Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 08, 2017 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
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 | 12,631,627 | |
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, 2017 | Dec. 31, 2016 |
Mortgage-backed securities, at fair value | ||
Pledged to counterparties | $ 141,900,146 | $ 129,582,386 |
Unpledged | 582,829 | 719,603 |
Total mortgage-backed securities | 142,482,975 | 130,301,989 |
Cash and cash equivalents | 6,398,651 | 4,429,459 |
Restricted cash | 588,620 | 1,221,978 |
Orchid Island Capital, Inc. common stock, at fair value | 14,987,555 | 15,108,240 |
Retained interests in securitizations | 644,128 | 1,113,736 |
Accrued interest receivable | 541,201 | 512,760 |
Property and equipment, net | 3,378,086 | 3,407,040 |
Deferred tax assets, net | 63,596,315 | 63,833,063 |
Other assets | 2,861,511 | 2,942,139 |
Total Assets | 235,479,042 | 222,870,404 |
Liabilities | ||
Repurchase agreements | 134,632,521 | 121,827,586 |
Junior subordinated notes due to Bimini Capital Trust II | 26,804,440 | 26,804,440 |
Accrued interest payable | 120,968 | 114,199 |
Other Liabilities | 1,324,713 | 1,977,281 |
Total Liabilities | 162,882,642 | 150,723,506 |
Stockholders' Equity | ||
Preferred stock | 0 | 0 |
Common stock | 12,696 | 12,696 |
Additional paid in capital | 334,865,181 | 334,850,838 |
Accumulated deficit | (262,281,477) | (262,716,636) |
Stockholders Equity | 72,596,400 | 72,146,898 |
Total Liabilities and Stockholders' Equity | $ 235,479,042 | $ 222,870,404 |
Balance Sheet Parentheticals
Balance Sheet Parentheticals - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Class of Stock [Line Items] | ||
Preferred Stock Par Or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Shares Issued | 0 | 0 |
Preferred Shares Outstanding | 0 | 0 |
Preferred Stock Value | $ 0 | $ 0 |
Common Stock Par Or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock Value Outstanding | $ 12,696 | $ 12,696 |
Class A Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Common Stock Par Or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock Shares Authorized | 98,000,000 | 98,000,000 |
Common Stock Shares Issued | 12,631,627 | 12,631,627 |
Common Stock Shares Outstanding | 12,631,627 | 12,631,627 |
Common Stock Value Outstanding | $ 12,632 | $ 12,632 |
Class B Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Common Stock Par Or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock Shares Authorized | 1,000,000 | 1,000,000 |
Common Stock Shares Issued | 31,938 | 31,938 |
Common Stock Shares Outstanding | 31,938 | 31,938 |
Common Stock Value Outstanding | $ 32 | $ 32 |
Class C Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Common Stock Par Or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock Shares Authorized | 1,000,000 | 1,000,000 |
Common Stock Shares Issued | 31,938 | 31,938 |
Common Stock Shares Outstanding | 31,938 | 31,938 |
Common Stock Value Outstanding | $ 32 | $ 32 |
Preferred Undesignated [Member] | ||
Class of Stock [Line Items] | ||
Preferred Stock Par Or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Shares Authorized | 9,900,000 | 9,900,000 |
Preferred Shares Issued | 0 | 0 |
Preferred Shares Outstanding | 0 | 0 |
SeriesAPreferredStockMember | ||
Class of Stock [Line Items] | ||
Preferred Stock Par Or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Shares Authorized | 100,000 | 100,000 |
Preferred Shares Issued | 0 | 0 |
Preferred Shares Outstanding | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Portfolio Income | ||||
Interest income | $ 1,268,974 | $ 1,025,076 | $ 2,561,649 | $ 1,842,540 |
Interest expense | 323,561 | 174,069 | 606,755 | 301,973 |
Net interest income, before interest on junior subordinated notes | 945,413 | 851,007 | 1,954,894 | 1,540,567 |
Interest expense on junior subordinated notes | 305,695 | 276,361 | 597,879 | 539,972 |
Net interest income | 639,718 | 574,646 | 1,357,015 | 1,000,595 |
Unrealized (losses) gains on mortgage-backed securities | (26,924) | 249,087 | (464,037) | (39,157) |
Realized gains on mortgage-backed securities | 0 | 19,126 | (689) | 250,973 |
(Losses) gains on derivative instruments | (831,513) | (757,613) | (810,013) | (2,057,475) |
Net portfolio income (loss) | (218,719) | 85,246 | 82,276 | (845,064) |
Other income: | ||||
Gains on retained interests in securitizations | 498,059 | 533,847 | 304,117 | 1,079,867 |
Unrealized losses on Orchid Island Capital, Inc. common stock | (197,605) | (111,603) | (1,324,920) | 502,213 |
Orchid Island Capital, Inc. dividends | 638,415 | 585,915 | 1,241,830 | 1,171,830 |
Advisory services | 1,788,043 | 1,273,517 | 3,458,044 | 2,542,536 |
Other expense, net | 402 | 230 | 857 | 460 |
Total other income | 2,727,314 | 2,281,906 | 3,679,928 | 5,296,906 |
Expenses | ||||
Compensation and related benefits | 879,037 | 755,307 | 1,814,948 | 1,551,017 |
Directors fees and liability insurance | 165,925 | 155,538 | 333,100 | 311,075 |
Audit, legal and other professional fees | 89,456 | 138,078 | 226,580 | 295,150 |
Other administrative expenses | 298,987 | 304,930 | 658,317 | 566,556 |
Total expenses | 1,433,405 | 1,353,853 | 3,032,945 | 2,723,798 |
Net (loss) income before income tax provision (benefit) | 1,075,190 | 1,013,299 | 729,259 | 1,728,044 |
Income tax provision (benefit) | 425,816 | 411,601 | 294,100 | 680,355 |
Net (loss) income | $ 649,374 | $ 601,698 | $ 435,159 | $ 1,047,689 |
Class A Common Stock [Member] | ||||
Basic and Diluted Net (Loss) Income Per Share of: | ||||
Basic | $ 0.05 | $ 0.05 | $ 0.03 | $ 0.08 |
Diluted | $ 0.05 | $ 0.05 | $ 0.03 | $ 0.08 |
Weighted Average Shares Outstanding | ||||
Weighted Average Number Of Basic Shares Outstanding | 12,701,627 | 12,709,127 | 12,701,627 | 12,687,836 |
Weighted Average Number Of Diluted Shares Outstanding | 12,701,627 | 12,709,127 | 12,701,627 | 12,687,836 |
Class B Common Stock [Member] | ||||
Basic and Diluted Net (Loss) Income Per Share of: | ||||
Basic | $ 0.05 | $ 0.05 | $ 0.03 | $ 0.08 |
Diluted | $ 0.05 | $ 0.05 | $ 0.03 | $ 0.08 |
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, 2017 - USD ($) | Total | Common Stock [Member] | Additional Paid In Capital [Member] | Retained Earnings [Member] |
Beginning Balances at Dec. 31, 2016 | $ 72,146,898 | $ 12,696 | $ 334,850,838 | $ (262,716,636) |
Increase (Decrease) in Stockholders' Equity | ||||
Net income | 435,159 | 0 | 0 | 435,159 |
Amortization of equity plan compensation | 0 | 14,343 | 0 | |
Ending Balances at Jun. 30, 2017 | $ 72,596,400 | $ 12,696 | $ 334,865,181 | $ (262,281,477) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net (loss) income | $ 435,159 | $ 1,047,689 |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | ||
Stock based compensation | 14,343 | 209,536 |
Depreciation | 39,253 | 43,988 |
Deferred income tax provision (benefit) | 236,748 | 531,878 |
Losses (gains) on mortgage-backed securities | 464,726 | (211,816) |
Gains on retained interests in securitizations | (304,117) | (1,079,867) |
Unrealized losses on Orchid Island Capital, Inc. common stock | (1,324,920) | 502,213 |
Changes in operating assets and liabilities | ||
Accrued interest receivable | (28,441) | (74,956) |
Other assets | 80,628 | (220,035) |
Accrued interest payable | 6,769 | 35,022 |
Other liabilities | (652,568) | (887,770) |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 1,617,420 | (1,108,544) |
From mortgage-backed securities investments | ||
Purchases | (19,219,818) | (74,459,950) |
Sales | 1,654,834 | 41,767,104 |
Principal repayments | 4,919,272 | 6,055,058 |
Payments received on retained interests in securitizations | 773,725 | 844,870 |
Purchases of property and equipment | (10,299) | 0 |
Payments To Acquire Equity Method Investments | 1,204,235 | 1,859,277 |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (13,086,521) | (27,652,195) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from repurchase agreements | 488,295,370 | 424,489,350 |
Principal payments on repurchase agreements | (475,490,435) | (397,998,869) |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | 12,804,935 | 26,490,481 |
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 1,335,834 | (2,270,258) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 5,651,437 | 6,712,483 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | 6,987,271 | 4,442,225 |
Cash paid during the period for: | ||
Interest | 1,197,865 | 806,923 |
Income Taxes | $ 209,916 | $ 515,433 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
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” or the “Company” ), was formed in September 2003 for the purpose of creating and managing a leveraged investment portfolio consisting of residential mortgage-backed securities (“MBS”). In addition, the Company manages an MBS p ortfolio for Orchid Island Capital, Inc. (“Orchid”) and receives fees for providing these services. Consolidation The accompanying consolidated financial statements include the accounts of Bimini Capital, its wholly-owned subsidiaries, Bimini Advisors Holdings, LLC (formerly known as Bimini Advisors, Inc.) and Royal Palm Capital, LLC (formerly known as MortCo TRS, LLC). Bimini Advisors Holdings, LLC and its wholly-owned subsidiary, Bimini Advisors, LLC are collectively referred to as "Bimini Advisors. " Royal Palm Capital, LLC and its wholly-owned subsidiaries are collectively referred to as "Royal Palm." All inter-company accounts and transactions have been eliminated from the consolidated financial statements. Financial Accounting Standards Board ( the "FASB") Accounting Standards Codification ("ASC") Topic 810, Consolidation, requires the consolidation of a variable interest entity ("VIE") by an enterprise if it is deemed the primary beneficiary of the VIE. Bimini Capital has a common share investme nt in a trust used in connection with the issuance of Bimini Capital's junior subordinated notes. See Note 8 for a description of the accounting used for this VIE. Basis of Presentation The accompanying unaudited condensed 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 incl ude 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. Operatin g results fo r the six and three month periods ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year end ing December 31, 2017 . The consolidated balance sheet at December 31, 2016 has been derived from the aud ited 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, 2016 . 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 a ssets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates affecting the accompanying consolidated financial statements include the fair values of MBS, investment in Orchid common shares, derivatives, retained interests, asset valuation allowances and deferred tax asset allowances recorded for each accou nting period. Statement of Comprehensive Income In accordance with ASC Topic 220, Comprehensive Income , a statement of comprehensive income has not been included as the Company has no items of other comprehensive income (loss) . Comprehensive income is the same as net income for all periods presented. Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents include cash on deposit with financial institutions and highly liquid investments with original maturities of three months or less at the time of purchase. Restricted cash includes cash pledged as collateral for repurchase agreements and derivative instruments. (in thousands) June 30, 2017 December 31, 2016 Cash and cash equivalents $ 6,398,651 $ 4,429,459 Restricted cash 588,620 1,221,978 Total cash, cash equivalents and restricted cash $ 6,987,271 $ 5,651,437 The Company maintains cash balances at several banks, and at times, these balances may exceed federally insured limits. The Company has not experienced any losses related to these balances. The Federal Deposit Insurance Corporation insures eligible accounts up to $250,000 per depositor at each financial institution. At June 30, 2017 , the Company’s cash deposits exceeded federally insured limits by approximately $4.6 million. Restricted cash balances are uninsured, but are held in sep arate 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 believes that it is not exposed to significant credit risk on c ash 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- onl y (“IIO”) securities representing interest in or obligations backed by pools of mortgage-backed loans. 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 reporting period and is consistent with the underlying economi cs 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 s old 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 base d 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 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 betwe en income accrued and the interest received on the security is characterized as a return of investment and serves to reduce the asset’s carrying value. At each reporting date, the effective yield is adjusted prospectively from the reporting period based on the new estimate of prepayments and the contractual terms of the security. For IIO securities, effective yield and income recognition calculations also take into account the index value applicable to the security. Changes in fair value of MBS during eac h 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 during the period. Orchid Island Capital, Inc. Common Stock The Company has elected the fair value option for its 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 consolidated statements of operations. We estimate th e 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 on a national stock exchange. 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, mo re appropriately reflects the results of our operations for a particular reporting period and is consistent with how the investment is managed. Advisory Services Orchid is externally managed and advised by Bimini Advisors pursuant to the terms of a management agreement. Under the terms of the management agreement , Orchid is obligated to pay Bimini Advisors a monthly management fee and a pro rata portion of certain overhead costs and to reimburse the Company for any direct expenses incurred on its behalf. Retained Interests in Securitizations Retained interests in the subordinated tranches of securities created in securitization transactions were initially recorded at their fair value when issued by Royal Palm. Subsequent adjustments to fair value are reflected in earnings. Quoted market prices for these assets are generally not available, so the Company estimates fair value based on the present value of expected future cash flows using management’s best estimates of key assumptions, which include expected credit losses, prepayment speeds, weighted-average life, and discount rates commensurate with the inherent risks of the asset. Derivative Financial Instruments The Company uses derivative instruments to manage interest rate risk, facilitate asset/liability strategies and manage other exposures, and it may continue to do so in the future. The principal instruments that the Company has used to date are Treasury Note (“ T-Note”) and Eurodollar futures contracts, but the Company may enter into other transactions in the future. The Company has elected not to treat any of its derivative financial instruments as hedges in order to align the accounting treatment of its deri vative instruments with the treatment of its portfolio assets under the fair value option. FASB ASC Topic 815, Derivatives and Hedging , requires that all derivative instruments 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, the Company may be required to post collateral based on any declines in the marke t 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 under the terms of the agreement. To mitigate this risk, the Company uses only 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 common stock, Eurodollar futures contracts, interest rate swaptions and retained interests in securitization transactions are accounted for at fair value in the consolidated balance sheets. The methods and assumptions used to estimate fair value for these instruments are presented in Note 14 of the consolidated financial statements. The estimated fair value of cash and cash equivalents, restricted cash, accrued interest receivable, other asse ts, repurchase agreements, accrued interest payable and other liabilities generally approximates their carrying value as of June 30, 2017 and December 31, 2016 , due to the short-term nature of these financial in struments. It is impractical to estimate the fair value of the Company’s junior subordinated notes. Currently, there is a limited market for these types of instruments and the Company is unable to ascertain what interest rates would be available to the Company for similar financial instruments. Information regarding carrying amount and effective interest rate for these instruments is presented in Note 8 to the consolidated financial statements. Property and Equipment, net Property and equipment, net, consists of computer equipment with a depreciable life of 3 years, office furniture and equipment with depreciable lives of 8 to 20 years, land which has no depreciable life, and buildings and improvements with depreciable lives of 30 years. Property and equipment is recorded at acquisition cost and depreciated using the straight-line method over the estimated useful lives of the assets. Repurchase Agreements The Company finances the acquisition of the majority of its PT MBS through the use of repur chase 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 Com pany 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. 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 Comp any’s common stock or other equity instruments, the transactions are recorded on the basis of the fair value of the service received or the fair value of the equity instruments issued, whichever is more readily measurable at the date of issuance. Earnings Per Share The Company follows the provisions of ASC Topic 260, Earnings Per Share , which requires companies with complex capital structures, common stock equivalents or two (or more) classes of securities that participate in dividend distributions to present both basic and diluted earnings per share (“EPS”) on the face of the consolidated statement of operations. Basic EPS is calculated as income available to common stockholders divided by the weighted average number of common shares outstanding du ring the period. Diluted EPS is calculated using the treasury stock or two-class method, as applicable for common stock equivalents. However, the common stock equivalents are not included in computing diluted EPS if the result is anti-dilutive. Outstandin g 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 B oard 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 in cluded in the basic EPS computation as these shares do not have participation rights. The outstanding shares of Class B and Class C Common Stock are not included in the computation of diluted EPS for the Class A Common Stock as the conditions for conversio n into shares of Class A Common Stock were not met. Income Taxes For the calendar year ended December 31, 2015, Bimini Capital, Bimini Advisors, Inc. and Royal Palm were separate taxpaying entities for income tax purposes and filed separate Federal income tax returns. Bimini Advisors, Inc. remained a separate tax paying entity through January 31, 2016; on that date, Bimini Advisors, Inc. was reorganized (as Bimini Advisors Holdings, LLC) to be an LLC wholly-owned by Bimini Capital. Beginning with the tax period starting on February 1, 2016, Bimini Capital and Bimini Advisors are combined as a single tax paying entity. Royal Palm continues to be treated as a separate tax paying entity. Income taxes are provided for using the asset and liability method. Deferred tax assets and liabilities represent the differences between the financial statement and income tax bases of assets and liabilities using enacted tax rates. The measurement of net deferred tax assets is adjusted by a valuation allowance if, based on the Company’s evaluation, it is more likely than not that they will not be realized. The Company’s U.S. federal income tax returns for years ended on or after December 31, 2013 rema in open for examination. Although management believes its calculations for tax returns are correct and the positions taken thereon are reasonable, the final outcome of tax audits could be materially different from the tax returns filed by the Company, and those differences could result in significant costs or benefits to the Company. The Company measures, recognizes and presents its uncertain tax positions in accordance with ASC Topic 740, Income Taxes . Under that guidance, the Company assesses the likeli hood, 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. The Company recognizes tax positions in the financial statements only when it is more likely than not that the position will be sustained upon examination by the relevant taxing authority based on the technical merits of the position. A position that meets this standard is measured at the largest amount of benefit that will more likely than not be realized upon settlement. The difference between the benefit recognized and the tax benefit claimed on a tax return is referred to as an unrecognized tax benefit and is recorded as a liability in the consolidated balance sheets. The Company records income tax-related interest and penalties, if applicable, within the income tax provision. Recent Accounting Pronouncements In November 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-18, Statement of Cash Flows – (Topic 230): Restricted Cash. ASU 2016-18 requires that restricted cash and restricted cash equivalents be included as compo nents of total cash and cash equivalents as presented on the statement of cash flows. ASU 2016-18 is effective for fiscal years, and for interim periods within those years, beginning after December 15, 2017. Early application is permitted. The Company ad opted the ASU beginning with the first quarter of 2017. The prior period consolidated statement of cash flows has been retrospectively adjusted to conform to this presentation. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows – (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. ASU 2016-15 is effective for fiscal years, and for interim periods wit hin those years, beginning after December 15, 2017. Early application is permitted. The Company is currently evaluating the potential effect of this ASU on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instr uments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss mod el (referred to as the current expected credit loss (CECL) model). ASU 2016-13 is effective for fiscal years, and for interim periods within those years, beginning after December 15, 2019. Early application is permitted for fiscal periods beginning after December 15, 2018. The Company is currently evaluating the potential effect of this ASU on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement o f Financial Assets and Financial Liabilities. ASU 2016-01 provides guidance for the recognition, measurement, presentation and disclosure of financial assets and financial liabilities. ASU 2016-01 is effective for fiscal years, and for interim periods wi thin those years, beginning after December 15, 2017 and, for most provisions, is effective using the cumulative-effect transition approach. Early application is permitted for certain provisions. The Company is currently evaluating the potential effect of this ASU on its consolidated financial statements. |
Mortgage Backed Securities
Mortgage Backed Securities | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 and December 31, 2016 : (in thousands) June 30, 2017 December 31, 2016 Pass-Through MBS: Fixed-rate Mortgages $ 139,010 $ 124,299 Total Pass-Through MBS 139,010 124,299 Structured MBS: Interest-Only Securities 2,061 2,654 Inverse Interest-Only Securities 1,412 3,349 Total Structured MBS 3,473 6,003 Total $ 142,483 $ 130,302 The following table summarizes the Company’s MBS portfolio as of June 30, 2017 and December 31, 2016 , according to the contractual maturities of the securities in the portfolio . Actual maturities of MBS investments are generally shorter than stated contractual maturities and are affected by the contractual lives of the underlying mortgages, periodic payments of principal, and prepayments of principal. (in thousands) June 30, 2017 December 31, 2016 Greater than or equal to ten years $ 142,483 $ 130,302 Total $ 142,483 $ 130,302 |
Retained Interests In Securitiz
Retained Interests In Securitizations | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 and December 31, 2016 : (in thousands) Series Issue Date June 30, 2017 December 31, 2016 HMAC 2004-2 May 10, 2004 $ 17 $ 143 HMAC 2004-3 June 30, 2004 158 364 HMAC 2004-4 August 16, 2004 381 463 HMAC 2004-5 September 28, 2004 88 144 Total $ 644 $ 1,114 |
Repurchase Agreements
Repurchase Agreements | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Repurchase Agreements [Abstract] | |
Repurchase Agreements | NOTE 4 . REPURCHASE AGREEMENTS As of June 30, 2017 , the Company had outstanding repurchase agreement obligations of approximately $134.6 million with a net weighted average borrowing rate of 1.32% . These agreements were collateralized by MBS with a fair value, including accrued interest, of approximately $142.4 million . As of December 31, 2016 , the Company had outstanding repurchase agreement obligations of approximately $121.8 mil lion with a net weighted average borrowing rate of 0.99% . These agreements were collateralized by MBS with a fair value , including accrued interest, of approximately $130.1 million . As of June 30, 2017 and December 31, 2016 , the Company’s repurchase agreements had remaining maturities as summarized below: ($ in thousands) OVERNIGHT BETWEEN 2 BETWEEN 31 GREATER (1 DAY OR AND AND THAN LESS) 30 DAYS 90 DAYS 90 DAYS TOTAL June 30, 2017 Fair value of securities pledged, including accrued interest receivable $ - $ 80,613 $ 50,367 $ 11,441 $ 142,421 Repurchase agreement liabilities associated with these securities $ - $ 76,479 $ 47,283 $ 10,871 $ 134,633 Net weighted average borrowing rate - 1.34% 1.29% 1.34% 1.32% December 31, 2016 Fair value of securities pledged, including accrued interest receivable $ - $ 71,565 $ 41,334 $ 17,172 $ 130,071 Repurchase agreement liabilities associated with these securities $ - $ 66,919 $ 38,733 $ 16,176 $ 121,828 Net weighted average borrowing rate - 1.01% 0.96% 0.98% 0.99% 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, 2017 and December 31, 2016 , 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 s ecurities and cash pledged (if any), including accrued interest on such securities) with all counterparties of approximately $7.7 million and $8.4 million, respectively. The Company did not have an amount at risk with any individual coun terpart y greater than 10% of the Company’s equity at June 30, 2017 or December 31, 2016 . |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | NOTE 5 . DERIVATIVE FINANCIAL INSTRUMENTS In connection with its interest rate risk management strategy, the Company economically hedges a portion of the cost of its repurchase agreement funding and junior subordinated notes by entering into derivative s and other hedging contracts. To date the Company has entered into Eurodollar and T-Note futures contracts, but may enter into other contracts in the future . The Company has not elected hedging treatment under GAAP, and as s uch all gains or losses (realized and unrealized) on these instruments are reflected in earnings for all periods presented. As of June 30, 2017 and December 31, 2016 , such instruments were comprised entirely of Eurodollar futures contracts . Eurodollar f utures are cash settled futures contracts on an interest rate, with gains or losses credited or charged to the Company’s account on a daily basis and reflected in earnings as they occur. A minimum balance, or “margin”, is required to be maintained in the a ccount on a daily basis. The Company is exposed to the changes in value of the futures by the amount of margin held by the broker. This margin represents the collateral the Company has posted for its open positions and is recorded on the consolidated bala nce sheets as part of restricted cash. The tables below present information related to the Company’s Eurodollar futures positions at June 30, 2017 and December 31, 2016 . ($ in thousands) As of June 30, 2017 Repurchase Agreement Funding Hedges Average Weighted Weighted Contract Average Average Notional Entry Effective Open Expiration Year Amount Rate Rate Equity (1) 2017 $ 60,000 1.49% 1.42% $ (23) 2018 60,000 1.90% 1.68% (134) 2019 60,000 2.32% 1.95% (226) 2020 60,000 2.60% 2.17% (261) 2021 60,000 2.80% 2.37% (259) Total / Weighted Average $ 60,000 2.30% 1.97% $ (903) ($ in thousands) As of June 30, 2017 Junior Subordinated Debt Funding Hedges Average Weighted Weighted Contract Average Average Notional Entry Effective Open Expiration Year Amount Rate Rate Equity (1) 2017 $ 26,000 2.08% 1.42% $ (86) 2018 26,000 1.84% 1.68% $ (43) 2019 26,000 1.63% 1.95% $ 82 2020 26,000 1.95% 2.17% $ 57 2021 26,000 2.22% 2.37% $ 38 Total / Weighted Average $ 26,000 1.93% 1.97% $ 48 ($ in thousands) As of December 31, 2016 Repurchase Agreement Funding Hedges Average Weighted Weighted Contract Average Average Notional Entry Effective Open Expiration Year Amount Rate Rate Equity (1) 2017 $ 60,000 1.32% 1.28% $ (26) 2018 60,000 1.90% 1.82% $ (49) 2019 60,000 2.32% 2.21% $ (69) 2020 60,000 2.60% 2.45% $ (88) 2021 60,000 2.80% 2.64% $ (93) Total / Weighted Average $ 60,000 2.19% 2.08% $ (325) ($ in thousands) As of December 31, 2016 Junior Subordinated Debt Funding Hedges Average Weighted Weighted Contract Average Average Notional Entry Effective Open Expiration Year Amount Rate Rate Equity (1) 2017 $ 26,000 1.93% 1.28% $ (169) 2018 26,000 1.84% 1.82% $ (6) 2019 26,000 1.63% 2.21% $ 150 2020 26,000 1.95% 2.45% $ 132 2021 26,000 2.22% 2.64% $ 110 Total / Weighted Average $ 26,000 1.91% 2.08% $ 217 Open equity represents the cumulative gains ( losses) recorded on open futures positions from inception. Losses 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, 2017 and 2016 (in thousands) Six Months Ended June 30, Three Months Ended June 30, 2017 2016 2017 2016 Eurodollar futures contracts (short positions) $ (810) $ (2,057) $ (831) $ (757) Losses on derivative instruments $ (810) $ (2,057) $ (831) $ (757) 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. The Company attempts to minimize this risk in several ways. For instruments which are not centrally cleared on a registered exchange , the Company limits its counterparties to major financial institutions with acceptable credit ratings , and by m onitoring positions with individual counterparties. In addition, the Company may be required to pledge assets as collateral for its derivatives, whose amounts vary over time based on the market value, notional amount and remaining term of the derivative co ntract. In the event of a default by a counterparty, the Company may not receive payments provided for under the terms of its derivative agreements, and may have difficulty obtaining its assets pledged as collateral for its derivatives. The cash and cash e quivalents pledged as collateral for the Company’s derivative instruments are included in restricted cash on the consolidated balance sheets. |
Pledged Assets
Pledged Assets | 6 Months Ended |
Jun. 30, 2017 | |
Pledged Assets [Abstract] | |
Pledged Assets [Text Block] | NOTE 6 . PLEDGED ASSETS Assets Pledged to Counterparties The table below summarizes our assets pledged as collateral under our repurchase agreements and derivative agreements pledged related to securities sold but not yet settled, as of June 30, 2017 and December 31, 2016 . ($ in thousands) As of June 30, 2017 Repurchase Derivative Assets Pledged to Counterparties Agreements Agreements Total PT MBS - at fair value $ 139,010 $ - $ 139,010 Structured MBS - at fair value 2,890 - 2,890 Accrued interest on pledged securities 521 - 521 Cash 15 574 589 Total $ 142,436 $ 574 $ 143,010 ($ in thousands) As of December 31, 2016 Repurchase Derivative Assets Pledged to Counterparties Agreements Agreements Total PT MBS - at fair value $ 124,298 $ - $ 124,298 Structured MBS - at fair value 5,284 - 5,284 Accrued interest on pledged securities 489 - 489 Cash 456 766 1,222 Total $ 130,527 $ 766 $ 131,293 |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 6 Months Ended |
Jun. 30, 2017 | |
Offsetting [Abstract] | |
Offsetting Assets And Liabilities [Text Block] | NOTE 7 . 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 arrang ements as if the Company had presented them on a net basis as of June 30, 2017 and December 31, 2016 . (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, 2017 Repurchase Agreements $ 134,633 $ - $ 134,633 $ (134,618) $ (15) $ - December 31, 2016 Repurchase Agreements $ 121,828 $ - $ 121,828 $ (121,372) $ (456) $ - 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 Note 6 for a discussion of collateral posted for, or received against, repurchase obliga tions and derivative instruments. |
Trust Preferred Securities
Trust Preferred Securities | 6 Months Ended |
Jun. 30, 2017 | |
Trust Preferred Securities [Abstract] | |
Trust Preferred Securities | NOTE 8 . 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, 2017 and December 31, 2016 , 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, 2017 , the interest rate was 4.75% . The BCTII trust preferred securities and Bimini Capital's BCTII Junior Subordinated Notes require quarterly interest distributions and are redeemable at Bimini Capital's option, in whole or in part and without penalty. Bimini Capital's BCTII Junior Subordinated Notes are subordinate and junior in right of payment of all prese nt 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 finance d 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 interest, Bimini Capital is not t he primary beneficiary of BCTII. Therefore, Bimini Capital has not consolidated the financial statements of BCTII into its consolidated financial statements, and this investment is accounted for on the equity method . The accompanying consolidated financial statements present Bimini Capital's BCTII Junior Subordin ated 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 interest on the Junior Subordin ated Notes issued to BCTII as interest expense. |
Capital Stock
Capital Stock | 6 Months Ended |
Jun. 30, 2017 | |
Capital Stock [Abstract] | |
Capital Stock | NOTE 9. COMMON STOCK The table below presents information related to Bimini Capital’s Class A Common Stock issued during the six and three months ended June 30, 2017 and 2016 . Six Months Ended June 30, Three Months Ended June 30, Shares Issued Related To: 2017 2016 2017 2016 Vested incentive plan shares - 258,333 - - Total shares of Class A Common Stock issued - 258,333 - - There were no issuances of Bimini Capital 's Class B Common Stock and Class C Common Stock during the six months ended June 30, 2017 and 2016 . |
Stock Incentive Plans
Stock Incentive Plans | 6 Months Ended |
Jun. 30, 2017 | |
Employee Benefits And Share Based Compensation [Abstract] | |
Stock incentive Plans | NOTE 10 . 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 interest s 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 During the three months ended March 31, 2016 , 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 service in 2015. The bonuses consisted of cash of approximately $0.5 million and 258,333 fully vested shares of the Company’s Class A Common Sto ck with an approximate value of $0.2 million, or $0.75 per share. The shares were issued under the 2011 Plan. For purposes of these bonuses, shares of the Company’s common stock were valued based on the closing price of the Company’s Class A Common Stock on January 15, 2016, the bonus date. The expense related to this bonus was accrued at December 31, 2015 and does not affect the results of operations for the six and three months ended June 30, 2016 . Performance Units The Committee may issue Performance Units under the 2011 Plan to certain officers and employees. “Performance Units” represent the participant’s right to receive an amount, based on the value of a specified number of shares of common stock, if the terms and conditions prescribed by the Committee are satisfied. The Committee will determine the requirements that must be satisfied before Performance Units are earned, including but not limited to any applicable performance period and performance goals. Performance goals may relate to the Company’s financial performance or the participant’s performance or such other criteria determined by the Committee, including goals stated with reference to the performance measures discussed below. If Performance Units are earned, they will be settled in cash, shares of common stock or a combination thereof. The following table presents the activity related to Performance Units during the six months ended June 30, 2017 and 2016 : ($ in thousands, except per share data) Six Months Ended June 30, 2017 2016 Weighted Weighted Average Average Grant Date Grant Date Shares Fair Value Shares Fair Value Unvested, beginning of period 70,000 $ 1.23 77,500 $ 1.22 Granted - - - - Vested and issued - - - - Unvested, end of period 70,000 $ 1.23 77,500 $ 1.22 Compensation expense during the period $ 14 $ 16 Unrecognized compensation expense at period end $ 25 $ 59 Weighted-average remaining vesting term (in years) 1.0 2.0 Intrinsic value of unvested shares at period end $ 196 $ 107 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | NOTE 11 . COMMITMENTS AND CONTINGENCIES From time to time, the Company may become involved in various claims and legal actions arising in the ordinary course of business. Management is not aware of any significant reported or unreported contingencies at June 30, 2017 . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 12 . INCOME TAXES The total income tax provision recorded for the six months ended June 30, 2017 and 2016 was $ 0.3 million and $0.7 million, respectively, on consolidated pre-tax book income of $ 0.7 million and $ 1.7 million in the six months ended June 30, 2017 and 2016 , respectively. The total income tax provision recorded for the three months ended June 30, 2017 and 2016 was $ 0.4 million and $0.4 million, respectively, on consolidated pre-tax book income of $ 1.1 million and $ 1.0 million in the three months ended June 30, 2017 and 2016 , respectively. The Company ’s tax provision is based on a projected effective rate based annualized amounts and includes the expected realiz ation of a portion of the tax benefits of feder al and state net operating losses carryforwards (“NOLs”) . 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 capital loss and NOL carryforwards is dependent upon the generation of future capital gains and taxable income in periods prior to their expiration. The Company currently provides a valuation allowance against a portion of the NOLs since the Company believes that it is more likely than not that some of the benefits will not be realized in the future. The Company will continue to assess the need for a valuation allowance at each reporting date. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 13 . EARNINGS PER SHARE Shares of Class B common stock , participating and convertible into Class A common stock , are entitled to receive dividends in an amount equal to the dividends declared on each share of Class A common stock if, and when, authorized and declared by the Board of Directors. Following the provisions of FASB ASC 260, the Class B common stock is included in the computation of basic EPS using the two-class method, and consequently is presented separately from Class A common stock . Shares of Class B common stock are not included in the computation of diluted Class A EPS as the conditions for conversion to Class A common stock were not met at June 30, 2017 and 2016 . Shares of Class C common stock are not included in the basic EPS computation as these shares do not have participation rights. Shares of Class C common stock are not included in the computation of diluted Class A EPS as the conditions for conversion to Class A common stock were not met at June 30, 2017 and 2016 . The Company has dividend eligible stock incentive plan shares that were outstanding during the six and three months ended June 30, 2017 . The basic and diluted per share computations include these unvested incentive plan shares if there is income available to Class A common stock , as they have dividend participation rights. The stock incentive plan shares have no contractual obligation to share in losses. Because there is no such obligation, the incentive plan shares are not includ ed 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, 2017 and 2016 . (in thousands, except per-share information) Six Months Ended June 30, Three Months Ended June 30, 2017 2016 2017 2016 Basic and diluted EPS per Class A common share: Income attributable to Class A common shares: Basic and diluted $ 434 $ 1,045 $ 647 $ 600 Weighted average common shares: Class A common shares outstanding at the balance sheet date 12,632 12,632 12,632 12,632 Unvested dividend-eligible stock incentive plan shares outstanding at the balance sheet date 70 78 70 78 Effect of weighting - (22) - (1) Weighted average shares-basic and diluted 12,702 12,688 12,702 12,709 Income per Class A common share: Basic and diluted $ 0.03 $ 0.08 $ 0.05 $ 0.05 (in thousands, except per-share information) Six Months Ended June 30, Three Months Ended June 30, 2017 2016 2017 2016 Basic and diluted EPS per Class B common share: Income attributable to Class B common shares: Basic and diluted $ 1 $ 3 $ 2 $ 2 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 Income per Class B common share: Basic and diluted $ 0.03 $ 0.08 $ 0.05 $ 0.05 |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 14 . 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 its MBS positions determined by either an independent third-party or could do so internally. MBS, Orchid common stock, retained interests and futures contracts were all recorded at fair value on a recurring basis during the six and three months ended June 30, 2017 and 2016 . When determining fair value measurements, the Company considers the principal or most advantageous market in which it w ould transact and considers assumptions that market participants would use when pricing the asset. When possible, the Company looks to active and observable markets to price identical assets. When identical assets are not traded in active markets, the Com pany 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, 2017 and December 31, 2016 : (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, 2017 Mortgage-backed securities $ 142,483 $ - $ 142,483 $ - Margin posted on derivative agreements 574 574 - - Orchid Island Capital, Inc. common stock 14,988 14,988 - - Retained interests 644 - - 644 December 31, 2016 Mortgage-backed securities $ 130,302 $ - $ 130,302 $ - Margin posted on derivative agreements 766 766 - - Orchid Island Capital, Inc. common stock 15,108 15,108 - - Retained interests 1,114 - - 1,114 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, 2017 and 2016 : (in thousands) Retained Interests Six Months Ended June 30, 2017 2016 Balances, January 1 $ 1,114 $ 1,124 Gain included in earnings 304 1,080 Collections (774) (845) Balances, June 30 $ 644 $ 1,359 During the six months ended June 30, 2017 and 2016 , 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, 2017 . Retained interests fair value (in thousands) $ 644 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% 33.5% Next 10 Months Loans in Foreclosure 100% 33.5% 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 2.8% 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 12.2 - 15.6 (12.9) 27.50% (27.50%) Discounted Cash Flows Discounted Cash Flow 1.3 - 15.2 (2.5) 27.50% (27.50%) |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 15. RELATED PARTY TRANSACTIONS Management Agreement Orchid is externally managed and advised by Bimini Advisors pursuant to the terms of a management agreement. As Manager, Bimini Advisors is responsible for administering Orchid's busine ss activities and day-to-day operations. Pursuant to the terms of the management agreement, Bimini Advisors provides Orchid with its management team, including its officers, along with appropriate support personnel. Bimini Advisors is at all times subject to the supervision and oversight of Orchid's board of directors and has only such functions and authority as delegated to it. Bimini Advisors receives a monthly management fee in the amount of: One-twelfth of 1.5% of the first $250 million of the Orchid’s equity, as defined in the management agreement, One-twelfth of 1.25% of the Orchid’s equity that is greater than $250 million and less than or equal to $500 million, and One-twelfth of 1.00% of the Orchid’s equity that is greater than $500 million. Orchi d is obligated to reimburse Bimini Advisors for any direct expenses incurred on its behalf and to pay to Bimini Advisors an amount equal to Orchid's pro rata portion of certain overhead costs set forth in the management agreement. The management agreement has been renewed through February 20, 2018 and provides for automatic one-year extension options thereafter . Should Orchid termina te the management agreement without cause, it will pay to Bimini Advisors a termination fee equal to three times the average annual management fee, as defined in the management agreement, before or on the last day of the current automatic renewal t erm. The following table summarizes the advisory services revenue from Orchid for the six and three months ended June 30, 2017 and 2016 . (in thousands) Six Months Ended June 30, Three Months Ended June 30, 2017 2016 2017 2016 Management fee $ 2,702 $ 1,916 $ 1,400 $ 945 Allocated overhead 756 626 388 329 Total $ 3,458 $ 2,542 $ 1,788 $ 1,274 At June 30, 2017 and December 31, 2016 , the net amount due from Orchid was approximately $0.7 million and $0. 6 million, respectively , and such amounts are included in “other assets” in the consolidated balance sheets. Orchid accrued cash and equity compensation payable to officers and employees of Bimini of $ 0.2 million and $ 0.2 million d uring the six and three months ended June 30, 2017 , respectively and $0.4 million and $0.2 million during the six and three months ended June 30, 2016 , respectively . This compensation is not included in the consolidated statements of operations . Other Relationships with Orchid At June 30, 2017 and December 31, 2016 , the Company owned 1, 520,036 and 1,395,036 shares of Orchid common stock , respectively, representing appr oximately 3 .4% and 4.2 % of the outstanding shares , respectively . T he Company received dividends on this common stock investment of approximately $1.2 million and $ 0.6 million d uring the six and three months ended June 30, 2017 , respectively, and approximately $1.2 million and $0.6 million during the six and three months ended June 30, 2016 , respectively. Robert Cauley, the Chief Executive Officer and Chairman of the Board of Directors of the Company, also serves as Chief Executive Officer and Chairm an of the Board of Directors of Orchid, receives compensation from Orchid, and owns shares of common stock of Orchid. In addition, Hunter Haas, the Chief Financial Officer, Chief Investment Officer and Treasurer of the Company, also serves as Chief Financ ial Officer, Chief Investment Officer and Secretary of Orchid, is a member of Orchid’s Board of Directors, receives compensation from Orchid, and owns shares of common stock of Orchid. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation The accompanying consolidated financial statements include the accounts of Bimini Capital, its wholly-owned subsidiaries, Bimini Advisors Holdings, LLC (formerly known as Bimini Advisors, Inc.) and Royal Palm Capital, LLC (formerly known as MortCo TRS, LLC). Bimini Advisors Holdings, LLC and its wholly-owned subsidiary, Bimini Advisors, LLC are collectively referred to as "Bimini Advisors. " Royal Palm Capital, LLC and its wholly-owned subsidiaries are collectively referred to as "Royal Palm." All inter-company accounts and transactions have been eliminated from the consolidated financial statements. Financial Accounting Standards Board ( the "FASB") Accounting Standards Codification ("ASC") Topic 810, Consolidation, requires the consolidation of a variable interest entity ("VIE") by an enterprise if it is deemed the primary beneficiary of the VIE. Bimini Capital has a common share investme nt in a trust used in connection with the issuance of Bimini Capital's junior subordinated notes. See Note 8 for a description of the accounting used for this VIE. |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed 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 incl ude 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. Operatin g results fo r the six and three month periods ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year end ing December 31, 2017 . The consolidated balance sheet at December 31, 2016 has been derived from the aud ited 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, 2016 . |
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 a ssets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates affecting the accompanying consolidated financial statements include the fair values of MBS, investment in Orchid common shares, derivatives, retained interests, asset valuation allowances and deferred tax asset allowances recorded for each accou nting period. |
Statement of Comprehensive Income | Statement of Comprehensive Income In accordance with ASC Topic 220, Comprehensive Income , a statement of comprehensive income has not been included as the Company has no items of other comprehensive income (loss) . Comprehensive income is the same as net income for all periods presented. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents include cash on deposit with financial institutions and highly liquid investments with original maturities of three months or less at the time of purchase. Restricted cash includes cash pledged as collateral for repurchase agreements and derivative instruments. (in thousands) June 30, 2017 December 31, 2016 Cash and cash equivalents $ 6,398,651 $ 4,429,459 Restricted cash 588,620 1,221,978 Total cash, cash equivalents and restricted cash $ 6,987,271 $ 5,651,437 The Company maintains cash balances at several banks, and at times, these balances may exceed federally insured limits. The Company has not experienced any losses related to these balances. The Federal Deposit Insurance Corporation insures eligible accounts up to $250,000 per depositor at each financial institution. At June 30, 2017 , the Company’s cash deposits exceeded federally insured limits by approximately $4.6 million. Restricted cash balances are uninsured, but are held in sep arate 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 believes that it is not exposed to significant credit risk on c ash 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- onl y (“IIO”) securities representing interest in or obligations backed by pools of mortgage-backed loans. 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 reporting period and is consistent with the underlying economi cs 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 s old 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 base d 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 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 betwe en income accrued and the interest received on the security is characterized as a return of investment and serves to reduce the asset’s carrying value. At each reporting date, the effective yield is adjusted prospectively from the reporting period based on the new estimate of prepayments and the contractual terms of the security. For IIO securities, effective yield and income recognition calculations also take into account the index value applicable to the security. Changes in fair value of MBS during eac h 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 during the period. |
Investment In Orchid [Policy Text Block] | Orchid Island Capital, Inc. Common Stock The Company has elected the fair value option for its 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 consolidated statements of operations. We estimate th e 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 on a national stock exchange. 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, mo re appropriately reflects the results of our operations for a particular reporting period and is consistent with how the investment is managed. |
Advisory Services [Policy Tex Block] | Advisory Services Orchid is externally managed and advised by Bimini Advisors pursuant to the terms of a management agreement. Under the terms of the management agreement , Orchid is obligated to pay Bimini Advisors a monthly management fee and a pro rata portion of certain overhead costs and to reimburse the Company for any direct expenses incurred on its behalf. |
Retained Interests | Retained Interests in Securitizations Retained interests in the subordinated tranches of securities created in securitization transactions were initially recorded at their fair value when issued by Royal Palm. Subsequent adjustments to fair value are reflected in earnings. Quoted market prices for these assets are generally not available, so the Company estimates fair value based on the present value of expected future cash flows using management’s best estimates of key assumptions, which include expected credit losses, prepayment speeds, weighted-average life, and discount rates commensurate with the inherent risks of the asset. |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses derivative instruments to manage interest rate risk, facilitate asset/liability strategies and manage other exposures, and it may continue to do so in the future. The principal instruments that the Company has used to date are Treasury Note (“ T-Note”) and Eurodollar futures contracts, but the Company may enter into other transactions in the future. The Company has elected not to treat any of its derivative financial instruments as hedges in order to align the accounting treatment of its deri vative instruments with the treatment of its portfolio assets under the fair value option. FASB ASC Topic 815, Derivatives and Hedging , requires that all derivative instruments 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, the Company may be required to post collateral based on any declines in the marke t 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 under the terms of the agreement. To mitigate this risk, the Company uses only 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 common stock, Eurodollar futures contracts, interest rate swaptions and retained interests in securitization transactions are accounted for at fair value in the consolidated balance sheets. The methods and assumptions used to estimate fair value for these instruments are presented in Note 14 of the consolidated financial statements. The estimated fair value of cash and cash equivalents, restricted cash, accrued interest receivable, other asse ts, repurchase agreements, accrued interest payable and other liabilities generally approximates their carrying value as of June 30, 2017 and December 31, 2016 , due to the short-term nature of these financial in struments. It is impractical to estimate the fair value of the Company’s junior subordinated notes. Currently, there is a limited market for these types of instruments and the Company is unable to ascertain what interest rates would be available to the Company for similar financial instruments. Information regarding carrying amount and effective interest rate for these instruments is presented in Note 8 to the consolidated financial statements. |
Property and Equipment, net | Property and Equipment, net Property and equipment, net, consists of computer equipment with a depreciable life of 3 years, office furniture and equipment with depreciable lives of 8 to 20 years, land which has no depreciable life, and buildings and improvements with depreciable lives of 30 years. Property and equipment is recorded at acquisition cost and depreciated using the straight-line method over the estimated useful lives of the assets. |
Repurchase Agreements | Repurchase Agreements The Company finances the acquisition of the majority of its PT MBS through the use of repur chase 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 Com pany 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. 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 Comp any’s common stock or other equity instruments, the transactions are recorded on the basis of the fair value of the service received or the fair value of the equity instruments issued, whichever is more readily measurable at the date of issuance. |
Earnings Per Share | Earnings Per Share The Company follows the provisions of ASC Topic 260, Earnings Per Share , which requires companies with complex capital structures, common stock equivalents or two (or more) classes of securities that participate in dividend distributions to present both basic and diluted earnings per share (“EPS”) on the face of the consolidated statement of operations. Basic EPS is calculated as income available to common stockholders divided by the weighted average number of common shares outstanding du ring the period. Diluted EPS is calculated using the treasury stock or two-class method, as applicable for common stock equivalents. However, the common stock equivalents are not included in computing diluted EPS if the result is anti-dilutive. Outstandin g 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 B oard 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 in cluded in the basic EPS computation as these shares do not have participation rights. The outstanding shares of Class B and Class C Common Stock are not included in the computation of diluted EPS for the Class A Common Stock as the conditions for conversio n into shares of Class A Common Stock were not met. |
Income Taxes | Income Taxes For the calendar year ended December 31, 2015, Bimini Capital, Bimini Advisors, Inc. and Royal Palm were separate taxpaying entities for income tax purposes and filed separate Federal income tax returns. Bimini Advisors, Inc. remained a separate tax paying entity through January 31, 2016; on that date, Bimini Advisors, Inc. was reorganized (as Bimini Advisors Holdings, LLC) to be an LLC wholly-owned by Bimini Capital. Beginning with the tax period starting on February 1, 2016, Bimini Capital and Bimini Advisors are combined as a single tax paying entity. Royal Palm continues to be treated as a separate tax paying entity. Income taxes are provided for using the asset and liability method. Deferred tax assets and liabilities represent the differences between the financial statement and income tax bases of assets and liabilities using enacted tax rates. The measurement of net deferred tax assets is adjusted by a valuation allowance if, based on the Company’s evaluation, it is more likely than not that they will not be realized. The Company’s U.S. federal income tax returns for years ended on or after December 31, 2013 rema in open for examination. Although management believes its calculations for tax returns are correct and the positions taken thereon are reasonable, the final outcome of tax audits could be materially different from the tax returns filed by the Company, and those differences could result in significant costs or benefits to the Company. The Company measures, recognizes and presents its uncertain tax positions in accordance with ASC Topic 740, Income Taxes . Under that guidance, the Company assesses the likeli hood, 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. The Company recognizes tax positions in the financial statements only when it is more likely than not that the position will be sustained upon examination by the relevant taxing authority based on the technical merits of the position. A position that meets this standard is measured at the largest amount of benefit that will more likely than not be realized upon settlement. The difference between the benefit recognized and the tax benefit claimed on a tax return is referred to as an unrecognized tax benefit and is recorded as a liability in the consolidated balance sheets. The Company records income tax-related interest and penalties, if applicable, within the income tax provision. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-18, Statement of Cash Flows – (Topic 230): Restricted Cash. ASU 2016-18 requires that restricted cash and restricted cash equivalents be included as compo nents of total cash and cash equivalents as presented on the statement of cash flows. ASU 2016-18 is effective for fiscal years, and for interim periods within those years, beginning after December 15, 2017. Early application is permitted. The Company ad opted the ASU beginning with the first quarter of 2017. The prior period consolidated statement of cash flows has been retrospectively adjusted to conform to this presentation. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows – (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. ASU 2016-15 is effective for fiscal years, and for interim periods wit hin those years, beginning after December 15, 2017. Early application is permitted. The Company is currently evaluating the potential effect of this ASU on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instr uments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss mod el (referred to as the current expected credit loss (CECL) model). ASU 2016-13 is effective for fiscal years, and for interim periods within those years, beginning after December 15, 2019. Early application is permitted for fiscal periods beginning after December 15, 2018. The Company is currently evaluating the potential effect of this ASU on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement o f Financial Assets and Financial Liabilities. ASU 2016-01 provides guidance for the recognition, measurement, presentation and disclosure of financial assets and financial liabilities. ASU 2016-01 is effective for fiscal years, and for interim periods wi thin those years, beginning after December 15, 2017 and, for most provisions, is effective using the cumulative-effect transition approach. Early application is permitted for certain provisions. The Company is currently evaluating the potential effect of this ASU on its consolidated financial statements. |
Mortgage-Backed Securities (Tab
Mortgage-Backed Securities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Mortgage Backed Securities [Abstract] | |
Schedule of Mortgage-Backed Securities Reconciliation | (in thousands) June 30, 2017 December 31, 2016 Pass-Through MBS: Fixed-rate Mortgages $ 139,010 $ 124,299 Total Pass-Through MBS 139,010 124,299 Structured MBS: Interest-Only Securities 2,061 2,654 Inverse Interest-Only Securities 1,412 3,349 Total Structured MBS 3,473 6,003 Total $ 142,483 $ 130,302 |
Schedule Of Mortgage-Backed Securities by Contractual Maturity | (in thousands) June 30, 2017 December 31, 2016 Greater than or equal to ten years $ 142,483 $ 130,302 Total $ 142,483 $ 130,302 |
Retained Interests In Securit24
Retained Interests In Securitizations (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Retained Interests In Securitizations [Abstract] | |
Schedule of Retained Interests In Securitizations | (in thousands) Series Issue Date June 30, 2017 December 31, 2016 HMAC 2004-2 May 10, 2004 $ 17 $ 143 HMAC 2004-3 June 30, 2004 158 364 HMAC 2004-4 August 16, 2004 381 463 HMAC 2004-5 September 28, 2004 88 144 Total $ 644 $ 1,114 |
Repurchase Agreements (Tables)
Repurchase Agreements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 Fair value of securities pledged, including accrued interest receivable $ - $ 80,613 $ 50,367 $ 11,441 $ 142,421 Repurchase agreement liabilities associated with these securities $ - $ 76,479 $ 47,283 $ 10,871 $ 134,633 Net weighted average borrowing rate - 1.34% 1.29% 1.34% 1.32% December 31, 2016 Fair value of securities pledged, including accrued interest receivable $ - $ 71,565 $ 41,334 $ 17,172 $ 130,071 Repurchase agreement liabilities associated with these securities $ - $ 66,919 $ 38,733 $ 16,176 $ 121,828 Net weighted average borrowing rate - 1.01% 0.96% 0.98% 0.99% |
Derivative Financial Instrume26
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Eurodollar Futures Positions | ($ in thousands) As of June 30, 2017 Repurchase Agreement Funding Hedges Average Weighted Weighted Contract Average Average Notional Entry Effective Open Expiration Year Amount Rate Rate Equity (1) 2017 $ 60,000 1.49% 1.42% $ (23) 2018 60,000 1.90% 1.68% (134) 2019 60,000 2.32% 1.95% (226) 2020 60,000 2.60% 2.17% (261) 2021 60,000 2.80% 2.37% (259) Total / Weighted Average $ 60,000 2.30% 1.97% $ (903) ($ in thousands) As of June 30, 2017 Junior Subordinated Debt Funding Hedges Average Weighted Weighted Contract Average Average Notional Entry Effective Open Expiration Year Amount Rate Rate Equity (1) 2017 $ 26,000 2.08% 1.42% $ (86) 2018 26,000 1.84% 1.68% $ (43) 2019 26,000 1.63% 1.95% $ 82 2020 26,000 1.95% 2.17% $ 57 2021 26,000 2.22% 2.37% $ 38 Total / Weighted Average $ 26,000 1.93% 1.97% $ 48 ($ in thousands) As of December 31, 2016 Repurchase Agreement Funding Hedges Average Weighted Weighted Contract Average Average Notional Entry Effective Open Expiration Year Amount Rate Rate Equity (1) 2017 $ 60,000 1.32% 1.28% $ (26) 2018 60,000 1.90% 1.82% $ (49) 2019 60,000 2.32% 2.21% $ (69) 2020 60,000 2.60% 2.45% $ (88) 2021 60,000 2.80% 2.64% $ (93) Total / Weighted Average $ 60,000 2.19% 2.08% $ (325) ($ in thousands) As of December 31, 2016 Junior Subordinated Debt Funding Hedges Average Weighted Weighted Contract Average Average Notional Entry Effective Open Expiration Year Amount Rate Rate Equity (1) 2017 $ 26,000 1.93% 1.28% $ (169) 2018 26,000 1.84% 1.82% $ (6) 2019 26,000 1.63% 2.21% $ 150 2020 26,000 1.95% 2.45% $ 132 2021 26,000 2.22% 2.64% $ 110 Total / Weighted Average $ 26,000 1.91% 2.08% $ 217 |
Income Statement Effect of Derivatives [Table Text Block] | (in thousands) Six Months Ended June 30, Three Months Ended June 30, 2017 2016 2017 2016 Eurodollar futures contracts (short positions) $ (810) $ (2,057) $ (831) $ (757) Losses on derivative instruments $ (810) $ (2,057) $ (831) $ (757) |
Pledged Assets (Tables)
Pledged Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Pledged Assets [Abstract] | |
Assets Pledged to Counterparties [Table Text Block] | ($ in thousands) As of June 30, 2017 Repurchase Derivative Assets Pledged to Counterparties Agreements Agreements Total PT MBS - at fair value $ 139,010 $ - $ 139,010 Structured MBS - at fair value 2,890 - 2,890 Accrued interest on pledged securities 521 - 521 Cash 15 574 589 Total $ 142,436 $ 574 $ 143,010 ($ in thousands) As of December 31, 2016 Repurchase Derivative Assets Pledged to Counterparties Agreements Agreements Total PT MBS - at fair value $ 124,298 $ - $ 124,298 Structured MBS - at fair value 5,284 - 5,284 Accrued interest on pledged securities 489 - 489 Cash 456 766 1,222 Total $ 130,527 $ 766 $ 131,293 |
Offsetting Assets and Liabiltie
Offsetting Assets and Liabilties (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 Repurchase Agreements $ 134,633 $ - $ 134,633 $ (134,618) $ (15) $ - December 31, 2016 Repurchase Agreements $ 121,828 $ - $ 121,828 $ (121,372) $ (456) $ - |
Capital Stock (Tables)
Capital Stock (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Capital Stock [Abstract] | |
Issuances of Common Stock | Six Months Ended June 30, Three Months Ended June 30, Shares Issued Related To: 2017 2016 2017 2016 Vested incentive plan shares - 258,333 - - Total shares of Class A Common Stock issued - 258,333 - - |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Employee Benefits And Share Based Compensation [Abstract] | |
Performance Units Table Text Block | ($ in thousands, except per share data) Six Months Ended June 30, 2017 2016 Weighted Weighted Average Average Grant Date Grant Date Shares Fair Value Shares Fair Value Unvested, beginning of period 70,000 $ 1.23 77,500 $ 1.22 Granted - - - - Vested and issued - - - - Unvested, end of period 70,000 $ 1.23 77,500 $ 1.22 Compensation expense during the period $ 14 $ 16 Unrecognized compensation expense at period end $ 25 $ 59 Weighted-average remaining vesting term (in years) 1.0 2.0 Intrinsic value of unvested shares at period end $ 196 $ 107 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (in thousands, except per-share information) Six Months Ended June 30, Three Months Ended June 30, 2017 2016 2017 2016 Basic and diluted EPS per Class A common share: Income attributable to Class A common shares: Basic and diluted $ 434 $ 1,045 $ 647 $ 600 Weighted average common shares: Class A common shares outstanding at the balance sheet date 12,632 12,632 12,632 12,632 Unvested dividend-eligible stock incentive plan shares outstanding at the balance sheet date 70 78 70 78 Effect of weighting - (22) - (1) Weighted average shares-basic and diluted 12,702 12,688 12,702 12,709 Income per Class A common share: Basic and diluted $ 0.03 $ 0.08 $ 0.05 $ 0.05 (in thousands, except per-share information) Six Months Ended June 30, Three Months Ended June 30, 2017 2016 2017 2016 Basic and diluted EPS per Class B common share: Income attributable to Class B common shares: Basic and diluted $ 1 $ 3 $ 2 $ 2 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 Income per Class B common share: Basic and diluted $ 0.03 $ 0.08 $ 0.05 $ 0.05 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 Mortgage-backed securities $ 142,483 $ - $ 142,483 $ - Margin posted on derivative agreements 574 574 - - Orchid Island Capital, Inc. common stock 14,988 14,988 - - Retained interests 644 - - 644 December 31, 2016 Mortgage-backed securities $ 130,302 $ - $ 130,302 $ - Margin posted on derivative agreements 766 766 - - Orchid Island Capital, Inc. common stock 15,108 15,108 - - Retained interests 1,114 - - 1,114 |
Changes is Level 3 Assets Measured at Fair Value on a Recurring Basis | (in thousands) Retained Interests Six Months Ended June 30, 2017 2016 Balances, January 1 $ 1,114 $ 1,124 Gain included in earnings 304 1,080 Collections (774) (845) Balances, June 30 $ 644 $ 1,359 |
Quantitative Information About Level 3 Fair Value Measurements | Retained interests fair value (in thousands) $ 644 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% 33.5% Next 10 Months Loans in Foreclosure 100% 33.5% 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 2.8% 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 12.2 - 15.6 (12.9) 27.50% (27.50%) Discounted Cash Flows Discounted Cash Flow 1.3 - 15.2 (2.5) 27.50% (27.50%) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Advisory Fee Income [Table Text Block] | (in thousands) Six Months Ended June 30, Three Months Ended June 30, 2017 2016 2017 2016 Management fee $ 2,702 $ 1,916 $ 1,400 $ 945 Allocated overhead 756 626 388 329 Total $ 3,458 $ 2,542 $ 1,788 $ 1,274 |
Significant Accounting Policies
Significant Accounting Policies (Organization) (Details) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Entity Incorporation, Date of Incorporation | Sep. 24, 2003 |
Entity Incorporation, State Country Name | Maryland |
Significant Accounting Polici35
Significant Accounting Policies - Property and Equipment (Details) | 6 Months Ended |
Jun. 30, 2017 | |
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 Polici36
Significant Accounting Policies - Cash (Details) | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Accounting Policies [Abstract] | |
Uninsured Cash | $ 4,600,000 |
Federal Deposit Insurance Corporation Per Depositor Limit | $ 250,000 |
Significant Accounting Polici37
Significant Accounting Policies - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 6,398,651 | $ 4,429,459 | ||
Restricted cash | 588,620 | 1,221,978 | ||
Cash Cash Equivalents And Restricted Cash | $ 6,987,271 | $ 5,651,437 | $ 4,442,225 | $ 6,712,483 |
Mortgage-Backed Securities - By
Mortgage-Backed Securities - By Type (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair Value | $ 142,482,975 | $ 130,301,989 |
Total Pass Through Certificates [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair Value | 139,010,000 | 124,299,000 |
Total Strucutured Certificates [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair Value | 3,473,000 | 6,003,000 |
Fixed-rate Mortgages [Member] | Total Pass Through Certificates [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair Value | 139,010,000 | 124,299,000 |
Interest Only Securities [Member] | Total Strucutured Certificates [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair Value | 2,061,000 | 2,654,000 |
Inverse Interest Only Securities [Member] | Total Strucutured Certificates [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair Value | $ 1,412,000 | $ 3,349,000 |
Mortgage-Backed Securities - 39
Mortgage-Backed Securities - By Maturity (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Mortgage Backed Securities [Abstract] | ||
Greater than or equal to ten years | $ 142,483,000 | $ 130,302,000 |
Total mortgage-backed securities | $ 142,482,975 | $ 130,301,989 |
Retained Interests In Securit40
Retained Interests In Securitizations (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Retained Interestes Securitzations [Line Items] | ||
Retained interests in securitizations | $ 644,128 | $ 1,113,736 |
HMAC 2004-2 [Member] | ||
Retained Interestes Securitzations [Line Items] | ||
Issue Date | May 10, 2004 | |
Retained interests in securitizations | $ 17,000 | 143,000 |
HMAC 2004-3 [Member] | ||
Retained Interestes Securitzations [Line Items] | ||
Issue Date | June 30, 2004 | |
Retained interests in securitizations | $ 158,000 | 364,000 |
HMAC 2004-4 [Member] | ||
Retained Interestes Securitzations [Line Items] | ||
Issue Date | August 16, 2004 | |
Retained interests in securitizations | $ 381,000 | 463,000 |
HMAC 2004-5 [Member] | ||
Retained Interestes Securitzations [Line Items] | ||
Issue Date | September 28, 2004 | |
Retained interests in securitizations | $ 88,000 | $ 144,000 |
HMAC 2006-6 [Member] | ||
Retained Interestes Securitzations [Line Items] | ||
Issue Date | November 17, 2004 |
Repurchase Agreements - Narrati
Repurchase Agreements - Narrative (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Disclosure of Repurchase Agreements [Abstract] | ||
Repurchase agreements | $ 134,632,521 | $ 121,827,586 |
Repurchase Agreements Weighted Average Borrowing Rates | 1.32% | 0.99% |
Fair Value of securities pledged, including accrued interest receivable | $ 142,421,000 | $ 130,071,000 |
Repurchase Agreement Counterparty, Amount at Risk | $ 7,700,000 | $ 8,400,000 |
Repurchase Agreements - Maturit
Repurchase Agreements - Maturities (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Fair Value of securities pledged, including accrued interest receivable | $ 142,421,000 | $ 130,071,000 |
Repurchase agreements | $ 134,632,521 | $ 121,827,586 |
Net weighted average borrowing rate | 1.32% | 0.99% |
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 | $ 80,613,000 | $ 71,565,000 |
Repurchase agreements | $ 76,479,000 | $ 66,919,000 |
Net weighted average borrowing rate | 1.34% | 1.01% |
Between 31 and 90 Days [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Fair Value of securities pledged, including accrued interest receivable | $ 50,367,000 | $ 41,334,000 |
Repurchase agreements | $ 47,283,000 | $ 38,733,000 |
Net weighted average borrowing rate | 1.29% | 0.96% |
Greater Than 90 days [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Fair Value of securities pledged, including accrued interest receivable | $ 11,441,000 | $ 17,172,000 |
Repurchase agreements | $ 10,871,000 | $ 16,176,000 |
Net weighted average borrowing rate | 1.34% | 0.98% |
Derivative Financial Instrume43
Derivative Financial Instruments - Eurodollar Details (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Junior Subordinated Debt [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 26,000,000 | $ 26,000,000 |
Entry Rate | 1.93% | 1.91% |
Weighted Average Effective Rate | 1.97% | 2.08% |
Open Equity | $ 48,000 | $ 217,000 |
Junior Subordinated Debt [Member] | Year 2017 Expiration [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 26,000,000 | $ 26,000,000 |
Entry Rate | 2.08% | 1.93% |
Weighted Average Effective Rate | 1.42% | 1.28% |
Open Equity | $ (86,000) | $ (169,000) |
Junior Subordinated Debt [Member] | Year 2018 Expiration [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 26,000,000 | $ 26,000,000 |
Entry Rate | 1.84% | 1.84% |
Weighted Average Effective Rate | 1.68% | 1.82% |
Open Equity | $ (43,000) | $ (6,000) |
Junior Subordinated Debt [Member] | Year 2019 Expiration [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 26,000,000 | $ 26,000,000 |
Entry Rate | 1.63% | 1.63% |
Weighted Average Effective Rate | 1.95% | 2.21% |
Open Equity | $ 82,000 | $ 150,000 |
Junior Subordinated Debt [Member] | Year 2020 Expiration [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 26,000,000 | $ 26,000,000 |
Entry Rate | 1.95% | 1.95% |
Weighted Average Effective Rate | 2.17% | 2.45% |
Open Equity | $ 57,000 | $ 132,000 |
Junior Subordinated Debt [Member] | Year 2021 Expiration [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 26,000,000 | $ 26,000,000 |
Entry Rate | 2.22% | 2.22% |
Weighted Average Effective Rate | 2.37% | 2.64% |
Open Equity | $ 38,000 | $ 110,000 |
Repurchase Agreements [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 60,000,000 | $ 60,000,000 |
Entry Rate | 2.30% | 2.19% |
Weighted Average Effective Rate | 1.97% | 2.08% |
Open Equity | $ (903,000) | $ (325,000) |
Repurchase Agreements [Member] | Year 2017 Expiration [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 60,000,000 | $ 60,000,000 |
Entry Rate | 1.49% | 1.32% |
Weighted Average Effective Rate | 1.42% | 1.28% |
Open Equity | $ (23,000) | $ (26,000) |
Repurchase Agreements [Member] | Year 2018 Expiration [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 60,000,000 | $ 60,000,000 |
Entry Rate | 1.90% | 1.90% |
Weighted Average Effective Rate | 1.68% | 1.82% |
Open Equity | $ (134,000) | $ (49,000) |
Repurchase Agreements [Member] | Year 2019 Expiration [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 60,000,000 | $ 60,000,000 |
Entry Rate | 2.32% | 2.32% |
Weighted Average Effective Rate | 1.95% | 2.21% |
Open Equity | $ (226,000) | $ (69,000) |
Repurchase Agreements [Member] | Year 2020 Expiration [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 60,000,000 | $ 60,000,000 |
Entry Rate | 2.60% | 2.60% |
Weighted Average Effective Rate | 2.17% | 2.45% |
Open Equity | $ (261,000) | $ (88,000) |
Repurchase Agreements [Member] | Year 2021 Expiration [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 60,000,000 | $ 60,000,000 |
Entry Rate | 2.80% | 2.80% |
Weighted Average Effective Rate | 2.37% | 2.64% |
Open Equity | $ (259,000) | $ (93,000) |
Derivative Financial Instrume44
Derivative Financial Instruments - Income Statement Effect (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Losses) gains on derivative instruments | $ (831,513) | $ (757,613) | $ (810,013) | $ (2,057,475) |
Eurodollar Future [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Losses) gains on derivative instruments | $ (831,000) | $ (757,000) | $ (810,000) | $ (2,057,000) |
Pledged Assets - Assets Pledged
Pledged Assets - Assets Pledged to Counterparties (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Pledged Assets [Line Items] | ||
Mortgage Backed Securities At Fair Value Pledged As Collateral | $ 141,900,146 | $ 129,582,386 |
Interest Receivable | 541,201 | 512,760 |
Restricted Cash And Cash Equivalents At Carrying Value | 588,620 | 1,221,978 |
Repurchase Agreements [Member] | ||
Pledged Assets [Line Items] | ||
Interest Receivable | 521,000 | 489,000 |
Restricted Cash And Cash Equivalents At Carrying Value | 15,000 | 456,000 |
Total Assets Pledged to Counterparties | 142,436,000 | 130,527,000 |
DerivativeMember | ||
Pledged Assets [Line Items] | ||
Interest Receivable | 0 | 0 |
Restricted Cash And Cash Equivalents At Carrying Value | 574,000 | 766,000 |
Total Assets Pledged to Counterparties | 574,000 | 766,000 |
Total Pledged Financial Instruments [Member] | ||
Pledged Assets [Line Items] | ||
Interest Receivable | 521,000 | 489,000 |
Restricted Cash And Cash Equivalents At Carrying Value | 589,000 | 1,222,000 |
Total Assets Pledged to Counterparties | 143,010,000 | 131,293,000 |
Mortgage Backed Securities Pass Through Certificates [Member] | Repurchase Agreements [Member] | ||
Pledged Assets [Line Items] | ||
Mortgage Backed Securities At Fair Value Pledged As Collateral | 139,010,000 | 124,298,000 |
Mortgage Backed Securities Pass Through Certificates [Member] | DerivativeMember | ||
Pledged Assets [Line Items] | ||
Mortgage Backed Securities At Fair Value Pledged As Collateral | 0 | 0 |
Mortgage Backed Securities Pass Through Certificates [Member] | Total Pledged Financial Instruments [Member] | ||
Pledged Assets [Line Items] | ||
Mortgage Backed Securities At Fair Value Pledged As Collateral | 139,010,000 | 124,298,000 |
Mortgage Backed Securities Structured Certificates [Member] | Repurchase Agreements [Member] | ||
Pledged Assets [Line Items] | ||
Mortgage Backed Securities At Fair Value Pledged As Collateral | 2,890,000 | 5,284,000 |
Mortgage Backed Securities Structured Certificates [Member] | DerivativeMember | ||
Pledged Assets [Line Items] | ||
Mortgage Backed Securities At Fair Value Pledged As Collateral | 0 | 0 |
Mortgage Backed Securities Structured Certificates [Member] | Total Pledged Financial Instruments [Member] | ||
Pledged Assets [Line Items] | ||
Mortgage Backed Securities At Fair Value Pledged As Collateral | $ 2,890,000 | $ 5,284,000 |
Offsetting Assets and Liabilt46
Offsetting Assets and Liabilties - Offsetting of Liabilties (Details) - Repurchase Agreements [Member] - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Offsetting Liabilities [Line Items] | ||
Gross Amount Of Recognized Liabilties | $ 134,633,000 | $ 121,828,000 |
Gross Amount Of Liabilties Offset In The Balance Sheet | 0 | 0 |
Net Amount Of Liabilities Presented In The Balance Sheet | 134,633,000 | 121,828,000 |
Gross Amount Of Financial Instruments Posted Not Offset in Balance Sheet | (134,618,000) | (121,372,000) |
Gross Amounts Of Cash Posted Not Offset In Balance Sheet | (15,000) | (456,000) |
Net Amount Of Liabilities | $ 0 | $ 0 |
Trust Preferred Securities - Na
Trust Preferred Securities - Narrative (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Outstanding Principal Balance | $ 26,804,440 | $ 26,804,440 |
Junior Subordinated Debt [Member] | Bimini Capital Trust II Junior Subordinated Note [Member] | Three Month Libor [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding Principal Balance | $ 26,800,000 | $ 26,800,000 |
Basis Spread on Variable Rate | 3.50% | |
Interest Rate at Period End | 4.75% |
Capital Stock - Issuances of Co
Capital Stock - Issuances of Common Stock (Details) - Class A Common Stock [Member] - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Shares Issued Related To [Line Items] | ||||
Vesting Incentive Plan Shares | 0 | 0 | 0 | 258,333 |
Total Shares Issued During Period | 0 | 0 | 0 | 258,333 |
Stock Incentive Plans - Descrip
Stock Incentive Plans - Descriptions of Plans (Details) | 6 Months Ended |
Jun. 30, 2017shares | |
Employee Benefits And Share Based Compensation [Abstract] | |
Maximum Number of Shares to Be Issued the Plan | 4,000,000 |
Percentage of Outstanding Stock Limitation | 10.00% |
Stock Incentive Plans - Incenti
Stock Incentive Plans - Incentive Share Awards (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Performance Units Member [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Incentive Plan Compensation Expense | $ 14,000 | $ 16,000 |
Unrecognized Compensation Cost | $ 25,000 | $ 59,000 |
Remaining Weighted Average Vesting Period | 1 year 12 days | 2 years 15 days |
Intrinsic Value | $ 196,000 | $ 107,000 |
Fully Vested Share Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Incentive Plan Compensation Expense | $ 0 | |
Bonus Date | Jan. 15, 2016 | |
Cash Bonus | $ 500,000 | |
Stock Issued During Period Value Share Based Compensation | $ 200,000 |
Stock Incentive Plans - Incen51
Stock Incentive Plans - Incentive Share Activity (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Performance Units Member [Member] | ||
Incentive Share Activity, Shares | ||
Nonvested - Beginning Balance | 70,000 | 77,500 |
Granted | 0 | 0 |
Vested | 0 | 0 |
Nonvested - Ending Balance | 70,000 | 77,500 |
Incentive Share Activity Weighted Average Grant Date Fair Value | ||
Nonvested - Beginning Balance | $ 1.23 | $ 1.22 |
Granted | 0 | 0 |
Vested | 0 | 0 |
Nonvested - Ending Balance | $ 1.23 | $ 1.22 |
Fully Vested Share Awards [Member] | ||
Incentive Share Activity, Shares | ||
Vested | 258,333 | |
Incentive Share Activity Weighted Average Grant Date Fair Value | ||
Granted | $ 0.75 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Taxes [Line Items] | ||||
Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments | $ 1,075,190 | $ 1,013,299 | $ 729,259 | $ 1,728,044 |
Income Tax Expense Benefit | $ 425,816 | $ 411,601 | $ 294,100 | $ 680,355 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Class A Common Stock [Member] | |||||
Net Income (Loss) Available to Common Stockholders, Diluted [Abstract] | |||||
Net Income (Loss) Available to Common Stockholders, Basic | $ 647,000 | $ 600,000 | $ 434,000 | $ 1,045,000 | |
Net Income (Loss) Available to Common Stockholders, Diluted | $ 647,000 | $ 600,000 | $ 434,000 | $ 1,045,000 | |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |||||
Common Shares Outstanding | 12,631,627 | 12,632,000 | 12,631,627 | 12,632,000 | 12,631,627 |
Effect of Weighting | 0 | (1,000) | 0 | (22,000) | |
Weighted Average Shares - Basic | 12,701,627 | 12,709,127 | 12,701,627 | 12,687,836 | |
Weighted Average Shares - Diluted | 12,701,627 | 12,709,127 | 12,701,627 | 12,687,836 | |
Income (Loss) Per Share - Basic | $ 0.05 | $ 0.05 | $ 0.03 | $ 0.08 | |
Income (Loss) Pe Share - Diluted | $ 0.05 | $ 0.05 | $ 0.03 | $ 0.08 | |
Class B Common Stock [Member] | |||||
Net Income (Loss) Available to Common Stockholders, Diluted [Abstract] | |||||
Net Income (Loss) Available to Common Stockholders, Basic | $ 2,000 | $ 2,000 | $ 1,000 | $ 3,000 | |
Net Income (Loss) Available to Common Stockholders, Diluted | $ 2,000 | $ 2,000 | $ 1,000 | $ 3,000 | |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |||||
Common Shares Outstanding | 31,938 | 32,000 | 31,938 | 32,000 | 31,938 |
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 | $ 0.05 | $ 0.05 | $ 0.03 | $ 0.08 | |
Income (Loss) Pe Share - Diluted | $ 0.05 | $ 0.05 | $ 0.03 | $ 0.08 |
Assets and Liabilities Recorded
Assets and Liabilities Recorded at Fair Value on Recurring Basis (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities | $ 142,482,975 | $ 130,301,989 |
Investment In Orchid | 14,987,555 | 15,108,240 |
Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities | 142,482,975 | 130,301,989 |
Eurodollar Futures Contracts | 574,000 | 766,000 |
Retained Interests | 644,000 | 1,114,000 |
Investment In Orchid | 14,988,000 | 15,108,000 |
Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities | 0 | 0 |
Eurodollar Futures Contracts | 574,000 | 766,000 |
Retained Interests | 0 | 0 |
Investment In Orchid | 14,988,000 | 15,108,000 |
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities | 142,482,975 | 130,301,989 |
Eurodollar Futures Contracts | 0 | 0 |
Retained Interests | 0 | 0 |
Investment In Orchid | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value, Fair Value Disclosure [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 | 644,000 | 1,114,000 |
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, 2017 | Jun. 30, 2016 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $ 1,114,000 | $ 1,124,000 |
Gain (loss) Included in Earnings | 304,000 | 1,080,000 |
Collections | 774,000 | 845,000 |
Ending Balance | $ 644,000 | $ 1,359,000 |
Quantitative Information About
Quantitative Information About Level 3 Fair Value Measurements - Prepayment Assumptions (Details) - Retained Interest [Member] | 6 Months Ended |
Jun. 30, 2017 | |
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 Abou57
Quantitative Information About Level 3 Fair Value Measurements - Default Assumptions (Details) - Retained Interest [Member] | 6 Months Ended |
Jun. 30, 2017 | |
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] | Weighted Average [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Loss Severity Range | 33.50% |
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] | Weighted Average [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Loss Severity Range | 33.50% |
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] | 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] | 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] | 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] | |
Probability of Default | 2.80% |
Range Of Loss Timining | Month 29 and Beyond |
Current Loans [Member] | Weighted Average [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Loss Severity Range | 45.00% |
Quantitative Information Abou58
Quantitative Information About Level 3 Fair Value Measurements - Cash Flow Recognition (Details) | 6 Months Ended |
Jun. 30, 2017 | |
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 | 15.6 |
Fair Value Inputs Discount Rate | 27.50% |
Maximum [Member] | Discounted Cashflows [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Remaining Life Range | 15.2 |
Fair Value Inputs Discount Rate | 27.50% |
Minimum [Member] | Nominal Cashflows [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Remaining Life Range | 12.2 |
Fair Value Inputs Discount Rate | 27.50% |
Minimum [Member] | Discounted Cashflows [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Remaining Life Range | 1.3 |
Fair Value Inputs Discount Rate | 27.50% |
Weighted Average [Member] | Nominal Cashflows [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Remaining Life Range | 12.9 |
Fair Value Inputs Discount Rate | 27.50% |
Weighted Average [Member] | Discounted Cashflows [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Remaining Life Range | 2.5 |
Fair Value Inputs Discount Rate | 27.50% |
Related Party Transactions - Ma
Related Party Transactions - Management Agreement (Details) - Orchid Island Capital [Member] | 6 Months Ended |
Jun. 30, 2017 | |
First $250 million of Equity [Member] | |
Related Party Transaction [Line Items] | |
Management Fee Percent of Equity | 1.50% |
Greater than $250 million but less than or equal to $500 million Equity [Member] | |
Related Party Transaction [Line Items] | |
Management Fee Percent of Equity | 1.25% |
Greater than $500 million of Equity [Member] | |
Related Party Transaction [Line Items] | |
Management Fee Percent of Equity | 1.00% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||||
Advisory services | $ 1,788,043 | $ 1,273,517 | $ 3,458,044 | $ 2,542,536 | |
Orchid Dividends | 638,415 | 585,915 | 1,241,830 | 1,171,830 | |
Orchid Island Capital [Member] | |||||
Related Party Transaction [Line Items] | |||||
Advisory services | 1,788,000 | 1,274,000 | 3,458,000 | 2,542,000 | |
Due From Affiliate | $ 700,000 | $ 700,000 | $ 600,000 | ||
Orchid Shares Owned | 1,520,036 | 1,520,036 | 1,395,036 | ||
Orchid Ownership Percentage | 3.40% | 3.40% | 4.20% | ||
Compensation Paid By Orchid | $ 200,000 | 200,000 | $ 200,000 | 400,000 | |
Orchid Island Capital [Member] | Management Fees [Member] | |||||
Related Party Transaction [Line Items] | |||||
Advisory services | 1,400,000 | 945,000 | 2,702,000 | 1,916,000 | |
Orchid Island Capital [Member] | Overhead Allocation [Member] | |||||
Related Party Transaction [Line Items] | |||||
Advisory services | $ 388,000 | $ 329,000 | $ 756,000 | $ 626,000 |
Uncategorized Items - bmnm-2017
Label | Element | Value |
Amortization Of Equity Awards | bmnm_AmortizationOfEquityAwards | $ 14,343 |