
Settlement of litigation | 3,500,000 | 0 | ||
Other administrative expenses | 33,735 | 236,354 | 118,688 | 391,075 |
Total expenses | 1,534,054 | 2,253,112 | 6,309,144 | 3,610,001 |
Net (loss) income before income tax provision (benefit) | (1,233,263) | 12,939,811 | (2,285,096) | 16,105,623 |
Income tax provision (benefit) | 271,216 | 25,601 | 608,311 | (2,131,758) |
Net (loss) income | (1,504,479) | 12,914,210 | (2,893,407) | 18,237,381 |
Less: income attributable to noncontrolling interests | 0 | 9,584,234 | 0 | 12,538,193 |
Net (Loss) Income attributable to Bimini Capital stockholders | $ (1,504,479) | $ 3,329,976 | $ (2,893,407) | $ 5,699,188 |
Class A Common Stock [Member] | ||||
Basic and Diluted Net (Loss) Income Per Share of: | ||||
Basic | $ (0.12) | $ 0.27 | $ (0.23) | $ 0.47 |
Diluted | $ (0.12) | $ 0.27 | $ (0.23) | $ 0.47 |
Weighted Average Shares Outstanding | ||||
Weighted Average Number Of Basic Shares Outstanding | 12,346,224 | 12,294,879 | 12,339,358 | 12,071,977 |
Weighted Average Number Of Diluted Shares Outstanding | 12,346,224 | 12,294,879 | 12,339,358 | 12,071,977 |
Class B Common Stock [Member] | ||||
Basic and Diluted Net (Loss) Income Per Share of: | ||||
Basic | $ (0.12) | $ 0.27 | $ (0.23) | $ 0.47 |
Diluted | $ (0.12) | $ 0.27 | $ (0.23) | $ 0.47 |
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 Stock
Consolidated Statement of Stockholders' Equity - 6 months ended Jun. 30, 2015 - USD ($) | Total | Common Stock [Member] | Additional Paid In Capital [Member] | Retained Earnings [Member] |
Beginning Balances at Dec. 31, 2014 | $ 9,201,769 | $ 12,388 | $ 334,522,850 | $ (325,333,469) |
Increase (Decrease) in Stockholders' Equity | ||||
Net income | (2,893,407) | 0 | 0 | (2,893,407) |
Issuance of Class A common shares for equity plan exercises | 39,691 | 22 | 39,669 | 0 |
Amortization of equity plan compensation | 9,345 | 0 | 9,345 | 0 |
Ending Balances at Jun. 30, 2015 | $ 6,357,398 | $ 12,410 | $ 334,571,864 | $ (328,226,876) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net (loss) income | $ (2,893,407) | $ 18,237,381 |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | ||
Stock based compensation | 49,036 | 221,498 |
Depreciation | 47,198 | 54,629 |
Deferred income tax provision (benefit) | 471,310 | (2,154,025) |
Losses (gains) on mortgage-backed securities | 197,399 | (15,315,905) |
Gains on retained interests in securitizations | (2,538,580) | (2,446,586) |
Unrealized losses on Orchid Island Capital, Inc. common stock | (1,806,264) | 0 |
Realized and unrealized losses on interest rate swaptions | 0 | (1,285,300) |
Changes in operating assets and liabilities | ||
Accrued interest receivable | 20,059 | (2,368,595) |
Other assets | 307,426 | (239,673) |
Accrued interest payable | (5,286) | 218,451 |
Other liabilities | 3,251,276 | 245,850 |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 712,695 | (2,261,675) |
From mortgage-backed securities investments | ||
Purchases | (986,194) | (1,003,577,756) |
Sales | 0 | 434,601,973 |
Principal repayments | 10,858,661 | 28,820,992 |
Payments received on retained interests in securitizations | 2,296,806 | 1,842,410 |
Increase in restricted cash | (1,813,890) | (1,435,035) |
Purchases of property and equipment | 0 | (34,550) |
Purchase of interest rate swaptions, net of margin cash received | 0 | 1,219,000 |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | 10,355,383 | (541,000,966) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from repurchase agreements | 451,679,644 | 3,523,211,129 |
Principal payments on repurchase agreements | (460,437,709) | (3,022,580,809) |
Issuance of common shares of Orchid Island Capital, Inc. | 0 | 75,115,922 |
Cash dividends paid to noncontrolling interests | 0 | 7,378,350 |
Class A common shares sold directly to employees | 0 | (98,000) |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (8,758,065) | 568,465,892 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 2,310,013 | 25,203,251 |
CASH AND CASH EQUIVALENTS, beginning of the period | 4,699,059 | 11,959,292 |
CASH AND CASH EQUIVALENTS, end of the period | 7,009,072 | 37,162,543 |
Cash paid during the period for: | ||
Interest | 695,081 | 1,452,682 |
Income Taxes | 137,001 | 22,267 |
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Securities acquisitions settled in later period | $ 0 | $ 6,825,538 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [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 leas t 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. 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. Since Orchid’s IPO and until December 31, 2014, Orchid was consolidated as a variable interest entity (“VIE”). Effective December 31, 2014, Orchid was deconsolidated. As used in this document, discussions related to REIT qualifying activities include the MBS portfolios of both Bimini Capital and Orchid for 20 14, and only the MBS portfolio of Bimini Capital for 2015. Discussions related to the “Company” refer to the consolidated entity, including Bimini Capital, our wholly-owned subsidiaries, and, through December 31, 2014, our VIE. References to “Bimini Capit al” and the “parent” refer to Bimini Capital Management, Inc. as a separate entity. 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 Advisor s, LLC (together “Bimini Advisors”), and MortCo TRS, LLC and its consolidated subsidiaries (“MortCo”) . Consolidation The accompanying consolidated financial statements include the accounts of Bimini Capital, Bimini Advisors and MortCo. The accounts of Orchid are included in the consolidated statements of operations for the six and three months ended June 30, 2014 , and in the statement of cash flows for the six months ended June 30, 2014 . All inter-company accounts and transactions have been eliminated from the consolidated financial statements. Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) T opic 810, Consolidation , requires the consolidat ion of a VIE by an enterprise if it is deemed the pr imary beneficiary of the VIE. Further, ASC 810 requires a qualitative assessment to determine the primary beneficiary of a VIE , an ongoing assessment of whether an enterprise is the primary beneficiary of a VIE , and additional disclosures for entities that have variable interests in VIEs . From the effective date of Orchid’s IPO and until December 31, 2014, management concluded , pursuant to ASC 810, that Orchid wa s a VIE. As a result, subsequent to Orchid’s IPO and until December 31, 2014, the Company conso lidated Orchid in its financial statements. The results of operations of Orchid were included in the Company’s 2014 c onsolidated s tatements of operations and cash flows, however, net income attributable to Bimini Capital stockholders d id not include the portion of net income attributable to noncontrolling interests. In December 2014, management re-evaluated the conditions resulting in the consolidation of Orchid and concluded that, due to Bimini’s decreased percentage ownership interest in Orchid, t here was no longer a variable interest requiring consolidation . As a result, in accordance with ASC 810, the Company deconsolidated Orchid from the consolidated balance sheet as of December 31, 2014. However, as a VIE which was deconsolidated on December 31, 2014, Orchid’s results of operations were included in the consolidated statements of operations and cash flows through December 31, 2014, and are excluded in subsequent periods . Assets recognized as a result of consolidating Orchid in pri or periods did not represent additional assets that could be used to satisfy claims against Bimini Capital’s assts. Conversely, liabilities recognized as a result of consolidating Orchid did not represent additional claims on Bimini Capital’s assets; rath er, they represented 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 7, Bimini Capital has a common share investment in a trust used in connectio n 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 bee n accounted for on the equity method. Liquidity I n 2006 and 2007 , there were significant losses incurred which were attributable to the former mortgage origination operations of MortCo . These losses significantly reduced Bimini Capital’s equity capital base and the size of its MBS portfolio when compared to pre-2006 levels. This caused the Company’s overhead to be high in relation to its portfolio size. The smaller capital base made it difficult to g enerate sufficient net interest income to cover expenses. Beginning in 2007, the Company began a series of actions to respond to the losses and their impact on our capital base. One of these actions was to evaluate and pursue capital raising opportunitie s for Orchid. Orchid completed its initial public offering of common stock on February 20, 2013. In accordance with the management agreement between Bimini Advisors and Orchid, Bimini Advisors receives fees for managing the MBS portfolio of Orchid, and certain overhead costs are allocated to Orchid on a pro rata basis commencing on July 1, 2014. As a stockholder of Orchid, Bimini Capital will share in distributions when paid by Orchid to its stockholders. These actions improved the Company’s liquidity outlook. At June 30, 2015 , the Company had cash and cash equivalents of approximately $7.0 million, an MBS portfolio of approximately $107.8 million and an equity capital base of approximately $6.4 million. The Company generat ed cash flows of approximately $13.2 million from principal and interest payments on its MBS portfolio and approximately $2.3 million from retained interests in securitizations during the six months ended June 30, 2015 . In add ition, during the six months ended June 30, 2015 , the Company received approximately $2.3 million in management fees and expense reimbursements as manager of Orchid and approximately $1.1 in dividends from its investment in Or chid common shares . However, if cash resources are, at any time, insufficient to satisfy the Company’s liquidity requirements, such as when cash flows from operations are materially negative, the Company may be required to pledge additional assets to me et margin calls, liquidate assets, sell additional debt or equity securities or pursue other financing alternatives. In May 2015, Bimini Capital agreed to settle a legal action as more fully described in Note 10. In connection with the settlement and in accordance with GAAP, a loss of $3.5 million has been charged to operations for the six months ended June 30, 2015 . Although payments under the settlement agreement will reduce the Company’s liquidity, management believes that the Company will be a ble to generate sufficient cash from its operations to meet the payment obligations as they come due. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results fo r the six and three month periods ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year end ing December 31, 2015 . The consolidated balance sheet at December 31, 2014 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete consolidated financial statements. For further information, refer to the financial statements and footnotes thereto included in the Company’s A nnual R eport on Form 10-K for the year ended December 31, 2014 . 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 a nd 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 consolidated financial statements include the fair values of MBS, investment in Orchid common shares, Eurodollar futures contracts, interest rate swaptions, retained interests, asset valuation allowances and deferred tax allowances. Statement of Comprehensive (Loss) Income In accordance with ASC Topic 220, Comprehensive Income , a statement of comprehensive (loss) income has not been included as the Company has no items of other comprehensive income (loss) . Comprehensive (loss) income is the same as net (loss) income f or 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 at the time of purchase. At June 30, 2015 , restricted cash consisted of approximately $0.5 million of cash held by a broker as margin on Eurodollar futures contracts and $2.1 million of cash held on deposit as collateral with repurchase agreement counterpartie s. At December 31, 2014 , restricted cash consisted of approximately $0.5 million of cash held by a broker as margin on Eurodollar futures contracts and $0.3 million of cash held on deposit as collateral with repurchase agreement counterparties . The Company maintains cash balances at four banks, and , at times, balances may exceed federally insured limits. The Company has not experienced any losses related to these ba lances. The Federal Deposit Insurance Corporation insures eligible accounts up to $250,000 per depositor at each financial institution. At June 30, 2015 , the Company’s cash deposits exceeded federally insured limits by approximately $6.0 million. R estricted cash balances are uninsured, but are held in separate customer accounts that are segregated from the general funds of the counterparty. The Company limits uninsured balances to only large, well-known bank s and derivative counterparties and belie ves that it is not exposed to 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 mor tgage 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”). The Company has elected to account for its investment in MBS under the fair value option. Electing the fair value option requires the Company to record changes in fair value in the consolidated statement of operations, which, in management’s view, more appropriately reflects the results of our operations for a particular rep orting 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 securit ies 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 ASC Topic 820, Fair Value Measurement . The definition of fair value in 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 independent pricing sources and/or third-party broker quotes, 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. Premium lost and discount accretion resulting from monthly principal repayments are reflected in unrealize d gains (losses) on MBS in the c ons olidated statements of operations. 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 inde x 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. The amount reported as unrealized gains or losses on mortgage backed securities thus captures the net effect of changes in the fair market value of securities caused by market developments and any premium or discount lost as a result of principal repayments du ring the period. Orchid Island Capital, Inc. Common Stock At the date of Orchid’s deconsolidation, the Company elected the fair value option for its continuing investment in Orchid common shares. The change in the fair value of this investment and dividends received on this investment are reflected in other income in the c onsolidated statements of operations for the six and three months ended June 30, 2015 . We estimate the fair value of our investment in Orchid on a market approach using “Level 1” inputs based on the quoted market price of Orchid’s common stock. Electing the fair value option requires the Company to record changes in fair value in the consolidated statement s of operations, which, in management’s view, more appropriately reflects the results of our operations for a particular reporting period and is consistent with how the investment is managed. Retained Interests in Securitizations From 2004 to 2006, 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 ref lected 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 uses derivative instruments to manage interest rate risk, facilitate asset/liabil ity strategies and manage other exposures, and it may continue to do so in the future. The principal instruments that the Company has used to date are Eurodollar futures contracts and options to enter in interest rate swaps (“i nterest rate swaptions”), but it may enter into other transactions in the future. The Company has elected to not treat any of its derivative financ ial instruments as hedges in order to align the accounting treatment of its derivative instruments with the treatment of its portfolio assets under the fair value option. FASB ASC Topic 815, Derivatives and Hedging , requires that all derivative instrument s be carried at fair value. Changes in fair value are recorded in earnings for each period. Holding derivatives creates exposure to credit risk related to the potential for failure on the part of counterparties to honor their commitments. In addition, t he Company may be required to post collateral based on any declines in the market value of the derivatives. In the event of default by a counterparty, the Company may have difficulty recovering its collateral and may not receive payments provided for unde r the terms of the agreement. To mitigate this risk, the Company uses well-established commercial banks as counterparties. Financial Instruments 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, Orchid Island Capital, Inc. common stock, Eurodollar futures contracts, interest rate swaptions and retained interests in secu ritization 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 13 of the consolidated financial statements. The estimated fa ir value of cash and cash equivalents, restricted cash, accrued interest receivable, other assets, repurchase agreements, accrued interest payable and other liabilities generally approximates their carrying value as of June 30, 2015 and December 31, 2014 , 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 ascer tain 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 7 to the consolidated financial st atements. 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. Repurchase Agreements The Company finance s 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 account s 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 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 dividends are 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 recorde d 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 ASC Topic 260, Earnings Pe r Share , which requires companies with complex capital structures, common stock equivalents or two (or more) classes of securities that participate in dividend distributions to present both basic and diluted earnings per share (“EPS”) on the face of the co nsolidated 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 treasury stock or two-class me thod, as applicable 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 right s. 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. 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”). 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 June 30, 2015 , management believes that the Company has complied with the Code requirements an d Bimini Capital continues to qualify as a REIT. As further described in Note 11, Income Taxes, Bimini Advisors and MortC o are taxpaying entit ies for income tax purposes and are taxed separately from Bimini Capital . The Company’s U.S. federal income ta x returns for years end ed on or after December 31, 20 11 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 material ly 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 ASC Topic 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 June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-12, Compensation-Stock Compensation: Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Ac hieved after the Requisite Service Period . ASU 2014-12 requires that performance targets that affect vesting and that could be achieved after the requisite service period be treated as performance conditions. The effective date of ASU 2014-12 is for inter im and annual reporting periods beginning after December 15, 2015. The ASU is not expected to materially impact the Company’s consolidated financial statements. In June 2014, the FASB issued ASU 2014-11, Transfers and Servicing (Topic 860): Repurchase-to -Maturity Transactions, Repurchase Financings, and Disclosures . ASU 2014-11 amends the accounting guidance for repurchase-to-maturity transactions and repurchase agreements executed as repurchase financings, and requires additional disclosure about certain transactions by the transferor. ASU 2014-11 is effective for certain transactions that qualify for sales treatment for the first interim or annual period beginning after December 15, 2014. The new disclosure requirements for repurchase agreements, securit ies lending transactions and repurchase-to-maturity transactions that qualify for secured borrowing treatment is effective for annual periods beginning after December 15, 2014 and for interim periods beginning after March 15, 2015. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. |
Mortgage Backed Securities
Mortgage Backed Securities | 6 Months Ended |
Jun. 30, 2015 | |
Mortgage Backed Securities [Abstract] | |
Mortgage-Backed Securities | NOTE 2 . MORTGAGE-BACKED SECURITIES The following table presents the Company’s MBS portfolio as of June 30, 2015 and December 31, 2014 : (in thousands) June 30, 2015 December 31, 2014 Pass-Through MBS: Hybrid Adjustable-rate Mortgages $ 121 $ 442 Fixed-rate Mortgages 101,160 112,174 Total Pass-Through MBS 101,281 112,616 Structured MBS: Interest-Only Securities 3,345 2,276 Inverse Interest-Only Securities 3,135 2,939 Total Structured MBS 6,480 5,215 Total $ 107,761 $ 117,831 The following table summarizes the Company’s MBS portfolio as of June 30, 2015 and December 31, 2014 , 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 payme nts of principal, and prepayments of principal. (in thousands) June 30, 2015 December 31, 2014 Greater than five years and less than ten years $ 10 $ 16 Greater than or equal to ten years 107,751 117,815 Total $ 107,761 $ 117,831 |
Retained Interests In Securitiz
Retained Interests In Securitizations | 6 Months Ended |
Jun. 30, 2015 | |
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 re tained interests in asset backed securities as of June 30, 2015 and December 31, 2014 : (in thousands) Series Issue Date June 30, 2015 December 31, 2014 HMAC 2004-2 May 10, 2004 $ 216 $ 320 HMAC 2004-3 June 30, 2004 694 753 HMAC 2004-4 August 16, 2004 368 496 HMAC 2004-5 September 28, 2004 386 331 HMAC 2004-6 November 17, 2004 477 - Total $ 2,141 $ 1,900 |
Repurchase Agreements
Repurchase Agreements | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Repurchase Agreements [Abstract] | |
Repurchase Agreements | NOTE 4 . REPURCHASE AGREEMENTS As of June 30, 2015 , the Company had outstanding repurchase agreement obligations of approximately $101.2 million with a net weighted average borrowing rate of 0.39% . These agreements were collateralized by MBS with a fair value, including accrued interest, of approximately $106.2 million, and cash pledged to counterparties of approximately $2.1 million . As of December 31, 2014 , the Company had out standing repurchase agreement obligations of approximately $110.0 million with a net weighted average borrowing rate of 0.36% . These agreements were collateralized by MBS with a fair value , including accrued interest, of approximately $116.4 million , and cash pledged to count erparties of approximately $0.3 million. As of June 30, 2015 and December 31, 2014 , the Company’s repurchase agreements had remaining maturities as summarized below: ($ in thousands) OVERNIGHT BETWEEN 2 BETWEEN 31 GREATER (1 DAY OR AND AND THAN LESS) 30 DAYS 90 DAYS 90 DAYS TOTAL June 30, 2015 Fair value of securities pledged, including accrued interest receivable $ - $ 87,826 $ 18,377 $ - $ 106,203 Repurchase agreement liabilities associated with these securities $ - $ 84,939 $ 16,267 $ - $ 101,206 Net weighted average borrowing rate - 0.38% 0.43% - 0.39% December 31, 2014 Fair value of securities pledged, including accrued interest receivable $ - $ 114,433 $ 1,998 $ - $ 116,431 Repurchase agreement liabilities associated with these securities $ - $ 108,074 $ 1,890 $ - $ 109,964 Net weighted average borrowing rate - 0.36% 0.33% - 0.36% If, during the term of a repurchase agreement, a lender file s 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 recei vable , and cash posted by the Company as collateral, if any. At June 30, 2015 and December 31, 2014 , the Company had an aggregate amount at risk (the difference between the amount loaned to the Company, including interest payable, and the fair value of securities and cash pledged (if any), including accrued interest on such securities) with all counterparties of approximately $7.0 million and $6.7 million, respectively. Summary information regarding amoun ts at risk with individual counterparties greater than 10 % of stockholders’ equity at June 30, 2015 and December 31, 2014 is as follows: ($ in thousands) % of Weighted Stockholders' Average Amount Equity Maturity Repurchase Agreement Counterparties at Risk at Risk (in Days) June 30, 2015 Citigroup Global Markets, Inc. $ 2,532 39.8% 14 JVB Financial Group, LLC 1,517 23.9% 10 ED&F Man Capital Markets Inc. 1,465 23.0% 33 South Street Securities, LLC 812 12.8% 20 CRT Capital Group, LLC 685 10.8% 15 December 31, 2014 JVB Financial Group, LLC $ 1,807 19.6% 8 ED&F Man Capital Markets Inc. 1,490 16.2% 22 |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
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 the cost of its repurchase agreement funding and junior subordinated notes by entering into derivative s, such as Eurodollar f utures contracts and interest rate swaptions, but may enter into other contracts in the future . The Company has not elected hedging treatment under GAAP, and as such all gains or losses (realiz ed and unrealized) on these instruments are reflected in earnings for all periods presented. As of June 30, 2015 and December 31, 2014 , such instruments were comprised entirely of Eurodollar futures contracts . Eurodollar futures are cash settled futures contracts on an interest rate, with gains or losses credited or charged to the Company’s account on a daily basis and reflected in earnings as they occur. A minimum balance, or “margin”, is required to be maintained in the account on a daily basis. The Co mpany is exposed to the changes in value of the futures by the amount of margin held by the broker. This margin represents the collateral the Company has posted for its open positions and is recorded on the consolidated balance sheets as part of restricte d cash. During the six months ended June 30, 2014 , the Company , through Orchid, was a party to interest rate swaption agreement s which granted the Company the right but not the obligation to enter into underlying pay fixed interest rate swap (“paye r swaption”). The Company may also enter into swaption agreements that provide the Company the option to enter into a receive fixed interest rate swap (“receiver swaption”). The tables below present information related to the Company’s Eurodollar futures positions at June 30, 2015 and December 31, 2014 . ($ in thousands) As of June 30, 2015 Repurchase Agreement Funding Hedges Average Weighted Weighted Contract Average Average Notional Entry Effective Open Expiration Year Amount Rate Rate Equity (1) 2015 $ 43,000 0.79% 0.48% $ (67) 2016 56,000 1.45% 1.04% (231) 2017 56,000 2.23% 1.81% (239) 2018 56,000 2.65% 2.23% (118) Total / Weighted Average $ 53,833 1.84% 1.44% $ (655) ($ in thousands) As of June 30, 2015 Junior Subordinated Debt Funding Hedges Average Weighted Weighted Contract Average Average Notional Entry Effective Open Expiration Year Amount Rate Rate Equity (1) 2015 $ 26,000 1.65% 0.45% $ (156) 2016 26,000 1.77% 1.04% (189) 2017 26,000 2.49% 1.81% (177) 2018 26,000 2.94% 2.23% (93) Total / Weighted Average $ 26,000 2.18% 1.39% $ (615) ($ in thousands) As of December 31, 2014 Repurchase Agreement Funding Hedges Average Weighted Weighted Contract Average Average Notional Entry Effective Open Expiration Year Amount Rate Rate Equity (1) 2015 $ 36,500 0.65% 0.63% $ (5) 2016 56,000 1.45% 1.54% 46 2017 56,000 2.23% 2.23% (3) 2018 56,000 2.65% 2.51% (38) Total / Weighted Average $ 50,429 1.72% 1.72% $ - ($ in thousands) As of December 31, 2014 Junior Subordinated Debt Funding Hedges Average Weighted Weighted Contract Average Average Notional Entry Effective Open Expiration Year Amount Rate Rate Equity (1) 2015 $ 26,000 1.48% 0.57% $ (237) 2016 26,000 1.77% 1.54% (61) 2017 26,000 2.49% 2.23% (67) 2018 26,000 2.94% 2.51% (56) Total / Weighted Average $ 26,000 2.06% 1.60% $ (421) Open equity represents the cumulative gains (losses) recorded on open futures positions from inception. Loss (Gain) From Derivative Instruments, Net The table below presents the effect of the Company’s derivative financial instruments on the consolidated statements of operations for the six and three months ended June 30, 2015 and 2014 (in thousands) Consolidated Parent-Only Six Months Ended June 30, 2015 2014 2015 2014 Eurodollar futures contracts (short positions) $ (1,009) $ (6,306) $ (1,009) $ (170) Payer swaptions - (1,285) - - Net losses on derivative instruments $ (1,009) $ (7,591) $ (1,009) $ (170) (in thousands) Consolidated Parent-Only Three Months Ended June 30, 2015 2014 2015 2014 Eurodollar futures contracts (short positions) $ 6 $ (4,745) $ 6 $ (146) Payer swaptions - (1,129) - - Net gains (losses) on derivative instruments $ 6 $ (5,874) $ 6 $ (146) Credit Risk-Related Contingent Features The use of derivatives creates exposure to credit risk relating to potential losses that could be recognized in the event that the counterparties to these instruments fail to perform their obligations under the contracts. We attempt to minimize this risk by limiting our counterparties for instruments which are not centrally cleared on a registered exchange to major financial institutions with acceptable credit ratings and monitoring positions with individual counterparties. In addition, we may be required to pledge assets as collateral for our derivatives, whose amounts vary over time based on the market value, notional amount and remaining term of the derivative contract. In the event of a default by a counterparty, we may not receive payments provided for under the terms of our derivative agreements, and may have difficulty obtaining our assets pledged as collateral for our derivatives. The cash and cash equivalents pledged as collateral for our derivative instruments are i ncluded in restricted cash on our consolidated balance sheets. |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Offsetting [Abstract] | |
Offsetting Assets And Liabilities [Text Block] | NOTE 6 . OFFSETTING ASSETS AND LIABILITIES The Company’s derivatives and repurchase agreements are subject to underlying agreements with master netting or similar arrangements, which provide for the right of offset in the event of default or in the event of bankruptcy of either party to the transactions. The Company reports its assets and liabilities subject to these arrangements on a gross basis. The following table presents information regarding those assets and liabilities subject to such arra ngements as if the Company had presented them on a net basis as of June 30, 2015 and December 31, 2014 . (in thousands) Offsetting of Liabilities Gross Amount Not Offset in the Net Amount Consolidated Balance Sheet Gross Amount of Liabilities Financial Gross Amount Offset in the Presented in the Instruments Cash of Recognized Consolidated Consolidated Posted as Posted as Net Liabilities Balance Sheet Balance Sheet Collateral Collateral Amount June 30, 2015 Repurchase Agreements $ 101,206 $ - $ 101,206 $ (99,146) $ (2,060) $ - December 31, 2014 Repurchase Agreements $ 109,964 $ - $ 109,964 $ (109,706) $ (258) $ - The amounts disclosed for collateral received by or posted to the same counterparty are limited to the amount sufficient to reduce the asset or liability presented in the consolidated balance sheet to zero in accordance with ASU No. 2011-11, as amended by ASU No. 2013-01. The fair value of the actual collateral received by or posted to the same counterparty typically exceeds the amounts presented. See Notes 4 and 5 for a disc ussion of collateral posted for, or received against, repurchase obligations and derivative instruments. |
Trust Preferred Securities
Trust Preferred Securities | 6 Months Ended |
Jun. 30, 2015 | |
Trust Preferred Securities [Abstract] | |
Trust Preferred Securities | NOTE 7 . 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 eq uity 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 June 30, 2015 and December 31, 2014 , 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 June 30, 2015 , the interest rate was 3.79% . The BCTII trust preferred securities and Bimini Capital's BCTII Junior Subordinated Notes require quarterly interest distributions and became 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. BCTII is a VIE because the holders of the equity investment at risk do not have adequate decision making ability over BCTII’s activities. Since Bimini Capital's investment in BCTII’s common equity securities was financed directly by BCTII 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 inte rest, Bimini Capital is not the primary beneficiary of BCTII. Therefore, Bimini Capital has not consolidated the financial statements of BCTII into its consolidated financial statements. The accompanying consolidated financial statements present Bimini Ca pital's BCTII Junior Subordinated Notes issued to BCTII as a liability and Bimini Capital's investment in the common equity securities of BCTII as an asset (included in other assets). For financial statement purposes, Bimini Capital records payments of in terest on the Junior Subordinated Notes issued to BCTII as interest expense. |
Capital Stock
Capital Stock | 6 Months Ended |
Jun. 30, 2015 | |
Capital Stock [Abstract] | |
Capital Stock | NOTE 8. COMMON STOCK At June 30, 2015 and December 31, 2014 , Bimini Capital’s common stock is comprised of the following: June 30, 2015 December 31, 2014 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 June 30, 2015 and December 31, 2014 $ - $ - Class A Common Stock, $0.001 par value; 98,000,000 shares designated: 12,346,376 shares issued and outstanding as of June 30, 2015 and 12,324,391 shares issued and outstanding as of December 31, 2014 12,346 12,324 Class B Common Stock, $0.001 par value; 1,000,000 shares designated, 31,938 shares issued and outstanding as of June 30, 2015 and December 31, 2014 32 32 Class C Common Stock, $0.001 par value; 1,000,000 shares designated, 31,938 shares issued and outstanding as of June 30, 2015 and December 31, 2014 32 32 $ 12,410 $ 12,388 Issuances of Common Stock The table below presents information related to the Bimini Capital’s Class A Common Stock issued during the six months ended June 30, 2015 and 2014 . Shares Issued Related To: 2015 2014 Directors' compensation 21,985 27,531 Vesting incentive plan shares (1) - 500,000 Shares sold directly to employees (1) - 257,895 Total shares of Class A Common Stock issued 21,985 785,426 See Note 9, Stock Incentive Plans, for details of these issuances . There were no issuances of Bimini Capital 's Class B Common Stock and Class C Common Stock during the six months ended June 30, 2015 and 2014 . |
Stock Incentive Plans
Stock Incentive Plans | 6 Months Ended |
Jun. 30, 2015 | |
Employee Benefits And Share Based Compensation [Abstract] | |
Stock incentive Plans | NOTE 9 . STOCK INCENTIVE PLANS 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 interests with those of the Company and its stockholders. The 2011 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 aw ards and the settlement of incentive awards and performance units is equal to 4,000,000 shares. Share Awards In February 201 4 , the Compensation Committee of the Board of Directors of Bimini Capital (the “Committee”) approved certain performance bonuses for members of management. These bonuses were awarded primarily in recognition of management’s capital raising efforts in 2013. The bonuses, which were paid on February 1 9, 2014 (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 received bonuses totaling approximately $422,000, consisting of 500 ,000 shares of the Company’s common stock with an approximate value of $190,000, and cash of approximately $232,000 which, at the officer’s election, could be used to purchase newly issued shares directly f rom the Company. Under this election, the officers purchased 257,895 shares of the Company’s common stock. 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 Bon us Date. The expense related to this bonus was accrued at December 31, 2013 and d oes not affect the results of operations for the six and three months ended June 30, 2014 . A summary of share award activity during the six months ended June 30, 2014 is presented below: Weighted- Average Grant-Date Shares Fair Value Fully vested shares granted 500,000 $ 0.38 P erformance Units The Committee may issue Performance Units under the 2011 Plan to certain officers and employees. “ Performance Units” represent the participant’s right to receive an amount, based on the value of a specified number of shares of Common Stock, if the terms and conditions prescribed by the Committee are satisfied. The Committee will determine the requirem ents that must be satisfied before Performance Units are earned, including but not limited to any applicable performance period and performance goals. Performance goals may relate to the Company’s financial performance or the participant’s performance or such other criteria determined by the Committee, including goals stated with reference to the performance measures discussed below. If Performance Units are earned, they will be settled in cash, shares of Common Stock or a combination thereof. The follow ing table presents information related to Performance Units outstanding at June 30, 2015 and December 31, 2014 : June 30, 2015 December 31, 2014 Nonvested performance units outstanding at period end 31,500 31,500 Weighted-average grant date fair price $ 1.78 $ 1.78 Unrecognized compensation expense at period end $ 45,946 $ 55,291 Weighted-average remaining vesting term (in years) 2.50 3.00 Intrinsic value of unvested shares at period end $ 88,200 $ 59,850 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | NOTE 10 . COMMITMENTS AND CONTINGENCIES Litigation The Company may from time to time be involved in various lawsuits and claims, both pending and threatened, 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, as well as the costs to defend them, is inherently unpredictable, and management may choose to settle certain matters based on a cost-benefit analysis. 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, ag ainst Bimini Capital, the Bank of New York Mellon (“BNY Mellon”) and Hexagon Securities LLC (“Hexagon”) and nominal defendants BNY Mellon and Preferred Term Securities XX, Ltd. (“PreTSL XX”), captioned Hildene Capital Management, LLC, et al. v. The Bank of New York Mellon, et. al. The complaint, filed by Hildene Capital Management, LLC and Hildene Opportunities Fund, Ltd. (“Hildene”), alleged that Hildene suffered losses as a result of Bimini Capital’s repurchase of all outstanding fixed/floating rate capi tal securities of Bimini Capital Trust II for less than par value from PreTSL XX in October 2009. Hildene alleged claims against BNY Mellon for breach of the Indenture, breach of fiduciary duties and breach of the 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.” Hildene also alleged derivative claims brought in the name of Nominal Defendant BNY Mell on. (Subsequently, Hexagon and Nominal Defendant PreTSL XX were voluntarily dismissed without prejudice by Hildene.) PreTSL XX, Ltd. moved to intervene as an additional plaintiff in the action, and Bimini and BNY Mellon opposed that motion. The court gr anted PreTSL XX, Ltd.’s motion to intervene and the Appellate Division, First Department affirmed that decision. In May 2013, Hildene voluntarily dismissed its purported derivative claims brought in the name of BNY Mellon, including its claim for “resciss ion/illegality.” On April 14, 2014 and May 18, 2014, Stipulations of Partial Discontinuance were filed with the court that dismissed all claims between and among Hildene and BNY Mellon, and PreTSL XX and BNY Mellon. On May 15, 2015, Hildene and Bimini Capital agreed to settle the case, and on July 10, 2015, a Stipulation of Discontinuance was filed dismissing all claims and counterclaims between and among Hildene and Bimini Capital. In connection with the settlement and in accordance with GAAP, a loss of $3.5 million was accrued at March 31, 2015 and has been charged to operations for the six months ended June 30, 2015 and included in other liabilities in the June 30, 2015 consolidated balance sheet . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 11 . 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 q ualifying 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 transactio ns 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, 2014 , Bimini Capital had a REIT tax net operating loss carryforward (“NOL carryforwards” or “NOLs”) of approximately $17.3 million that is immediately available to offset future REIT taxable income. These REIT NOLs will expire in years 2028 through 2034, if not previo usly used to offset future REIT taxable income. 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 six months ended June 30, 2015 and 2014 , MortCo and Bimini Advisors did not have taxable income primari ly due to the utilization of their respective NOL carryforwards. The Company’s payment of taxes reported on the consolidated statement of cash flows results from alternative minimum taxes (“AMT”) which become due when NOLs are used to offset taxable income . The income tax provision (benefit) for the six and three months ended June 30, 2015 and 2014 is solely attributable to the TRSs. For Bimini Advisors, the provision for the year 2015 periods is determined by applying the statutory Federal rate of 35% to its pre-tax income or loss. During 2014, a benefit was recorded for the release of Bimini Advisor’s deferred tax valuation allowance related to an intangible asset and NOL carryforwards. For MortCo, its provision is generally zero, and it differs from the statutor y Federal rate due primarily to the recording of, and adjustments to, the deferred tax asset valuation allowances and the release of the deferred tax valuation allowance related to NOL carryforwards. The payment of AMT is included in the provision in the period it is paid. Bimini Advisors has available at June 30, 2015 estimated federal and Florida NOL carryforwards of approximately $0.4 million which begin to expire in 2031 and are fully available to offset future federal and Florida taxable income. In connection with Orchid’s IPO, Bimini Advisors paid for, and expensed for GAAP purposes , certain offering costs totaling approximately $3.2 million. For tax purposes, t hese offering costs created an intangible asset related to the management agreement with a tax basis of $3.2 million. The deferred tax assets related to the NOL carryforwards and the intangible asset at June 30, 2015 total approximately $1.4 million. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. During 2014 , the Company re-evaluated its previous posi tion regarding its ability to realize Bimini Advisors’ deferred tax liability and determined that there was sufficient positive evidence to conclude that the realization of Bimini Advisors’ deferred tax assets was more likely than not. As a result, Bimini Advisors recorded a deferred income tax benefit of approximately $ 2.2 million during the six months ended June 30, 2014 related to the release of the valuation allowance. As of June 30, 2015 , MortCo has estimated federal NOL carryforwards of approxim ately $261.5 million and estimated available Florida NOLs of approximately $34.1 million, both of which will begin to expire in 2025, and are fully available to offset future federal and Florida taxable income, respectively. The net de ferred tax assets for MortCo at June 30, 2015 are approximately $94.0 million. As of June 30, 2015 and December 31, 2014 , management did not believe that it had sufficient positive evidence to conclude that the realization of MortCo’s deferred tax assets was more likely than not; therefore, a valuation allowance was provided for the entire balance of MortCo’s deferred tax assets. MortCo holds residual interests in various real estate mortgage investment conduits (“REMICs”), which were issued in 2 004, 2005 and 2006, some of which generate excess inclusion income (“EII”), a type of taxable income pursuant to specific provisions of the Code. In 2008, based on a re-evaluation of its tax position regarding REMIC income, 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 the EII taxable income, 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 uncertainty surrounding the taxation of EII, MortCo accounted 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 the liability recorded in 2008 was reversed during the year ended December 31, 2013, which resulted in a tax benefit of $1.3 million. MortCo continues to file its tax returns following its 2009 tax filing position, and it continues to include a notice of inconsistent treatment in each return. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 12 . 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 C ommon 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 June 30, 2015 and 2014 . Shares of Class C C ommon Stock are not included in the basic EPS computation as these shares do not have participation rights. Shares of Class C C ommon 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 June 30, 2015 and 2014 . The Company has dividend eligible stock incentive plan shares that were outstanding during the six and three months ended June 30, 2015 . 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 h ave no contractual obligation to share in losses. Because there is no such obligation, the incentive plan shares are not inc luded 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 numerator and denominator of EPS for the six and three months ended June 30, 2015 and 2014 . (in thousands, except per-share information) Six Months Ended June 30, Three Months Ended June 30, 2015 2014 2015 2014 Basic and diluted EPS per Class A common share: (Loss) income attributable to Class A common shares: Basic and diluted $ (2,886) $ 5,684 $ (1,500) $ 3,321 Weighted average common shares: Class A common shares outstanding at the balance sheet date 12,346 12,295 12,346 12,295 Effect of weighting (7) (223) - - Weighted average shares-basic and diluted 12,339 12,072 12,346 12,295 (Loss) income per Class A common share: Basic and diluted $ (0.23) $ 0.47 $ (0.12) $ 0.27 (in thousands, except per-share information) Six Months Ended June 30, Three Months Ended June 30, 2015 2014 2015 2014 Basic and diluted EPS per Class B common share: (Loss) income attributable to Class B common shares: Basic and diluted $ (7) $ 15 $ (4) $ 9 Weighted average common shares: Class B common shares outstanding at the balance sheet date 32 32 32 32 Weighted average shares-basic and diluted 32 32 32 32 (Loss) income per Class B common share: Basic and diluted $ (0.23) $ 0.47 $ (0.12) $ 0.27 |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 13 . 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, incl uding 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 ar e 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 th e 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 valua tions, and such valuations currently are determined by the Company based on independent pricing sources and/or third-party broker quotes, when available. Because the price estimates may vary, the Company must make certain judgments and assumptions about th e 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. MBS, retained interests, Eurodollar futures c ontracts, Orchid common stock and interest rate swaptions were recorded at fair value on a recurring basis during the six and three months ended June 30, 2015 and 2014 . When determining fair value measurements, the Company considers th e 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 ident ical 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 June 30, 2015 and December 31, 2014 : (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) June 30, 2015 Mortgage-backed securities $ 107,761 $ - $ 107,761 $ - Eurodollar futures contracts 488 488 - - Orchid Island Capital, Inc. common stock 11,004 11,004 - - Retained interests 2,141 - - 2,141 December 31, 2014 Mortgage-backed securities $ 117,831 $ - $ 117,831 $ - Eurodollar futures contracts 476 476 - - Orchid Island Capital, Inc. common stock 12,811 12,811 - - Retained interests 1,900 - - 1,900 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 six months ended June 30, 2015 and 2014 : (in thousands) Retained Interests 2015 2014 Balances, January 1 $ 1,900 $ 2,531 Gain included in earnings 2,539 2,447 Collections (2,298) (1,843) Balances, June 30 $ 2,141 $ 3,135 During the six months ended June 30, 2015 and 2014 , 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 June 30, 2015 . Retained interests fair value (in thousands) $ 2,141 CPR Range Prepayment Assumption (Weighted Average) Constant Prepayment Rate 10% (10%) Severity Default Assumptions Probability of Default (Weighted Average) Range Of Loss Timing Real Estate Owned 100% 35% Next 10 Months Loans in Foreclosure 100% 35% 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 2.5% 45% Month 29 and Beyond Remaining Life Range Discount Rate Range Cash Flow Recognition Valuation Technique (Weighted Average) (Weighted Average) Nominal Cash Flows Discounted Cash Flow 0.2 - 13.2 (6.5) 27.50% (27.50%) Discounted Cash Flows Discounted Cash Flow 0.2 - 3.6 (1.0) 27.50% (27.50%) |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 14. RELATED PARTY TRANSACTIONS F rank E. Jaumot is a shareholder in an accounting firm from which the Company receive s accounting and tax services. Mr. Jaumot is both a director and a shareholder of Bimini Capital and a shareholder of Orchid . Professional fee s incurred with this firm were $52,000 for the six months ended June 30, 2015 and $52,000 for the six months ended June 30, 2014 . |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2015 | |
Variable Interest Entity [Abstract] | |
Consolidated Variable Interest Entity And Noncontrolling Interest | Note 15. CONSOLIDATED Variable Interest Entit Y AND NONCONTROLLING INTERESTs 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 performan ce and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. As discussed in Note 1, Orchid completed its IPO on February 20, 2013. Management concluded that, after the clos e of its IPO, Orchid was 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 also concluded that Bimini Capital was the primary benefi ciary of Orchid because, under the terms of the management agreement, Bimini Capital had the power to direct the activities of Orchid that most significantly impact its economic performance including asset selection, asset and liability management and inve stment portfolio risk management. As a result, subsequen t to Orchid’s IPO, and until December 31, 2014 , the Company continued to consolidate Orchid in its consolidated financial statements. Orchid completed additional offerings of its common stock during the year ended December 31, 2014. M anagement continued to re-evaluate the conditions resulting in the consolidation of Orchid and at December 31, 2014 concluded that, due to Bimini’s decreased percentage ownership interest in Orchid, the re was no longer a variable interest requiring consolidation . In accordance with ASC 810, the Company deconsolidated Orchid from the consolidated balance sheet as of December 31, 2014. Orchid’s activities were included in the consolidated statements of operations, equ ity and cash f lows through December 31, 2014 and are excluded in subsequent periods . The table below presents the effects of the above on the changes in equity attributable to Bimini Capital stockholders during the six months ended June 30, 2014 . ($ in thousands) Net income attributable to Bimini Capital $ 5,699 Transfers from the noncontrolling interests Decrease in Bimini Capital's paid-in capital for the sale of 6,290,443 common shares of Orchid and the effect of the 24,000 shares of unvested restricted shares of Orchid (1,004) Change from net income attributable to Bimini Capital and transfers from noncontrolling interest $ 4,695 Net income of Orchid for the six and three months ended June 30, 2014 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 six months ended June 30, 2014 . (in thousands) Balance, January 1, 2014 $ 31,615 Issuance of common shares of Orchid Island Capital, Inc. 76,120 Net income attributed to noncontrolling interest 12,538 Amortization of Orchid Island Capital, Inc. equity plan compensation 16 Cash dividends paid to noncontrolling interest (7,378) Balance, June 30, 2014 $ 112,911 The following table summarizes the operating results of Orchid (excluding intercompany transactions ) for the six and three months ended June 30, 2014 , which are reflected in the consolidated statements of operations for the six and three months ended June 30, 2014 . (in thousands) Six Months Ended Three Months Ended June 30, 2014 June 30, 2014 Interest income $ 10,372 $ 6,589 Interest expense (1,087) (676) Net interest income 9,285 5,913 Unrealized gains on mortgage-backed securities 10,124 8,584 Realized gains on mortgage-backed securities 3,891 2,980 Losses on derivative instruments (7,421) (5,728) Net portfolio income 15,879 11,749 Expenses: Accrued incentive compensation 225 225 Directors' fees and liability insurance 240 156 Audit, legal and other professional fees 245 172 Direct REIT operating expenses 88 44 Other administrative 118 88 Total expenses 916 685 Net income $ 14,963 $ 11,064 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation The accompanying consolidated financial statements include the accounts of Bimini Capital, Bimini Advisors and MortCo. The accounts of Orchid are included in the consolidated statements of operations for the six and three months ended June 30, 2014 , and in the statement of cash flows for the six months ended June 30, 2014 . All inter-company accounts and transactions have been eliminated from the consolidated financial statements. Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) T opic 810, Consolidation , requires the consolidat ion of a VIE by an enterprise if it is deemed the pr imary beneficiary of the VIE. Further, ASC 810 requires a qualitative assessment to determine the primary beneficiary of a VIE , an ongoing assessment of whether an enterprise is the primary beneficiary of a VIE , and additional disclosures for entities that have variable interests in VIEs . From the effective date of Orchid’s IPO and until December 31, 2014, management concluded , pursuant to ASC 810, that Orchid wa s a VIE. As a result, subsequent to Orchid’s IPO and until December 31, 2014, the Company conso lidated Orchid in its financial statements. The results of operations of Orchid were included in the Company’s 2014 c onsolidated s tatements of operations and cash flows, however, net income attributable to Bimini Capital stockholders d id not include the portion of net income attributable to noncontrolling interests. In December 2014, management re-evaluated the conditions resulting in the consolidation of Orchid and concluded that, due to Bimini’s decreased percentage ownership interest in Orchid, t here was no longer a variable interest requiring consolidation . As a result, in accordance with ASC 810, the Company deconsolidated Orchid from the consolidated balance sheet as of December 31, 2014. However, as a VIE which was deconsolidated on December 31, 2014, Orchid’s results of operations were included in the consolidated statements of operations and cash flows through December 31, 2014, and are excluded in subsequent periods . Assets recognized as a result of consolidating Orchid in pri or periods did not represent additional assets that could be used to satisfy claims against Bimini Capital’s assts. Conversely, liabilities recognized as a result of consolidating Orchid did not represent additional claims on Bimini Capital’s assets; rath er, they represented 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 7, Bimini Capital has a common share investment in a trust used in connectio n 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 bee n accounted for on the equity method. |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results fo r the six and three month periods ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year end ing December 31, 2015 . The consolidated balance sheet at December 31, 2014 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete consolidated financial statements. For further information, refer to the financial statements and footnotes thereto included in the Company’s A nnual R eport on Form 10-K for the year ended December 31, 2014 . |
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 a nd 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 consolidated financial statements include the fair values of MBS, investment in Orchid common shares, Eurodollar futures contracts, interest rate swaptions, retained interests, asset valuation allowances and deferred tax allowances. |
Statement of Comprehensive Income | Statement of Comprehensive (Loss) Income In accordance with ASC Topic 220, Comprehensive Income , a statement of comprehensive (loss) income has not been included as the Company has no items of other comprehensive income (loss) . Comprehensive (loss) income is the same as net (loss) income f or 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 at the time of purchase. At June 30, 2015 , restricted cash consisted of approximately $0.5 million of cash held by a broker as margin on Eurodollar futures contracts and $2.1 million of cash held on deposit as collateral with repurchase agreement counterpartie s. At December 31, 2014 , restricted cash consisted of approximately $0.5 million of cash held by a broker as margin on Eurodollar futures contracts and $0.3 million of cash held on deposit as collateral with repurchase agreement counterparties . The Company maintains cash balances at four banks, and , at times, balances may exceed federally insured limits. The Company has not experienced any losses related to these ba lances. The Federal Deposit Insurance Corporation insures eligible accounts up to $250,000 per depositor at each financial institution. At June 30, 2015 , the Company’s cash deposits exceeded federally insured limits by approximately $6.0 million. R estricted cash balances are uninsured, but are held in separate customer accounts that are segregated from the general funds of the counterparty. The Company limits uninsured balances to only large, well-known bank s and derivative counterparties and belie ves that it is not exposed to 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 mor tgage 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”). The Company has elected to account for its investment in MBS under the fair value option. Electing the fair value option requires the Company to record changes in fair value in the consolidated statement of operations, which, in management’s view, more appropriately reflects the results of our operations for a particular rep orting 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 securit ies 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 ASC Topic 820, Fair Value Measurement . The definition of fair value in 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 independent pricing sources and/or third-party broker quotes, 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. Premium lost and discount accretion resulting from monthly principal repayments are reflected in unrealize d gains (losses) on MBS in the c ons olidated statements of operations. 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 inde x 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. The amount reported as unrealized gains or losses on mortgage backed securities thus captures the net effect of changes in the fair market value of securities caused by market developments and any premium or discount lost as a result of principal repayments du ring the period. |
Investment In Orchid [Policy Text Block] | Orchid Island Capital, Inc. Common Stock At the date of Orchid’s deconsolidation, the Company elected the fair value option for its continuing investment in Orchid common shares. The change in the fair value of this investment and dividends received on this investment are reflected in other income in the c onsolidated statements of operations for the six and three months ended June 30, 2015 . We estimate the fair value of our investment in Orchid on a market approach using “Level 1” inputs based on the quoted market price of Orchid’s common stock. Electing the fair value option requires the Company to record changes in fair value in the consolidated statement s of operations, which, in management’s view, more appropriately reflects the results of our operations for a particular reporting period and is consistent with how the investment is managed. |
Retained Interests | Retained Interests in Securitizations From 2004 to 2006, 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 ref lected 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 uses derivative instruments to manage interest rate risk, facilitate asset/liabil ity strategies and manage other exposures, and it may continue to do so in the future. The principal instruments that the Company has used to date are Eurodollar futures contracts and options to enter in interest rate swaps (“i nterest rate swaptions”), but it may enter into other transactions in the future. The Company has elected to not treat any of its derivative financ ial instruments as hedges in order to align the accounting treatment of its derivative instruments with the treatment of its portfolio assets under the fair value option. FASB ASC Topic 815, Derivatives and Hedging , requires that all derivative instrument s be carried at fair value. Changes in fair value are recorded in earnings for each period. Holding derivatives creates exposure to credit risk related to the potential for failure on the part of counterparties to honor their commitments. In addition, t he Company may be required to post collateral based on any declines in the market value of the derivatives. In the event of default by a counterparty, the Company may have difficulty recovering its collateral and may not receive payments provided for unde r the terms of the agreement. To mitigate this risk, the Company uses well-established commercial banks as counterparties. |
Financial Instruments | Financial Instruments 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, Orchid Island Capital, Inc. common stock, Eurodollar futures contracts, interest rate swaptions and retained interests in secu ritization 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 13 of the consolidated financial statements. The estimated fa ir value of cash and cash equivalents, restricted cash, accrued interest receivable, other assets, repurchase agreements, accrued interest payable and other liabilities generally approximates their carrying value as of June 30, 2015 and December 31, 2014 , 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 ascer tain 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 7 to the consolidated financial st atements. |
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. |
Repurchase Agreements | Repurchase Agreements The Company finance s 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 account s 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 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 dividends are 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 recorde d 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 ASC Topic 260, Earnings Pe r Share , which requires companies with complex capital structures, common stock equivalents or two (or more) classes of securities that participate in dividend distributions to present both basic and diluted earnings per share (“EPS”) on the face of the co nsolidated 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 treasury stock or two-class me thod, as applicable 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 right s. 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. |
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”). 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 June 30, 2015 , management believes that the Company has complied with the Code requirements an d Bimini Capital continues to qualify as a REIT. As further described in Note 11, Income Taxes, Bimini Advisors and MortC o are taxpaying entit ies for income tax purposes and are taxed separately from Bimini Capital . The Company’s U.S. federal income ta x returns for years end ed on or after December 31, 20 11 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 material ly 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 ASC Topic 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 June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-12, Compensation-Stock Compensation: Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Ac hieved after the Requisite Service Period . ASU 2014-12 requires that performance targets that affect vesting and that could be achieved after the requisite service period be treated as performance conditions. The effective date of ASU 2014-12 is for inter im and annual reporting periods beginning after December 15, 2015. The ASU is not expected to materially impact the Company’s consolidated financial statements. In June 2014, the FASB issued ASU 2014-11, Transfers and Servicing (Topic 860): Repurchase-to -Maturity Transactions, Repurchase Financings, and Disclosures . ASU 2014-11 amends the accounting guidance for repurchase-to-maturity transactions and repurchase agreements executed as repurchase financings, and requires additional disclosure about certain transactions by the transferor. ASU 2014-11 is effective for certain transactions that qualify for sales treatment for the first interim or annual period beginning after December 15, 2014. The new disclosure requirements for repurchase agreements, securit ies lending transactions and repurchase-to-maturity transactions that qualify for secured borrowing treatment is effective for annual periods beginning after December 15, 2014 and for interim periods beginning after March 15, 2015. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. |
Mortgage-Backed Securities (Tab
Mortgage-Backed Securities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Mortgage Backed Securities [Abstract] | |
Schedule of Mortgage-Backed Securities Reconciliation | (in thousands) June 30, 2015 December 31, 2014 Pass-Through MBS: Hybrid Adjustable-rate Mortgages $ 121 $ 442 Fixed-rate Mortgages 101,160 112,174 Total Pass-Through MBS 101,281 112,616 Structured MBS: Interest-Only Securities 3,345 2,276 Inverse Interest-Only Securities 3,135 2,939 Total Structured MBS 6,480 5,215 Total $ 107,761 $ 117,831 |
Schedule Of Mortgage-Backed Securities by Contractual Maturity | (in thousands) June 30, 2015 December 31, 2014 Greater than five years and less than ten years $ 10 $ 16 Greater than or equal to ten years 107,751 117,815 Total $ 107,761 $ 117,831 |
Retained Interests In Securit23
Retained Interests In Securitizations (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Retained Interests In Securitizations [Abstract] | |
Schedule of Retained Interests In Securitizations | (in thousands) Series Issue Date June 30, 2015 December 31, 2014 HMAC 2004-2 May 10, 2004 $ 216 $ 320 HMAC 2004-3 June 30, 2004 694 753 HMAC 2004-4 August 16, 2004 368 496 HMAC 2004-5 September 28, 2004 386 331 HMAC 2004-6 November 17, 2004 477 - Total $ 2,141 $ 1,900 |
Repurchase Agreements (Tables)
Repurchase Agreements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Repurchase Agreements [Abstract] | |
Schedule of Repurchase Agreements | ($ in thousands) OVERNIGHT BETWEEN 2 BETWEEN 31 GREATER (1 DAY OR AND AND THAN LESS) 30 DAYS 90 DAYS 90 DAYS TOTAL June 30, 2015 Fair value of securities pledged, including accrued interest receivable $ - $ 87,826 $ 18,377 $ - $ 106,203 Repurchase agreement liabilities associated with these securities $ - $ 84,939 $ 16,267 $ - $ 101,206 Net weighted average borrowing rate - 0.38% 0.43% - 0.39% December 31, 2014 Fair value of securities pledged, including accrued interest receivable $ - $ 114,433 $ 1,998 $ - $ 116,431 Repurchase agreement liabilities associated with these securities $ - $ 108,074 $ 1,890 $ - $ 109,964 Net weighted average borrowing rate - 0.36% 0.33% - 0.36% |
Schedule of Underlying Assets of Repurchase Agreements when Amount of Repurchase Agreements Exceeds 10 Percent of Assets | ($ in thousands) % of Weighted Stockholders' Average Amount Equity Maturity Repurchase Agreement Counterparties at Risk at Risk (in Days) June 30, 2015 Citigroup Global Markets, Inc. $ 2,532 39.8% 14 JVB Financial Group, LLC 1,517 23.9% 10 ED&F Man Capital Markets Inc. 1,465 23.0% 33 South Street Securities, LLC 812 12.8% 20 CRT Capital Group, LLC 685 10.8% 15 December 31, 2014 JVB Financial Group, LLC $ 1,807 19.6% 8 ED&F Man Capital Markets Inc. 1,490 16.2% 22 |
Derivative Financial Instrume25
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Eurodollar Futures Positions | ($ in thousands) As of June 30, 2015 Repurchase Agreement Funding Hedges Average Weighted Weighted Contract Average Average Notional Entry Effective Open Expiration Year Amount Rate Rate Equity (1) 2015 $ 43,000 0.79% 0.48% $ (67) 2016 56,000 1.45% 1.04% (231) 2017 56,000 2.23% 1.81% (239) 2018 56,000 2.65% 2.23% (118) Total / Weighted Average $ 53,833 1.84% 1.44% $ (655) ($ in thousands) As of June 30, 2015 Junior Subordinated Debt Funding Hedges Average Weighted Weighted Contract Average Average Notional Entry Effective Open Expiration Year Amount Rate Rate Equity (1) 2015 $ 26,000 1.65% 0.45% $ (156) 2016 26,000 1.77% 1.04% (189) 2017 26,000 2.49% 1.81% (177) 2018 26,000 2.94% 2.23% (93) Total / Weighted Average $ 26,000 2.18% 1.39% $ (615) ($ in thousands) As of December 31, 2014 Repurchase Agreement Funding Hedges Average Weighted Weighted Contract Average Average Notional Entry Effective Open Expiration Year Amount Rate Rate Equity (1) 2015 $ 36,500 0.65% 0.63% $ (5) 2016 56,000 1.45% 1.54% 46 2017 56,000 2.23% 2.23% (3) 2018 56,000 2.65% 2.51% (38) Total / Weighted Average $ 50,429 1.72% 1.72% $ - ($ in thousands) As of December 31, 2014 Junior Subordinated Debt Funding Hedges Average Weighted Weighted Contract Average Average Notional Entry Effective Open Expiration Year Amount Rate Rate Equity (1) 2015 $ 26,000 1.48% 0.57% $ (237) 2016 26,000 1.77% 1.54% (61) 2017 26,000 2.49% 2.23% (67) 2018 26,000 2.94% 2.51% (56) Total / Weighted Average $ 26,000 2.06% 1.60% $ (421) |
Income Statement Effect of Derivatives [Table Text Block] | (in thousands) Consolidated Parent-Only Six Months Ended June 30, 2015 2014 2015 2014 Eurodollar futures contracts (short positions) $ (1,009) $ (6,306) $ (1,009) $ (170) Payer swaptions - (1,285) - - Net losses on derivative instruments $ (1,009) $ (7,591) $ (1,009) $ (170) (in thousands) Consolidated Parent-Only Three Months Ended June 30, 2015 2014 2015 2014 Eurodollar futures contracts (short positions) $ 6 $ (4,745) $ 6 $ (146) Payer swaptions - (1,129) - - Net gains (losses) on derivative instruments $ 6 $ (5,874) $ 6 $ (146) |
Offsetting Assets and Liabiltie
Offsetting Assets and Liabilties (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Offsetting [Abstract] | |
Offsetting Liabilities [Table Text Block] | (in thousands) Offsetting of Liabilities Gross Amount Not Offset in the Net Amount Consolidated Balance Sheet Gross Amount of Liabilities Financial Gross Amount Offset in the Presented in the Instruments Cash of Recognized Consolidated Consolidated Posted as Posted as Net Liabilities Balance Sheet Balance Sheet Collateral Collateral Amount June 30, 2015 Repurchase Agreements $ 101,206 $ - $ 101,206 $ (99,146) $ (2,060) $ - December 31, 2014 Repurchase Agreements $ 109,964 $ - $ 109,964 $ (109,706) $ (258) $ - |
Capital Stock (Tables)
Capital Stock (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Capital Stock [Abstract] | |
Schedule Of Outstanding Stock [Table Text Block] | June 30, 2015 December 31, 2014 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 June 30, 2015 and December 31, 2014 $ - $ - Class A Common Stock, $0.001 par value; 98,000,000 shares designated: 12,346,376 shares issued and outstanding as of June 30, 2015 and 12,324,391 shares issued and outstanding as of December 31, 2014 12,346 12,324 Class B Common Stock, $0.001 par value; 1,000,000 shares designated, 31,938 shares issued and outstanding as of June 30, 2015 and December 31, 2014 32 32 Class C Common Stock, $0.001 par value; 1,000,000 shares designated, 31,938 shares issued and outstanding as of June 30, 2015 and December 31, 2014 32 32 $ 12,410 $ 12,388 |
Issuances of Common Stock | Shares Issued Related To: 2015 2014 Directors' compensation 21,985 27,531 Vesting incentive plan shares (1) - 500,000 Shares sold directly to employees (1) - 257,895 Total shares of Class A Common Stock issued 21,985 785,426 See Note 9, Stock Incentive Plans, for details of these issuances . |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Employee Benefits And Share Based Compensation [Abstract] | |
Share Awards [Table Text Block] | Weighted- Average Grant-Date Shares Fair Value Fully vested shares granted 500,000 $ 0.38 |
Performance Units Table Text Block | June 30, 2015 December 31, 2014 Nonvested performance units outstanding at period end 31,500 31,500 Weighted-average grant date fair price $ 1.78 $ 1.78 Unrecognized compensation expense at period end $ 45,946 $ 55,291 Weighted-average remaining vesting term (in years) 2.50 3.00 Intrinsic value of unvested shares at period end $ 88,200 $ 59,850 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (in thousands, except per-share information) Six Months Ended June 30, Three Months Ended June 30, 2015 2014 2015 2014 Basic and diluted EPS per Class A common share: (Loss) income attributable to Class A common shares: Basic and diluted $ (2,886) $ 5,684 $ (1,500) $ 3,321 Weighted average common shares: Class A common shares outstanding at the balance sheet date 12,346 12,295 12,346 12,295 Effect of weighting (7) (223) - - Weighted average shares-basic and diluted 12,339 12,072 12,346 12,295 (Loss) income per Class A common share: Basic and diluted $ (0.23) $ 0.47 $ (0.12) $ 0.27 (in thousands, except per-share information) Six Months Ended June 30, Three Months Ended June 30, 2015 2014 2015 2014 Basic and diluted EPS per Class B common share: (Loss) income attributable to Class B common shares: Basic and diluted $ (7) $ 15 $ (4) $ 9 Weighted average common shares: Class B common shares outstanding at the balance sheet date 32 32 32 32 Weighted average shares-basic and diluted 32 32 32 32 (Loss) income per Class B common share: Basic and diluted $ (0.23) $ 0.47 $ (0.12) $ 0.27 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value on Recurring Basis | (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) June 30, 2015 Mortgage-backed securities $ 107,761 $ - $ 107,761 $ - Eurodollar futures contracts 488 488 - - Orchid Island Capital, Inc. common stock 11,004 11,004 - - Retained interests 2,141 - - 2,141 December 31, 2014 Mortgage-backed securities $ 117,831 $ - $ 117,831 $ - Eurodollar futures contracts 476 476 - - Orchid Island Capital, Inc. common stock 12,811 12,811 - - Retained interests 1,900 - - 1,900 |
Changes is Level 3 Assets Measured at Fair Value on a Recurring Basis | (in thousands) Retained Interests 2015 2014 Balances, January 1 $ 1,900 $ 2,531 Gain included in earnings 2,539 2,447 Collections (2,298) (1,843) Balances, June 30 $ 2,141 $ 3,135 |
Quantitative Information About Level 3 Fair Value Measurements | Retained interests fair value (in thousands) $ 2,141 CPR Range Prepayment Assumption (Weighted Average) Constant Prepayment Rate 10% (10%) Severity Default Assumptions Probability of Default (Weighted Average) Range Of Loss Timing Real Estate Owned 100% 35% Next 10 Months Loans in Foreclosure 100% 35% 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 2.5% 45% Month 29 and Beyond Remaining Life Range Discount Rate Range Cash Flow Recognition Valuation Technique (Weighted Average) (Weighted Average) Nominal Cash Flows Discounted Cash Flow 0.2 - 13.2 (6.5) 27.50% (27.50%) Discounted Cash Flows Discounted Cash Flow 0.2 - 3.6 (1.0) 27.50% (27.50%) |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Variable Interest Entity [Abstract] | |
Changes In Equity From Noncontrolling Interests [Table Text Block] | ($ in thousands) Net income attributable to Bimini Capital $ 5,699 Transfers from the noncontrolling interests Decrease in Bimini Capital's paid-in capital for the sale of 6,290,443 common shares of Orchid and the effect of the 24,000 shares of unvested restricted shares of Orchid (1,004) Change from net income attributable to Bimini Capital and transfers from noncontrolling interest $ 4,695 |
Rollforward Of Noncontrolling Interest [Table Text Block] | (in thousands) Balance, January 1, 2014 $ 31,615 Issuance of common shares of Orchid Island Capital, Inc. 76,120 Net income attributed to noncontrolling interest 12,538 Amortization of Orchid Island Capital, Inc. equity plan compensation 16 Cash dividends paid to noncontrolling interest (7,378) Balance, June 30, 2014 $ 112,911 |
Variable Interest Entity Income Statement [Table Text Block] | (in thousands) Six Months Ended Three Months Ended June 30, 2014 June 30, 2014 Interest income $ 10,372 $ 6,589 Interest expense (1,087) (676) Net interest income 9,285 5,913 Unrealized gains on mortgage-backed securities 10,124 8,584 Realized gains on mortgage-backed securities 3,891 2,980 Losses on derivative instruments (7,421) (5,728) Net portfolio income 15,879 11,749 Expenses: Accrued incentive compensation 225 225 Directors' fees and liability insurance 240 156 Audit, legal and other professional fees 245 172 Direct REIT operating expenses 88 44 Other administrative 118 88 Total expenses 916 685 Net income $ 14,963 $ 11,064 |
Significant Accounting Policies
Significant Accounting Policies (Organization) (Details) | 6 Months Ended |
Jun. 30, 2015 | |
Orchid Island Capital Inc [Member] | |
Initial Offering Period | 20-Feb-13 |
Bimini Capital Management Inc [Member] | |
Entity Incorporation, Date of Incorporation | Sep. 24, 2003 |
Entity Incorporation, State Country Name | Maryland |
Significant Accounting Polici33
Significant Accounting Policies - Liquidity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash And Cash Equivalents At Carrying Value | $ 7,009,072 | $ 37,162,543 | $ 7,009,072 | $ 37,162,543 | $ 4,699,059 | $ 11,959,292 |
Mortgage-backed Securities Available-for-sale, Fair Value Disclosure | 107,761,166 | 107,761,166 | 117,831,032 | |||
Stockholders Equity | 6,357,398 | 6,357,398 | $ 9,201,769 | |||
Principal and Interest Payments Received on MBS | 13,200,000 | |||||
Payments received on retained interests in securitizations | 2,296,806 | 1,842,410 | ||||
Orchid Management Fee And Overhead | 2,300,000 | |||||
Orchid Dividends | $ 530,099 | $ 0 | 1,060,198 | 0 | ||
Litigation Settlement Expense | $ 3,500,000 | $ 0 |
Significant Accounting Polici34
Significant Accounting Policies - Property and Equipment (Details) | 6 Months Ended |
Jun. 30, 2015 | |
Computer Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 3 |
Computer Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 3 |
Office Furniture and Equipment | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 20 |
Office Furniture and Equipment | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 8 |
Building and Building Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 30 |
Building and Building Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 30 |
Significant Accounting Polici35
Significant Accounting Policies - Cash (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | ||
Repurchase Agreement Margin | $ 2,060,000 | $ 258,000 |
Cash Held by Broker as Margin on Eurodollar Futures Contracts | 488,000 | $ 476,000 |
Uninsured Cash | 6,000,000 | |
Federal Deposit Insurance Corporation Per Depositor Limit | $ 250,000 |
Significant Accounting Polici36
Significant Accounting Policies - Income Taxes (Details) - 6 months ended Jun. 30, 2015 | Total |
Accounting Policies [Abstract] | |
Earliest Tax Year Open to Examination | 2,011 |
Required Annual Distribution Of Taxable Income | 90.00% |
Mortgage-Backed Securities - By
Mortgage-Backed Securities - By Type (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair Value | $ 107,761,166 | $ 117,831,032 |
Total Pass Through Certificates [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair Value | 101,281,000 | 112,616,000 |
Total Strucutured Certificates [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair Value | 6,480,000 | 5,215,000 |
Hybrid Adjustable Rate Mortgages [Member] | Total Pass Through Certificates [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair Value | 121,000 | 442,000 |
Fixed-rate Mortgages [Member] | Total Pass Through Certificates [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair Value | 101,160,000 | 112,174,000 |
Interest Only Securities [Member] | Total Strucutured Certificates [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair Value | 3,345,000 | 2,276,000 |
Inverse Interest Only Securities [Member] | Total Strucutured Certificates [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair Value | $ 3,135,000 | $ 2,939,000 |
Mortgage-Backed Securities - 38
Mortgage-Backed Securities - By Maturity (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Mortgage Backed Securities [Abstract] | ||
Greater than five years and less than ten years | $ 10,000 | $ 16,000 |
Greater than or equal to ten years | 107,751,000 | 117,815,000 |
Total mortgage-backed securities | $ 107,761,166 | $ 117,831,032 |
Retained Interests In Securit39
Retained Interests In Securitizations (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Retained Interestes Securitzations [Line Items] | ||
Retained interests in securitizations | $ 2,141,458 | $ 1,899,684 |
HMAC 2004-2 [Member] | ||
Retained Interestes Securitzations [Line Items] | ||
Issue Date | May 10, 2004 | |
Retained interests in securitizations | $ 216,000 | 320,000 |
HMAC 2004-3 [Member] | ||
Retained Interestes Securitzations [Line Items] | ||
Issue Date | June 30, 2004 | |
Retained interests in securitizations | $ 694,000 | 753,000 |
HMAC 2004-4 [Member] | ||
Retained Interestes Securitzations [Line Items] | ||
Issue Date | August 16, 2004 | |
Retained interests in securitizations | $ 368,000 | 496,000 |
HMAC 2004-5 [Member] | ||
Retained Interestes Securitzations [Line Items] | ||
Issue Date | September 28, 2004 | |
Retained interests in securitizations | $ 386,000 | 331,000 |
HMAC 2006-6 [Member] | ||
Retained Interestes Securitzations [Line Items] | ||
Issue Date | November 17, 2004 | |
Retained interests in securitizations | $ 477,000 | $ 0 |
Repurchase Agreements - Narrati
Repurchase Agreements - Narrative (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Disclosure of Repurchase Agreements [Abstract] | ||
Repurchase agreements | $ 101,205,930 | $ 109,963,995 |
Repurchase Agreements Weighted Average Borrowing Rates | 0.39% | 0.36% |
Fair Value of securities pledged, including accrued interest receivable | $ 106,203,000 | $ 116,431,000 |
Repurchase Agreement Margin | $ 2,060,000 | $ 258,000 |
Repurchase Agreements - Maturit
Repurchase Agreements - Maturities (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Fair Value of securities pledged, including accrued interest receivable | $ 106,203,000 | $ 116,431,000 |
Repurchase agreements | $ 101,205,930 | $ 109,963,995 |
Net weighted average borrowing rate | 0.39% | 0.36% |
Overnight (1 Day or Less) [Member] | ||
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% |
Between 2 and 30 Days [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Fair Value of securities pledged, including accrued interest receivable | $ 87,826,000 | $ 114,433,000 |
Repurchase agreements | $ 84,939,000 | $ 108,074,000 |
Net weighted average borrowing rate | 0.38% | 0.36% |
Between 31 and 90 Days [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Fair Value of securities pledged, including accrued interest receivable | $ 18,377,000 | $ 1,998,000 |
Repurchase agreements | $ 16,267,000 | $ 1,890,000 |
Net weighted average borrowing rate | 0.43% | 0.33% |
Greater Than 90 days [Member] | ||
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) | 6 Months Ended | ||
Jun. 30, 2015USD ($) | Jun. 30, 2014 | Dec. 31, 2014USD ($) | |
Repurchase Agreement Counterparty [Line Items] | |||
Amount At Risk | $ 7,000,000 | $ 6,700,000 | |
Citigroup Global Markets, Inc. | |||
Repurchase Agreement Counterparty [Line Items] | |||
Amount At Risk | $ 1,465,000 | $ 2,532,000 | |
Weighted Average Maturity of Repurchase Agreement in Days | 14 days | ||
Percent of Stockholders' Equity At Risk | 0.23 | 0.398 | |
JVB Financial Group, LLC [Member] | |||
Repurchase Agreement Counterparty [Line Items] | |||
Amount At Risk | $ 2,532,000 | $ 1,807,000 | |
Weighted Average Maturity of Repurchase Agreement in Days | 10 days | 8 days | |
Percent of Stockholders' Equity At Risk | 0.398 | 0.196 | |
ED&F Man Capital Markets Inc. | |||
Repurchase Agreement Counterparty [Line Items] | |||
Amount At Risk | $ 1,517,000 | $ 1,490,000 | |
Weighted Average Maturity of Repurchase Agreement in Days | 33 days | 22 days | |
Percent of Stockholders' Equity At Risk | 0.239 | 0.162 | |
South Street Securities, LLC [Member] | |||
Repurchase Agreement Counterparty [Line Items] | |||
Amount At Risk | $ 812,000 | ||
Weighted Average Maturity of Repurchase Agreement in Days | 20 days | ||
Percent of Stockholders' Equity At Risk | 0.128 | ||
CRT Capital Group, LLC [Member] | |||
Repurchase Agreement Counterparty [Line Items] | |||
Amount At Risk | $ 685,000 | ||
Weighted Average Maturity of Repurchase Agreement in Days | 15 days | ||
Percent of Stockholders' Equity At Risk | 0.108 |
Repurchase Agreements - Amoun43
Repurchase Agreements - Amounts At Risk - Narrative (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Disclosure of Repurchase Agreements [Abstract] | ||
Amount At Risk | $ 7,000,000 | $ 6,700,000 |
Derivative Financial Instrume44
Derivative Financial Instruments - Eurodollar Details (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Junior Subordinated Debt [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 26,000,000 | $ 26,000,000 |
Entry Rate | 2.18% | 2.06% |
Weighted Average Effective Rate | 1.39% | 1.60% |
Open Equity | $ (615,000) | $ (421,000) |
Junior Subordinated Debt [Member] | Year 2015 Expiration [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 26,000,000 | $ 26,000,000 |
Entry Rate | 1.65% | 1.48% |
Weighted Average Effective Rate | 0.45% | 0.57% |
Open Equity | $ (156,000) | $ (237,000) |
Junior Subordinated Debt [Member] | Year 2016 Expiration [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 26,000,000 | $ 26,000,000 |
Entry Rate | 1.77% | 1.77% |
Weighted Average Effective Rate | 1.04% | 1.54% |
Open Equity | $ (189,000) | $ (61,000) |
Junior Subordinated Debt [Member] | Year 2017 Expiration [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 26,000,000 | $ 26,000,000 |
Entry Rate | 2.49% | 2.49% |
Weighted Average Effective Rate | 1.81% | 2.23% |
Open Equity | $ (177,000) | $ (67,000) |
Junior Subordinated Debt [Member] | Year 2018 Expiration [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 26,000,000 | $ 26,000,000 |
Entry Rate | 2.94% | 2.94% |
Weighted Average Effective Rate | 2.23% | 2.51% |
Open Equity | $ (93,000) | $ (56,000) |
Repurchase Agreements [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 53,833,000 | $ 50,429,000 |
Entry Rate | 1.84% | 1.72% |
Weighted Average Effective Rate | 1.44% | 1.72% |
Open Equity | $ (655,000) | $ 0 |
Repurchase Agreements [Member] | Year 2015 Expiration [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 43,000,000 | $ 36,500,000 |
Entry Rate | 0.79% | 0.65% |
Weighted Average Effective Rate | 0.48% | 0.63% |
Open Equity | $ (67,000) | $ (5,000) |
Repurchase Agreements [Member] | Year 2016 Expiration [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 56,000,000 | $ 56,000,000 |
Entry Rate | 1.45% | 1.45% |
Weighted Average Effective Rate | 1.04% | 1.54% |
Open Equity | $ (231,000) | $ 46,000 |
Repurchase Agreements [Member] | Year 2017 Expiration [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 56,000,000 | $ 56,000,000 |
Entry Rate | 2.23% | 2.23% |
Weighted Average Effective Rate | 1.81% | 2.23% |
Open Equity | $ (239,000) | $ (3,000) |
Repurchase Agreements [Member] | Year 2018 Expiration [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 56,000,000 | $ 56,000,000 |
Entry Rate | 2.65% | 2.65% |
Weighted Average Effective Rate | 2.23% | 2.51% |
Open Equity | $ (118,000) | $ (38,000) |
Derivative Financial Instrume45
Derivative Financial Instruments - Income Statement Effect (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Losses) gains on derivative instruments | $ 5,625 | $ (5,873,958) | $ (1,009,075) | $ (7,590,975) |
Eurodollar Future [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Losses) gains on derivative instruments | 6,000 | (4,745,000) | (1,009,000) | (6,306,000) |
InterestRateSwaptionMember | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Losses) gains on derivative instruments | 0 | (1,129,000) | 0 | (1,285,000) |
Parent Co [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Losses) gains on derivative instruments | 6,000 | (146,000) | (1,009,000) | (170,000) |
Parent Co [Member] | Eurodollar Future [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Losses) gains on derivative instruments | 6,000 | (146,000) | (1,009,000) | (170,000) |
Parent Co [Member] | InterestRateSwaptionMember | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Losses) gains on derivative instruments | $ 0 | $ 0 | $ 0 | $ 0 |
Offsetting Assets and Liabilt46
Offsetting Assets and Liabilties - Offsetting of Liabilties (Details) - Repurchase Agreements [Member] - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Offsetting Liabilities [Line Items] | ||
Gross Amount Of Recognized Liabilties | $ 101,206,000 | $ 109,964,000 |
Gross Amount Of Liabilties Offset In The Balance Sheet | 0 | 0 |
Net Amount Of Liabilities Presented In The Balance Sheet | 101,206,000 | 109,964,000 |
Gross Amount Of Financial Instruments Posted Not Offset in Balance Sheet | (99,146,000) | (109,706,000) |
Gross Amounts Of Cash Posted Not Offset In Balance Sheet | (2,060,000) | (258,000) |
Net Amount Of Liabilities | $ 0 | $ 0 |
Trust Preferred Securities - Na
Trust Preferred Securities - Narrative (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Debt Instruments [Abstract] | ||
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 | 3.79% |
Capital Stock (Details)
Capital Stock (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Class of Stock [Line Items] | |||
Preferred Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |
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 | |
Common Stock Value Outstanding | $ 12,410 | $ 12,388 | |
Class A Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Common Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |
Designated Shares | 98,000,000 | 98,000,000 | |
Common Shares Issued | 12,346,376 | 12,324,391 | |
Common Shares Outstanding | 12,346,376 | 12,324,391 | 12,295,000 |
Common Stock Value Outstanding | $ 12,346 | $ 12,324 | |
Class B Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Common Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |
Designated Shares | 1,000,000 | 1,000,000 | |
Common Shares Issued | 31,938 | 31,938 | |
Common Shares Outstanding | 31,938 | 31,938 | 32,000 |
Common Stock Value Outstanding | $ 32 | $ 32 | |
Class C Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Common Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |
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 | $ 32 |
Capital Stock - Issuances of Co
Capital Stock - Issuances of Common Stock (Details) - Class A Common Stock [Member] - shares | 3 Months Ended | 6 Months Ended | |
Sep. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Shares Issued Related To [Line Items] | |||
Directors Compensation | 27,531 | 21,985 | 27,531 |
Vesting Incentive Plan Shares | 500,000 | 0 | 500,000 |
Shares Sold To Employees | 257,895 | 0 | 257,895 |
Total Shares Issued During Period | 785,426 | 21,985 | 785,426 |
Stock Incentive Plans - Descrip
Stock Incentive Plans - Descriptions of Plans (Details) - Jun. 30, 2015 - 2011 Long term Compensation Plan [Member] - Class A Common Stock [Member] - shares | Total |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
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 | 6 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share Awards Member [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award Date | 2/19/2014 | |||
Immediately Vested Shares Granted | 500,000 | |||
Shares Sold To Employees | 257,895 | |||
Special Bonus Cash | $ 232,000 | |||
Special Bonus Shares Value | 190,000 | |||
Bonus | $ 422,000 | |||
Share Award Weighted Average Price | $ 0.38 | |||
Performance Units Member [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized Compensation Cost | $ 45,946 | $ 55,291 | $ 45,946 | |
Remaining Weighted Average Vesting Period | 2 years 5 months 11 days | 3 years | 2 years 5 months 11 days | |
Intrinsic Value | $ 88,200 | $ 59,850 | $ 88,200 | |
Incentive Plan Shares Outstanding | 31,500 | 31,500 | 31,500 | |
Weighted Average Grant Date Fair Value | $ 1.78 | $ 1.78 | $ 1.78 |
Committments - Legal Contingenc
Committments - Legal Contingencies Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | |
Litigation Settlement Expense | $ 3,500,000 | $ 0 | |
Bimini Capital Management Inc [Member] | |||
Loss Contingency, Name of Plaintiff | Hildene Capital | ||
Loss Contingency, Domicile of Litigation | New York | ||
Loss Contingency, Lawsuit Filing Date | 7/16/2010 |
Income Taxes - REIT Activities
Income Taxes - REIT Activities (Details) | 6 Months Ended |
Jun. 30, 2015 | |
Maximum [Member] | |
Tax Credit Carryforward [Line Items] | |
REIT Net Operating Loss Carryover Expiration | Dec. 31, 2034 |
Minimum [Member] | |
Tax Credit Carryforward [Line Items] | |
REIT Net Operating Loss Carryover Expiration | Dec. 31, 2028 |
Income Taxes - Taxable REIT Sub
Income Taxes - Taxable REIT Subsidiaries (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Income Taxes [Line Items] | |||||
Income tax provision (benefit) | $ 271,216 | $ 25,601 | $ 608,311 | $ (2,131,758) | |
Deferred tax assets, net | 1,428,754 | 1,428,754 | $ 1,900,064 | ||
Income Taxes Paid | 137,001 | 22,267 | |||
MortCo TRS, LLC [Member] | |||||
Income Taxes [Line Items] | |||||
Deferred tax assets, net | 94,000,000 | 94,000,000 | |||
Valuation Allowance | 94,000,000 | 94,000,000 | |||
Uncertain Tax Position Prior Period Liabilty | 2,100,000 | 2,100,000 | |||
Uncertain Tax Position Prior Period Taxable Income | 2,100,000 | ||||
Uncertain Tax Position Prior Period Payments | 800,000 | ||||
Uncertain Tax Position Prior Period Reversal | 1,300,000 | ||||
MortCo TRS, LLC [Member] | Federal | |||||
Income Taxes [Line Items] | |||||
Utilization of Net Operating Loss Carryovers | $ 261,500,000 | ||||
Operating Loss Carryforwards, Expiration Dates | Dec. 31, 2025 | ||||
Uncertain Tax Position Prior Period Taxable Income | $ 2,100,000 | ||||
Uncertain Tax Position Prior Period Payments | 800,000 | ||||
Uncertain Tax Position Prior Period Reversal | 1,300,000 | ||||
MortCo TRS, LLC [Member] | Florida | |||||
Income Taxes [Line Items] | |||||
Utilization of Net Operating Loss Carryovers | $ 34,100,000 | ||||
Operating Loss Carryforwards, Expiration Dates | Dec. 31, 2025 | ||||
Bimini Advisorsinc [Member] | |||||
Income Taxes [Line Items] | |||||
Income tax provision (benefit) | $ 2,200,000 | ||||
Deferred tax assets, net | 1,400,000 | 1,400,000 | |||
Infintite Life Intangible | 3,200,000 | 3,200,000 | |||
Bimini Advisorsinc [Member] | Federal | |||||
Income Taxes [Line Items] | |||||
Net Operating Loss Carryforwards | 400,000 | $ 400,000 | |||
Operating Loss Carryforwards, Expiration Dates | Dec. 31, 2031 | ||||
Bimini Advisorsinc [Member] | Florida | |||||
Income Taxes [Line Items] | |||||
Net Operating Loss Carryforwards | $ 400,000 | $ 400,000 | |||
Operating Loss Carryforwards, Expiration Dates | Dec. 31, 2031 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Class A Common Stock [Member] | |||||
Net Income (Loss) Available to Common Stockholders, Diluted [Abstract] | |||||
Net Income (Loss) Available to Common Stockholders, Basic | $ (1,500,000) | $ 3,321,000 | $ (2,886,000) | $ 5,684,000 | |
Net Income (Loss) Available to Common Stockholders, Diluted | $ (1,500,000) | $ 3,321,000 | $ (2,886,000) | $ 5,684,000 | |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |||||
Common Shares Outstanding | 12,346,376 | 12,295,000 | 12,346,376 | 12,295,000 | 12,324,391 |
Unvested Dividend Eligible Shares Outstanding at the Balance Sheet Date | 0 | 0 | 0 | 0 | |
Effect of Weighting | 0 | 0 | (7,000) | (223,000) | |
Weighted Average Shares - Basic | 12,346,224 | 12,294,879 | 12,339,358 | 12,071,977 | |
Weighted Average Shares - Diluted | 12,346,224 | 12,294,879 | 12,339,358 | 12,071,977 | |
Income (Loss) Per Share - Basic | $ (0.12) | $ 0.27 | $ (0.23) | $ 0.47 | |
Income (Loss) Pe Share - Diluted | $ (0.12) | $ 0.27 | $ (0.23) | $ 0.47 | |
Class B Common Stock [Member] | |||||
Net Income (Loss) Available to Common Stockholders, Diluted [Abstract] | |||||
Net Income (Loss) Available to Common Stockholders, Basic | $ (4,000) | $ 9,000 | $ (7,000) | $ 15,000 | |
Net Income (Loss) Available to Common Stockholders, Diluted | $ (4,000) | $ 9,000 | $ (7,000) | $ 15,000 | |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |||||
Common Shares Outstanding | 31,938 | 32,000 | 31,938 | 32,000 | 31,938 |
Effect of Weighting | 0 | 0 | 0 | 0 | |
Weighted Average Shares - Basic | 31,938 | 31,938 | 31,938 | 31,938 | |
Weighted Average Shares - Diluted | 31,938 | 31,938 | 31,938 | 31,938 | |
Income (Loss) Per Share - Basic | $ (0.12) | $ 0.27 | $ (0.23) | $ 0.47 | |
Income (Loss) Pe Share - Diluted | $ (0.12) | $ 0.27 | $ (0.23) | $ 0.47 |
Assets and Liabilities Recorded
Assets and Liabilities Recorded at Fair Value on Recurring Basis (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities | $ 107,761,166 | $ 117,831,032 |
Eurodollar Futures Contracts | 488,000 | 476,000 |
Retained Interests | 2,141,000 | 1,900,000 |
Investment In Orchid | 11,004,464 | 12,810,728 |
Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities | 107,761,166 | 117,831,032 |
Eurodollar Futures Contracts | 488,000 | 476,000 |
Retained Interests | 2,141,000 | 1,900,000 |
Investment In Orchid | 11,004,000 | 12,811,000 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities | 0 | 0 |
Eurodollar Futures Contracts | 488,000 | 476,000 |
Retained Interests | 0 | 0 |
Investment In Orchid | 11,004,000 | 12,811,000 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities | 107,761,166 | 117,831,032 |
Eurodollar Futures Contracts | 0 | 0 |
Retained Interests | 0 | 0 |
Investment In Orchid | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities | 0 | 0 |
Eurodollar Futures Contracts | 0 | 0 |
Retained Interests | 2,141,000 | 1,900,000 |
Investment In Orchid | $ 0 | $ 0 |
Changes in Level 3 Assets Measu
Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Details) - Retained Interest [Member] - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $ 1,900,000 | $ 2,531,000 |
Gain (loss) Included in Earnings | 2,539,000 | 2,447,000 |
Collections | (2,298,000) | (1,843,000) |
Ending Balance | $ 2,141,000 | $ 3,135,000 |
Quantitative Information About
Quantitative Information About Level 3 Fair Value Measurements - Prepayment Assumptions (Details) - 6 months ended Jun. 30, 2015 - Retained Interest [Member] | Total |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Prepayment Method | Constant Prepayment Rate |
Maximum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Prepayment Range | 10.00% |
Minimum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Prepayment Range | 10.00% |
Weighted Average [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Prepayment Range | 10.00% |
Quantitative Information Abou59
Quantitative Information About Level 3 Fair Value Measurements - Default Assumptions (Details) - 6 months ended Jun. 30, 2015 - Retained Interest [Member] | Total |
Real Estate Owned [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Probability of Default | 100.00% |
Range Of Loss Timining | Next 10 Months |
Real Estate Owned [Member] | Maximum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Loss Severity Range | 35.00% |
Real Estate Owned [Member] | Minimum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Loss Severity Range | 35.00% |
Real Estate Owned [Member] | Weighted Average [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Loss Severity Range | 35.00% |
Loans In Foreclosure [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Probability of Default | 100.00% |
Range Of Loss Timining | Month 4 - 13 |
Loans In Foreclosure [Member] | Maximum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Loss Severity Range | 35.00% |
Loans In Foreclosure [Member] | Minimum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Loss Severity Range | 35.00% |
Loans In Foreclosure [Member] | Weighted Average [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Loss Severity Range | 35.00% |
Loans 90 Days Delinquent [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Probability of Default | 100.00% |
Range Of Loss Timining | Month 11-28 |
Loans 90 Days Delinquent [Member] | Maximum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Loss Severity Range | 45.00% |
Loans 90 Days Delinquent [Member] | Minimum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Loss Severity Range | 45.00% |
Loans 90 Days Delinquent [Member] | Weighted Average [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Loss Severity Range | 45.00% |
Loans 60 Days Delinquent [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Probability of Default | 85.00% |
Range Of Loss Timining | Month 11-28 |
Loans 60 Days Delinquent [Member] | Maximum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Loss Severity Range | 45.00% |
Loans 60 Days Delinquent [Member] | Minimum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Loss Severity Range | 45.00% |
Loans 60 Days Delinquent [Member] | Weighted Average [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Loss Severity Range | 45.00% |
Loans 30 Days Delinquent [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Probability of Default | 75.00% |
Range Of Loss Timining | Month 11-28 |
Loans 30 Days Delinquent [Member] | Maximum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Loss Severity Range | 45.00% |
Loans 30 Days Delinquent [Member] | Minimum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Loss Severity Range | 45.00% |
Loans 30 Days Delinquent [Member] | Weighted Average [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Loss Severity Range | 45.00% |
Current Loans [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Range Of Loss Timining | Month 29 and Beyond |
Current Loans [Member] | Maximum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Probability of Default | 2.50% |
Loss Severity Range | 45.00% |
Current Loans [Member] | Minimum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Probability of Default | 2.50% |
Loss Severity Range | 45.00% |
Current Loans [Member] | Weighted Average [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Loss Severity Range | 45.00% |
Quantitative Information Abou60
Quantitative Information About Level 3 Fair Value Measurements - Cash Flow Recognition (Details) - 6 months ended Jun. 30, 2015 | Total |
Nominal Cashflows [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Valuation Technique | Discounted Cash Flow |
Discounted Cashflows [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Valuation Technique | Discounted Cash Flow |
Maximum [Member] | Nominal Cashflows [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Remaining Life Range | 13.2 |
Fair Value Inputs Discount Rate | 27.50% |
Maximum [Member] | Discounted Cashflows [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Remaining Life Range | 3.6 |
Fair Value Inputs Discount Rate | 27.50% |
Minimum [Member] | Nominal Cashflows [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Remaining Life Range | 0.2 |
Fair Value Inputs Discount Rate | 27.50% |
Minimum [Member] | Discounted Cashflows [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Remaining Life Range | 0.2 |
Fair Value Inputs Discount Rate | 27.50% |
Weighted Average [Member] | Nominal Cashflows [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Remaining Life Range | 6.5 |
Fair Value Inputs Discount Rate | 27.50% |
Weighted Average [Member] | Discounted Cashflows [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Remaining Life Range | 1 |
Fair Value Inputs Discount Rate | 27.50% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Frank E. Jaumot [Member] | ||
Related Party Transaction [Line Items] | ||
Professional Fees Paid | $ 52,000 | $ 52,000 |
Variable Interest Entities - No
Variable Interest Entities - Noncontrolling Interest Rollforward (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Variable Interest Entity [Line Items] | ||||
Net (Loss) Income attributable to Bimini Capital stockholders | $ (1,504,479) | $ 3,329,976 | $ (2,893,407) | $ 5,699,188 |
Orchid Island Capital Inc [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Net (Loss) Income attributable to Bimini Capital stockholders | 5,699,000 | |||
Increase in Bimini Capital's paid-in capital for sale of common shares of Orchid Island Capital, Inc. | (1,004,000) | |||
Change from net loss attributable to Bimini Capital and transfers from noncontrolling interest | $ 4,695,000 | |||
Subsidiary Shares Issued | 6,290,443 |
Varialble Interest Entity - NCI
Varialble Interest Entity - NCI (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Minority Interest Roll Forward | ||||
Net Income (Loss) Attributable to Noncontrolling Interest | $ 0 | $ 9,584,234 | $ 0 | $ 12,538,193 |
Orchid Island Capital Inc [Member] | ||||
Minority Interest Roll Forward | ||||
Beginning Balance | 31,615,000 | |||
Issuance of common shares of Orchid Island Capital, Inc. | 76,120,000 | |||
Net Income (Loss) Attributable to Noncontrolling Interest | 12,538,000 | |||
Amortization of Equity Incentive Compensation | 16,000 | |||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (7,378,000) | |||
Ending Balance | $ 112,911,000 | $ 112,911,000 |
Variable Interest Entities - VI
Variable Interest Entities - VIE Income Statement (Details) - Jun. 30, 2014 - Variable Interest Entity Primary Beneficiary [Member] - USD ($) | Total | Total |
Portfolio Income [Abstract] | ||
Interest income | $ 6,589,000 | $ 10,372,000 |
Interest expense | 676,000 | 1,087,000 |
Net interest income | 5,913,000 | 9,285,000 |
Unrealized gains on mortgage-backed securities | 8,584,000 | 10,124,000 |
Realized gains on mortgage-backed securities | 2,980,000 | 3,891,000 |
Losses on derivative financial instruments | (5,728,000) | (7,421,000) |
Net portfolio income | 11,749,000 | 15,879,000 |
Selling General And Administrative Expense [Abstract] | ||
Accrued Incentive Compensation | 225,000 | 225,000 |
Directors' fees and liability insurance | 156,000 | 240,000 |
Audit, legal and other professional fees | 172,000 | 245,000 |
Direct REIT operating expenses | 44,000 | 88,000 |
Other administrative | 88,000 | 118,000 |
Total expenses | 685,000 | 916,000 |
Net income | $ 11,064,000 | $ 14,963,000 |
Uncategorized Items - bmnm-2015
Label | Element | Value |
Profit Loss | us-gaap_ProfitLoss | $ (1,504,479) |
Profit Loss | us-gaap_ProfitLoss | 12,914,210 |
Losses Gains On Retained Interests In Securitizations | bmnm_LossesGainsOnRetainedInterestsInSecuritizations | 1,052,824 |
Losses Gains On Retained Interests In Securitizations | bmnm_LossesGainsOnRetainedInterestsInSecuritizations | 2,252,897 |
Orchid Unrealized | bmnm_OrchidUnrealized | (1,992,780) |
Orchid Unrealized | bmnm_OrchidUnrealized | $ 0 |