DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 09, 2018 | Jun. 30, 2017 | |
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
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 | ||
Entity Public Float | $ 24,300,000 | ||
Trading Symbol | BMNM | ||
Class A Common Stock [Member] | |||
Entity Common Stock Shares Outstanding | 12,743,959 | ||
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 ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Mortgage Backed Securities At Fair Value [Abstract] | ||
Pledged to counterparties | $ 209,269,791 | $ 129,582,386 |
Unpledged | 422,341 | 719,603 |
Total mortgage-backed securities | 209,692,132 | 130,301,989 |
Cash and cash equivalents | 6,103,250 | 4,429,459 |
Restricted cash | 2,649,610 | 1,221,978 |
Orchid Island Capital, Inc. common stock, at fair value | 14,105,934 | 15,108,240 |
Retained interests in securitizations | 653,380 | 1,113,736 |
Accrued interest receivable | 746,121 | 512,760 |
Property and equipment, net | 3,359,312 | 3,407,040 |
Net deferred tax assets | 44,524,584 | 63,833,063 |
Other assets | 2,754,474 | 2,942,139 |
Total Assets | 284,588,797 | 222,870,404 |
Liabilities | ||
Outstanding repurchase obligations | 200,182,751 | 121,827,586 |
Junior subordinated notes due to Bimini Capital Trust II | 26,804,440 | 26,804,440 |
Accrued interest payable | 346,444 | 114,199 |
Other Liabilities | 1,562,914 | 1,977,281 |
Total Liabilities | 228,896,549 | 150,723,506 |
Stockholders' Equity | ||
Preferred stock | 0 | 0 |
Common stock | 12,725 | 12,696 |
Additional paid in capital | 334,878,779 | 334,850,838 |
Accumulated deficit | (279,199,256) | (262,716,636) |
Stockholders Equity | 55,692,248 | 72,146,898 |
Total Liabilities and Stockholders' Equity | 284,588,797 | 222,870,404 |
Class A Common Stock [Member] | ||
Stockholders' Equity | ||
Common stock | 12,661 | 12,632 |
Class B Common Stock [Member] | ||
Stockholders' Equity | ||
Common stock | 32 | 32 |
Class C Common Stock [Member] | ||
Stockholders' Equity | ||
Common stock | 32 | 32 |
Residential Mortgage Backed Securities [Member] | ||
Mortgage Backed Securities At Fair Value [Abstract] | ||
Pledged to counterparties | 209,269,791 | 129,582,386 |
Unpledged | 422,341 | 719,603 |
Total mortgage-backed securities | $ 209,692,132 | $ 130,301,989 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) | Dec. 31, 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 Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock Value Outstanding | $ 12,725 | $ 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 | 12,660,627 | 12,631,627 |
Common Stock Shares Outstanding | 12,660,627 | 12,631,627 |
Common Stock Value Outstanding | $ 12,661 | $ 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 Shares Authorized | 9,900,000 | 9,900,000 |
Preferred Shares Issued | 0 | 0 |
Preferred Shares Outstanding | 0 | 0 |
Series A Preferred Stock [Member] | ||
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 ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | ||
Advisory services | $ 7,431,359 | $ 5,488,691 |
Interest income | 6,054,381 | 4,235,081 |
Orchid Island Capital, Inc. dividends | 2,518,660 | 2,343,660 |
Total revenues | 16,004,400 | 12,067,432 |
Interest expense on repurchase agreements | 1,795,753 | 747,374 |
Interest expense on junior subordinated notes | 1,237,614 | 1,108,610 |
Net revenues | 12,971,033 | 10,211,448 |
Other income: | ||
Unrealized (losses) gains on mortgage-backed securities | (2,066,256) | (3,785,939) |
Realized gains on mortgage-backed securities | (689) | 179,667 |
Unrealized losses on Orchid Island Capital, Inc. common stock | (2,206,541) | 1,255,533 |
(Losses) gains on derivative instruments | (46,031) | (15,638) |
Gains on retained interests in securitizations | 645,221 | 2,425,190 |
Other expense, net | 1,578 | 1,125 |
Total other income | (3,672,718) | 59,938 |
Expenses | ||
Compensation and related benefits | 3,851,925 | 3,324,955 |
Directors fees and liability insurance | 658,752 | 621,873 |
Audit, legal and other professional fees | 455,167 | 599,243 |
Administrative and other expenses | 1,436,941 | 1,197,593 |
Total expenses | 6,402,785 | 5,743,664 |
Net (loss) income before income tax provision (benefit) | 2,895,530 | 4,527,722 |
Income tax provision (benefit) | 19,378,150 | 1,141,718 |
Net (loss) income | $ (16,482,620) | $ 3,386,004 |
Class A Common Stock [Member] | ||
Basic and Diluted Net (Loss) Income Per Share of: | ||
Basic | $ (1.3) | $ 0.27 |
Diluted | $ (1.3) | $ 0.27 |
Weighted Average Shares Outstanding | ||
Weighted Average Shares - Basic and Diluted | 12,633,216 | 12,698,122 |
Class B Common Stock [Member] | ||
Basic and Diluted Net (Loss) Income Per Share of: | ||
Basic | $ (1.3) | $ 0.27 |
Diluted | $ (1.3) | $ 0.27 |
Weighted Average Shares Outstanding | ||
Weighted Average Shares - Basic and Diluted | 31,938 | 31,938 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) | Total | Common Stock [Member] | Additional Paid In Capital [Member] | Retained Earnings [Member] |
Beginning Balances at Dec. 31, 2015 | $ 68,540,060 | $ 12,437 | $ 334,630,263 | $ (266,102,640) |
Increase (Decrease) in Stockholders' Equity | ||||
Net income | 3,386,004 | 0 | 0 | 3,386,004 |
Issuance of Class A common shares for equity plan exercises | 193,750 | 259 | 193,491 | 0 |
Amortization of stock based compensation | 27,084 | 0 | 27,084 | 0 |
Ending Balances at Dec. 31, 2016 | 72,146,898 | 12,696 | 334,850,838 | (262,716,636) |
Increase (Decrease) in Stockholders' Equity | ||||
Net income | (16,482,620) | 0 | 0 | (16,482,620) |
Issuance of Class A common shares for equity plan exercises | 0 | 29 | (29) | 0 |
Amortization of stock based compensation | 27,970 | 0 | 27,970 | 0 |
Ending Balances at Dec. 31, 2017 | $ 55,692,248 | $ 12,725 | $ 334,878,779 | $ (279,199,256) |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net (loss) income | $ (16,482,620) | $ 3,386,004 |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | ||
Stock based compensation | 27,970 | 220,834 |
Depreciation | 77,107 | 85,572 |
Deferred income tax provision (benefit) | 19,308,479 | 999,179 |
Losses (gains) on mortgage-backed securities | 2,066,945 | 3,606,272 |
Gains on retained interests in securitizations | (645,221) | (2,425,190) |
Unrealized losses on Orchid Island Capital, Inc. common stock | (2,206,541) | 1,255,533 |
Changes in operating assets and liabilities | ||
Accrued interest receivable | (233,361) | (161,711) |
Other assets | 187,665 | (240,484) |
Accrued interest payable | 232,245 | 30,242 |
Other liabilities | (414,367) | (556,161) |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 6,331,383 | 3,689,024 |
From mortgage-backed securities investments | ||
Purchases | (95,585,190) | (136,092,749) |
Sales | 1,654,834 | 73,061,443 |
Principal repayments | 12,473,268 | 13,111,444 |
Payments received on retained interests in securitizations | 1,105,577 | 2,435,732 |
Purchases of property and equipment | (29,379) | 0 |
Payments To Acquire Equity Method Investments | 1,204,235 | 1,859,277 |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (81,585,125) | (49,343,407) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from repurchase agreements | 1,028,157,893 | 1,041,580,945 |
Principal payments on repurchase agreements | (949,802,728) | (996,987,608) |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | 78,355,165 | 44,593,337 |
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 3,101,423 | (1,061,046) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 5,651,437 | 6,712,483 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | 8,752,860 | 5,651,437 |
Cash paid during the period for: | ||
Interest | 2,801,122 | 1,825,742 |
Income Taxes | $ 295,943 | $ 540,627 |
ORGANIZATION AND SIGNIFICANT AC
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Organization and Significant Accounting Policies | BIMINI CAPITAL MANAGEMENT, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 . ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Business Description Bimini Capital Management, Inc., a Maryland corporation (“Bimini Capital” or the “Company”) formed in September 2003, is a holding company. The Company’s principal operating subsidiaries are Bimini Advisors Holdings, LLC (formerly known as Bimini Advisors, Inc.) and Royal Palm Capital, LLC (formerly known as MortCo TRS, LLC). Bimini Advisors H oldings, LLC and its wholly-owned subsidiary, Bimini Advisors, LLC ( a registered investment advisor ), are collectively referred to as "Bimini Advisors." Bimini Advisors manages a residential mortgage-backed securities (“ MBS ”) portfolio for Orchid Island C apital, Inc. ("Orchid") and receives fees for providing these services. Royal Palm Capital, LLC maintains an investment portfolio, consisting primarily of MBS investments, for its own benefit. Royal Palm Capital, LLC and its wholly-owned subsidiaries are collectively referred to as "Royal Palm." Consolidation The accompanying consolidated financial statements include the accounts of Bimini Capital, Bimini Advisors and 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 com mon share investment in a trust used in connection with the issuance of Bimini Capital's junior subordinated notes. See Note 11 for a description of the accounting used for this VIE. Basis of Presentation The accompanying consolidated financial state ments are prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States (“GAAP”). In the opinion of management, all adjustments considered necessary for a fair presentation of the Company's con solidated financial position, results of operations and cash flows have been included and are of a normal and recurring nature. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and ass umptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results co uld differ from those estimates. Significant estimates affecting the accompanying consolidated financial statements include determining the fair values of MBS, investment in Orchid common shares, derivatives and retained interests , and determining the amo unts of asset valuation allowances and the level of deferred tax asset allowances recorded for each accounting period . As described in more detail in Note 15, estimates used for the deferred tax assets and associated asset allowances are numerous and the p rojection periods extend over the remaining lives of the net operating losses, to 2029 in the case of Royal Palm and 2036 in the case of Bimini. Such estimates can change materially from year to year as market conditions change or Orchid Island Capital gr ows through the issuance of new equity. 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 . Comprehensive income is the same as net income (loss) for all periods presented. Segment Reporting The Company’s operations are classified into two principal reportable segments: the asset management segment and the investment portfolio segment. These segments are evaluated by management in deciding how to allocate resources and in assessing performance. The accounting policies of the operating segments are the same as the Compan y’s accounting policies described in this note with the exception that inter-segment revenues and expenses are included in the presentation of segment results. For further information see Note 18 . 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. The following table presents the Company’s cash, cash equivalents and restricted cash as of December 31, 2017 and 2016 . (in thousands) 2017 2016 Cash and cash equivalents $ 6,103,250 $ 4,429,459 Restricted cash 2,649,610 1,221,978 Total cash, cash equivalents and restricted cash $ 8,752,860 $ 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 December 31, 2017 , the Company’s cash deposits exceeded federally insured limits by approximately $3.8 million. Restricted cash balances are uninsured, but are held in separate cus tomer accounts that are segregated from the general funds of the counterparty. The Company limits uninsured balances to only large, well-known banks and derivative counterparties and believes that it is not exposed to significant credit risk on cash and c ash equivalents or restricted cash balances. 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 Adv isors 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. Mortgage-Backed Securities The Company invests primarily in mortgage pass-through (“PT”) certific ates, collateralized mortgage obligations, and interest-only (“IO”) securities and inverse interest-only (“IIO”) securities representing interest in or obligations backed by pools of mortgage-backed loans. T he 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 ope rations for a particular reporting period and is consistent with the underlying economics and how the portfolio is managed. The Company records MBS transactions on the trade date. Security purchases that have not settled as of the balance sheet date are included in the MBS balance with an offsetting liability recorded, whereas securities sold that have not settled as of the balance sheet date are removed from the MBS balance with an offsetting receivable recorded. The fair value of the Company’s investme nt 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 particip ants at the measurement date. The fair value measurement assumes that the transaction to sell the asset or transfer the liability either occurs in the principal market for the asset or liability, or in the absence of a principal market, occurs in the most advantageous market for the asset or liability. Estimated fair values for MBS are based on independent pricing sources and/or third party broker quotes, when available. Income on PT MBS is based on the stated interest rate of the security. Premiums or d iscounts present at the date of purchase are not amortized. Premium lost and discount accretion resulting from monthly principal repayments are reflected in unrealized gains (losses) on MBS in the c onsolidated s tatement s of o peration s . For IO securities, the income is accrued based on the carrying value and the effective yield. The difference between income accrued and the interest received on the security is characterized as a return of investment and serves to reduce the asset’s carrying value. At each reporting date, the effective yield is adjusted prospectively from the reporting period based on the new estimate of prepayments and the contractual terms of the security. For IIO securities, effective yield and income recognition calculations also take i nto account the index value applicable to the security. Changes in fair value of MBS during each reporting period are recorded in earnings and reported as unrealized gains or losses on mortgage-backed securities in the accompanying consolidated statements of operations. 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 pri ncipal 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 the consolidated statements of operations for the year ended December 31, 2017 . We estimate the fair value of our investment in Orchid on a market approach using “Level 1” inputs based on the quoted market price of Orchid’s common stock on a national stock exchange. Electing the fair value option requires the Company to record changes in fair value in the consolidated statements of operations, which, in management’s view, more appropriately reflects the results of our operations for a particular reporting period and is consistent with how the investment is managed. Retained Interests in Securitizations 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 the consolidated statements of operations . 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 e xposures, 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 derivatives in the future. The Company ha s elected not to treat any of its derivative financial instruments as hedges in order to align the accounting treatment of its derivative instruments with the treatment of its portfolio assets under the fair value option election. FASB ASC Topic 815, Deriv atives and Hedging , requires that all derivative instruments be carried at fair value. Changes in fair value are recorded in the consolidated statements of operations 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 market value of the derivatives. In the event of default by a counterparty, the Compa ny 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 Topi c 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, Eurodoll ar 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 presen ted in Note 17 of the consolidated financial statements. The estimated fair value of cash and cash equivalents, restricted cash, accrued interest receivable, other assets, repurchase agreements , accrued interest payable and other liabilities generally a pproximates their carrying value as of December 31, 2017 and December 31, 2016 , due to the short-term nature of these financial instruments. It is impractical to estimate the fair value of the Company’s junior subordinated notes. Currently, there is a limi ted 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 instrument s is presented in Note 11 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 th e assets. Repurchase Agreements The Company finances the acquisition of the majority of its PT MBS through the use of repurchase agreements under master repurchase agreements. Pursuant to ASC Topic 860, Transfers and Servicing , the Company accounts for r epurchase transactions as collateralized financing transactions, which are carried at their contractual amounts, including accrued interest, as specified in the respective agreements. Share-Based Compensation The Company follows the provisions of ASC Top ic 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 forfeiture s may occur, would result in a revised forfeiture rate which would be accounted for prospectively as a change in an estimate. For transactions with non-employees in which services are performed in exchange for the Company’s common stock or other equity ins truments, 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 pr ovisions 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 p er share (“EPS”) on the face of the consolidated statement of operations. Basic EPS is calculated as income available to common stockholders divided by the weighted average number of common shares outstanding during the period. Dilut ed EPS is calculated us ing 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. Outstanding shares of Class B Common Stock, participating and convertible into Class A Common Stock, are entitled to receive dividends in an amount equal to the dividends declared on each share of Class A Common Stock if, as and when authorized and declared by the Board of Directors. Accordingly, sh ares of the Class B Common Stock are included in the computation of basic EPS using the two-class method and, consequently, are presented separately from Class A Common Stock. The shares of Class C Common Stock are not included in the basic EPS computatio n as these shares do not have participation rights. The outstanding shares of Class B and Class C Common Stock are not included in the computation of diluted EPS for the Class A Common Stock as the conditions for conversion into shares of Class A Common St ock 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 a n LLC wholly-owned by Bimini Capital. Beginning with the tax period starting on February 1, 2 016, 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, 201 4 remain open for examination. Although management believes its calculations for tax returns are correct and the positions taken thereon are reasonable, the final outcome of tax audits could be materially different from the tax returns filed by the Company, and those differences could result in significant costs or benefits to the Company. The Company measures, recognizes and presents its uncertain tax positions in accordance with ASC Topic 740, Income Taxes . Under that guidance, the Company assesses the l ikelihood, 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 informa tion 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 b ased 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 cla imed on a tax return is referred to as an unrecognized tax benefit and is recorded as a liability in the consolidated balance sheets . The C ompany records income tax-related interest and penalties, if applicable, within the income tax provision. On Decembe r 22, 2017, the U.S. Tax Cuts and Jobs Act (the “Tax Reform Act”) was signed into law by President Trump. The Tax Reform Act significantly revised the U.S. corporate income tax code by, among other things, lowering the U.S. corporate tax rate from 35% to 2 1% effective January 1, 2018. On the same date, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 which specifies, among other things, that reasonable estimates of the income tax effects of the Tax Reform Act should be used, i f determinable. The C ompany has accounted for the effects of the Tax Reform Act using reasonable estimates based on currently available information and its interpretations thereof. This accounting may change due to, among other things, changes in interpret ations the Co mpany has made and the issuance of new tax or accounting guidance. GAAP requires that the effects of a change in tax rate on the value of deferred tax assets and deferred tax liabilities be recognized upon enactment. See Note 15 for further details of the impact of the Tax Reform Act on the Company. Reclassifications Certain prior period amounts have been reclassified to conform to current period presentations. 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 components 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 adopted the ASU beginning with the first quarter of 2017. The prior peri od consolidated statement of cash flows has been retroactively 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 within those years, beginning after December 15, 2017. Early applicatio n is permitted. The Company does not believe the adoption of this ASU will have a material impact on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – 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 model (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 does not believe th e adoption of this ASU will have a material impact on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabi lities. 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 within those years, beginning after Dece mber 15, 2017 and, for most provisions, is effective using the cumulative-effect transition approach. Early application is permitted for certain provisions. The Company does not believe the adoption of this ASU will have a material impact on its consolid ated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which implements a common revenue standard and clarifies the principles used for recognizing revenue. The amendments in the ASU clarify that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in ASU No. 20 14-09 will be effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. A significant amount of the Company’s revenues are derived from net interest income on financial asset s and liabilities, which are excluded from the scope of the amended guidance. The Company does not believe the adoption of this ASU will have a material impact on its consolidated financial statements. |
ADVISORY SERVICES
ADVISORY SERVICES | 12 Months Ended |
Dec. 31, 2017 | |
Advisory Services [Abstract] | |
Advisory Services [Text Block] | NOTE 2 . ADVISORY SERVICES Bimini Advisors serves as the manager and advisor for Orchid pursuant to the terms of a management agreement. As Manager, Bimini Advisors is responsible for administering Orchid's business 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 oversi ght 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 ma nagement 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. Orchid is obligated to reimburse B imini 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 Febr uary 2019 and provides for automatic one-year extension options. Should Orchid terminate 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 mana gement agreement, before or on the last day of the automatic renewal term. The following table summarizes the advisory services revenue from Orchid for the years ended December 31, 2017 and 2016 . (in thousands) 2017 2016 Management fee $ 5,855 $ 4,188 Allocated overhead 1,576 1,301 Total $ 7,431 $ 5,489 At December 31, 2017 and 2016 , the net amount due from Orchid was approximately $0.8 million and $0.6 million, respectively. These amounts are included in “other assets” in the consolidated balance sheets. During the years ended December 31, 2017 and 2016 , Orchid accrued cash and equity compensation payable to officers and employees of Bimini of $0.6 million and $0.8, respectively. This compensation is not included in the consolidated statements of operations. |
MORTGAGE-BACKED SECURITIES
MORTGAGE-BACKED SECURITIES | 12 Months Ended |
Dec. 31, 2017 | |
Mortgage Backed Securities [Abstract] | |
Mortgage-Backed Securities | NOTE 3 . MORTGAGE-BACKED SECURITIES The following table presents the Company’s MBS portfolio as of December 31, 2017 and 2016 : (in thousands) 2017 2016 Pass-Through MBS: Fixed-rate Mortgages $ 207,179 $ 124,299 Total Pass-Through MBS 207,179 124,299 Structured MBS: Interest-Only Securities 1,476 2,654 Inverse Interest-Only Securities 1,037 3,349 Total Structured MBS 2,513 6,003 Total $ 209,692 $ 130,302 The following table summarizes the Company’s MBS portfolio as of December 31, 2017 and 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) 2017 2016 Greater than or equal to ten years $ 209,692 $ 130,302 Total $ 209,692 $ 130,302 |
RETAINED INTERESTS IN SECURITIZ
RETAINED INTERESTS IN SECURITIZATIONS | 12 Months Ended |
Dec. 31, 2017 | |
Retained Interests In Securitizations [Abstract] | |
Retained Interests In Securitizations | NOTE 4 . 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 December 31, 2017 and 2016 : (in thousands) Series Issue Date 2017 2016 HMAC 2004-2 May 10, 2004 $ - $ 143 HMAC 2004-3 June 30, 2004 177 364 HMAC 2004-4 August 16, 2004 386 463 HMAC 2004-5 September 28, 2004 90 144 Total $ 653 $ 1,114 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Property And Equipment [Text Block] | NOTE 5 . PROPERTY AND EQUIPMENT, NET The composition of property and equipment at December 31, 2017 and 2016 follows: (in thousands) 2017 2016 Land $ 2,247 $ 2,247 Buildings and improvements 1,827 1,827 Computer equipment and software 165 177 Office furniture and equipment 198 180 Total cost 4,437 4,431 Less accumulated depreciation and amortization 1,078 1,024 Property and equipment, net $ 3,359 $ 3,407 Depreciation of property and equipment totaled approximately $77,000 and $86,000 for the years ended December 31, 2017 and 2016 , respectively. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Other Assets Abstract | |
Other Assets Text Block | NOTE 6 . OTHER ASSETS The composition of other assets at December 31, 2017 and 2016 follows: (in thousands) 2017 2016 Prepaid expenses $ 468 $ 756 Servicing advances 243 245 Servicing sale receivable, including accrued interest 222 309 Investment in Bimini Capital Trust II 804 804 Due from affiliates 797 566 Other 220 262 Total other assets $ 2,754 $ 2,942 Receivables are carried at their estimated collectible amounts. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of the counterparty to make required payments, if any. Management considers the following factors when determining the collectability of specific accounts: past transaction activity, current economic conditions and changes in payment terms. Amounts that the Company determines are no longer collectible are written off. As of December 31, 2017 and 2016 , management determined that no allowance for doubtful accounts was necessary. Collections on amounts previously written off are included in income as received. |
REPURCHASE AGREEMENTS
REPURCHASE AGREEMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Repurchase Agreements [Abstract] | |
Repurchase Agreements | NOTE 7 . REPURCHASE AGREEMENTS As of December 31, 2017 , the Company had outstanding repurchase agreement obligations of approximately $200.2 million with a net weighted average borrowing rate of 1.52% . These agreements were collateralized by MBS with a fair value, including accrued interest, of approximately $210.0 million , and cash pledged to cou nterparty of approximately $2.2 million . As of December 31, 2016 , the Company had outstanding repurchase agreem ent obligations of approximately $121.8 million 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 , and ca sh pledged to cou nterparty of approximately $0.5 million . As of December 31, 2017 and December 31, 2016 , the Company’s repurchase agreements had remaining maturities as summarized below: ($ in thousands) OVERNIGHT BETWEEN 2 BETWEEN 31 GREATER (1 DAY OR AND AND THAN LESS) 30 DAYS 90 DAYS 90 DAYS TOTAL December 31, 2017 Fair value of securities pledged, including accrued interest receivable $ - $ 94,649 $ 115,350 $ - $ 209,999 Repurchase agreement liabilities associated with these securities $ - $ 90,686 $ 109,497 $ - $ 200,183 Net weighted average borrowing rate - 1.47% 1.56% - 1.52% 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 files 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 December 31, 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 $11.7 million and $8.4 million, respectively. T he Company did not have an amount at risk with any individual coun terparty greater than 10% of the Company’s equity at December 31, 2017 and 2016 . |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | NOTE 8 . 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 derivatives 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 such all gains or l osses (realized and unrealized) on these instruments are reflected in earnings for all periods presented. As of December 31, 2017 and 2016 , such instruments were comprised entirely of Eurodollar futures contracts . Eurodollar and T-Note futures are cash settled futures contracts on an interest rate, with gains or losses credited or charged to the Company’s account on a daily basis and reflected in earnings as they occur. A minimum balance, or “margin”, is required to be maintained in the account on a daily basis. The 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 balance sheets as part of restricted cash. Eurodollar and T-Note futures are cash settled futures contracts on an interest rate, with gains and losses credited or charged to the Company’s cash accounts on a daily basis. A minimum balance, or “margin”, is required to be maintained in the account on a daily basis. The tables below present information related to the Company’s Eurodollar futures positions at December 31, 2017 and December 31, 2016 . ($ in thousands) As of December 31, 2017 Repurchase Agreement Funding Hedges Average Weighted Weighted Contract Average Average Notional Entry LIBOR Open Expiration Year Amount Rate Rate Equity (1) 2018 $ 60,000 1.90% 1.97% $ 41 2019 60,000 2.32% 2.27% (31) 2020 60,000 2.60% 2.36% (145) 2021 60,000 2.80% 2.42% (230) Total / Weighted Average $ 60,000 2.41% 2.25% $ (365) ($ in thousands) As of December 31, 2017 Junior Subordinated Debt Funding Hedges Average Weighted Weighted Contract Average Average Notional Entry LIBOR Open Expiration Year Amount Rate Rate Equity (1) 2018 $ 26,000 1.84% 1.97% $ 33 2019 26,000 1.63% 2.27% 166 2020 26,000 1.95% 2.36% 107 2021 26,000 2.22% 2.42% 51 Total / Weighted Average $ 26,000 1.91% 2.25% $ 357 ($ in thousands) As of December 31, 2016 Repurchase Agreement Funding Hedges Average Weighted Weighted Contract Average Average Notional Entry LIBOR 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 LIBOR 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 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 years ended December 31, 2017 and 2016 . (in thousands) Consolidated 2017 2016 Eurodollar futures contracts (short positions) - Repurchase agreement funding hedges $ (32) $ (318) Eurodollar futures contracts (short positions)- Junior subordinated debt funding hedges (14) 302 Net losses on derivative instruments $ (46) $ (16) 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 it counterparties to major financial institutions with acceptable credit ratings, and by mon itoring 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 cont ract. 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 equ ivalents pledged as collateral for the Company’s derivative instruments are included in restricted cash on the consolidated balance sheets. |
PLEDGED ASSETS
PLEDGED ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments Pledged as Collateral [Abstract] | |
Pledged Assets [Text Block] | NOTE 9 . PLEDGED ASSETS Assets Pledged to Counterparties The tables below summarize our assets pledged as collateral under our repurchase agreements and derivative agreements as of December 31, 2017 and 2016 . ($ in thousands) As of December 31, 2017 Repurchase Derivative Assets Pledged to Counterparties Agreements Agreements Total PT MBS - at fair value $ 207,179 $ - $ 207,179 Structured MBS - at fair value 2,091 - 2,091 Accrued interest on pledged securities 730 - 730 Cash 2,208 442 2,650 Total $ 212,208 $ 442 $ 212,650 ($ 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 | 12 Months Ended |
Dec. 31, 2017 | |
Offsetting [Abstract] | |
Offsetting Assets And Liabilities [Text Block] | NOTE 10 . OFFSETTING ASSETS AND LIABILITIES The Company’s 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 arrangements as if the Company had presented them on a net basis as of December 31, 2017 and 2016 . (in thousands) Offsetting of Liabilities Net Amount Gross Amount Not Offset in the of Liabilities Consolidated Balance Sheet Gross Amount Presented Financial Gross Amount Offset in the in the Instruments Cash of Recognized Consolidated Consolidated Posted as Posted as Net Liabilities Balance Sheet Balance Sheet Collateral Collateral Amount December 31, 2017 Repurchase Agreements $ 200,183 $ - $ 200,183 $ (197,975) $ (2,208) $ - 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 9 for a discussion of collateral posted for, or received against, repurchase obliga tions and derivative instruments. |
TRUST PREFERRED SECURITIES
TRUST PREFERRED SECURITIES | 12 Months Ended |
Dec. 31, 2017 | |
Trust Preferred Securities [Abstract] | |
Trust Preferred Securities | NOTE 11 . 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 December 31, 2017 and 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 Subord inated Notes have a rate of interest that floats at a spread of 3.50% over the prevailing three-month LIBOR rate. As of December 31, 2017 , the interest rate was 5.09% . 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 to all present and future senior indebtedness. BCTII is a VIE because the holders of the equity investment at risk do not have adequate decision making ability over BCTII’s activities. Since Bimini Capital's investment in BCTII's common equity securities was financed directly by BCTII as a result of its loan of the proceeds to Bimini Capital, that investment is not considered to be an equity investment at risk. Since Bimini Capital's common share investment in BCTII is not a variable interest, Bimini Capital is not the primary be neficiary 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 p resent Bimini Capital's BCTII Junior Subordinated Notes issued to BCTII as a liability and Bimini Capital's investment in the common equity securities of BCTII as an asset (included in other assets). For financial statement purposes, Bimini Capital record s payments of interest on the Junior Subordinated Notes issued to BCTII as interest expense. |
CAPITAL STOCK
CAPITAL STOCK | 12 Months Ended |
Dec. 31, 2017 | |
Capital Stock [Abstract] | |
Capital Stock | NOTE 12 . CAPITAL STOCK Authorized Shares The total number of shares of capital stock which the Company has the authority to issue is 110,000,000 shares, classified as 100,000,000 shares of common stock , and 10,000,000 shares of preferred stock. The Board of Directors has the authority to classify any unissued shares by setting or changing in any one or more respects the preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends, qualifications or terms or condit ions of redemption of such shares. Common Stock Of the 100,000,000 authorized shares of common stock, 98,000,000 shares were designated as Class A common stock , 1,000,000 shares were designated as Class B common stock and 1,000,000 shares were designa ted as Class C common stock . Holders of shares of common stock have no sinking fund or redemption rights and have no pre-emptive rights to subscribe for any of the Company’s securities. All common shares have a $0.001 par value. Class A Common Stock Each outstanding share of Class A common stock entitles the holder to one vote on all matters submitted to a vote of stockholders, including the election of directors. Holders of shares of Class A common stock are not entitled to cumulate their votes in the el ection of directors. Subject to the preferential rights of any other class or series of stock and to the provisions of the Company's charter, as amended, regarding the restrictions on transfer of stock, holders of shares of Class A common stock are entit led to receive dividends on such stock if, as and when authorized and declared by the Board of Directors. Class B Common Stock Each outstanding share of Class B common stock entitles the holder to one vote on all matters submitted to a vote of common st ockholders, including the election of directors. Holders of shares of Class B common stock are not entitled to cumulate their votes in the election of directors. Holders of shares of Class A common stock and Class B common stock shall vote together as one class in all matters except that any matters which would adversely affect the rights and preferences of Class B common stock as a separate class shall require a separate approval by holders of a majority of the outstanding shares of Class B common stock . H olders of shares of Class B common stock are entitled to receive dividends on each share of Class B common stock in an amount equal to the dividends declared on each share of Class A common stock if, as and when authorized and declared by the Board of Dire ctors. Each share of Class B common stock shall automatically be converted into one share of Class A common stock on the first day of the fiscal quarter following the fiscal quarter during which the Company's Board of Directors were notified that, as of the end of such fiscal quarter, the stockholders' equity attributable to the Class A common stock , calculated on a pro forma basis as if conversion of the Class B common stock (or portion thereof to be converted) had occurred, and otherwise determined in accordance with GAAP, equals no less than $150.00 per share (adjusted equitably for any stock splits, stock combinations, stock dividends or the like); provided, that the number of shares of Class B common stock to be converted into Class A common stock in any quarter shall not exceed an amount that will cause the stockholders' equity attributable to the Class A common stock calculated as set forth above to be less than $150.00 per share; provided further, that such conversions shall continue to occur until all shares of Class B common stock have been converted into shares of Class A common stock ; and provided further, that the total number of shares of Class A common stock issuable upon conversion of the Class B common stock shall not exceed 3% of the total shares of common stock outstanding prior to completion of an initial public offering of Bimini Capital's Class A common stock . Class C Common Stock No dividends will be paid on the Class C common stock . Holders of shares of Class C common stock are not entitled to vote on any matter submitted to a vote of stockholders, including the election of directors, except that any matters that would adversely affect the rights and privileges of the Class C common stock as a separate class shall require the approv al of a majority of the Class C common stock . Each share of Class C common stock shall automatically be converted into one share of Class A common stock on the first day of the fiscal quarter following the fiscal quarter during which the Company's Board of Directors were notified that, as of the end of such fiscal quarter, the stockholders' equity attributable to the Class A common stock , calculated on a pro forma basis as if conversion of the Class C common stock had occurred and giving effect to the con version of all of the shares of Class B common stock as of such date, and otherwise determined in accordance with GAAP, equals no less than $150.00 per share (adjusted equitably for any stock splits, stock combinations, stock dividends or the like); provid ed, that the number of shares of Class C common stock to be converted into Class A common stock shall not exceed an amount that will cause the stockholders' equity attributable to the Class A common stock calculated as set forth above to be less than $150. 00 per share; and provided further, that such conversions shall continue to occur until all shares of Class C common stock have been converted into shares of Class A common stock and provided further, that the total number of shares of Class A common stock issuable upon conversion of the Class C common stock shall not exceed 3% of the total shares of common stock outstanding prior to completion of an initial public offering of Bimini Capital's Class A common stock . Preferred Stock General There are 10, 000,000 authorized shares of preferred stock, with a $0.001 par value per share. The Company's Board of Directors has the authority to classify any unissued shares of preferred stock and to reclassify any previously classified but unissued shares of any se ries of preferred stock previously authorized by the Board of Directors. Prior to issuance of shares of each class or series of preferred stock, the Board of Directors is required by the Company’s charter to fix the terms, preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications and terms or conditions of redemption for each such class or series. Classified and Designated Shares Pursuant to the Company’s supplementary amendm ent of its charter, effective November 3, 2005, and by resolutions adopted on September 29, 2005, the Company’s Board of Directors classified and designated 1,800,000 shares of the authorized but unissued preferred stock, $0.001 par value, as Class A Redee mable Preferred Stock and 2,000,000 shares of the authorized but unissued preferred stock as Class B Redeemable Preferred Stock. Preferred Stock The Class A Redeemable Preferred Stock and Class B Redeemable Preferred Stock rank equal to each other and s hall have the same preferences, rights, voting powers, restrictions, limitations as to dividends and other distributions, qualifications and terms; provided, however that the redemption provisions of the Class A Redeemable Preferred Stock and the Class B R edeemable Preferred Stock differ. Each outstanding share of Class A Redeemable Preferred Stock and Class B Redeemable Preferred Stock shall have one-fifth of a vote on all matters submitted to a vote of stockholders (or such lesser fraction of a vote as w ould be required to comply with the rules and regulations of the NYSE relating to the Company’s right to issue securities without obtaining a stockholder vote). Holders of shares of preferred stock shall vote together with holders of shares of common stock as one class in all matters that would be subject to a vote of stockholders. The previously outstanding shares of Class A Redeemable Preferred Stock were converted into Class A common stock on April 28, 2006. No shares of the Class B Redeemable Preferre d Stock have ever been issued. In 2015 the Board approved Articles Supplementary to the Company’s charter reclassifying and designating 1,800,000 shares of authorized but unissued Class A Redeemable Preferred Stock and 2,000,000 shares of authorized but unissued Class B Redeemable Preferred Stock into undesignated preferred stock, par value $0.001 per share, of the Company (“Preferred Stock”). After giving effect to the reclassification and designation of the shares of Class A Preferred Stock and Class B Preferred Stock, the Company has authority to issue 10,000,000 shares of undesignated Preferred Stock and no shares of Class A Preferred Stock or Class B Preferred Stock. The Articles Supplementary were filed with the State Department of Assessments and Taxation of Maryland (the “SDAT”) and became effective upon filing on December 21, 2015. In 2015 the Board approved Articles Supplementary to the Company’s charter creating a new series of Preferred Stock designated a s Series A Junior Preferred Stock, par value $0.001 per share, of the Company (the “Series A Preferred Stock”). The Articles Supplementary were filed with the SDAT and became effective upon filing on December 21, 2015. Rights Plan O n December 21, 2015 the Board adopted a rights agreement and declared a distribution of one preferred stock purchase right (“Right”) for each outstanding share of the Company’s Class A common stock, Class B common stock, and Class C common stock . The distr ibution was payable to stockholders of record as of the close of business on December 21, 2015. The Rights . Subject to the terms, provisions and conditions of the Rights Plan, if the Rights become exercisable, each Right would initially represent the righ t to purchase from the Company one ten-thousandth of a share of Series A Preferred Stock for a purchase price of $4.76, subject to adjustment in accordance with the terms of the Rights Plan (the “Purchase Price”). If issued, each fractional share of Series A Preferred Stock would give the stockholder approximately the same distribution, voting and liquidation rights as does one share of the Company’s Class A common stock. However, prior to exercise, a Right does not give its holder any rights as a stockhold er of the Company, including without limitation any distribution, voting or liquidation rights. Exercisability. The Rights will generally not be exercisable until the earlier of (i) 10 business days after a public announcement by the Company that a person or group has acquired 4.9% or more of the outstanding Class A common stock without the approval of the Board of Directors (an “Acquiring Person”) and (ii) 10 business days after the commencement of a tender or exchange offer by a person or group for 4.9% or more of the Class A common stock. The date that the Rights may first become exercisable is referred to as the “Distribution Date.” Until the Distribution Date, the Class A common stock, Class B common stock and Class C common stock certificates will re present the Rights and will contain a notation to that effect. Any transfer of shares of Class A common stock, Class B common stock and/or Class C common stock prior to the Distribution Date will constitute a transfer of the associated Rights. After the Di stribution Date, the Rights may be transferred other than in connection with the transfer of the underlying shares of Class A common stock, Class B common stock or Class C common stock. After the Distribution Date and following a determination by the Boar d that a person is an Acquiring Person, each holder of a Right, other than Rights beneficially owned by the Acquiring Person (which will thereupon become void), will thereafter have the right to receive upon exercise of a Right and payment of the Purchase Price, that number of shares of Class A common stock, Class B common stock or Class C common stock, as the case may be, having a market value of two times the Purchase Price (or, at our option, shares of Series A Preferred Stock or other consideration as p rovided in the Rights Plan). Exchange . After the Distribution Date and following a determination by the Board that a person or group is an Acquiring Person, the Board may exchange the Rights (other than Rights owned by such an Acquiring Person which will have become void), in whole or in part, at an exchange ratio of one share of Class A common stock, Class B common stock or Class C common stock, as the case may be, or a fractional share of Series A Preferred Stock (or of a share of a similar class or seri es of the Company’s preferred stock having similar Rights, preferences and privileges) of equivalent value, per Right (subject to adjustment). Expiration . The Rights and the Rights Plan will expire on the earliest of (i) December 21, 2025, (ii) the time a t which the Rights are redeemed pursuant to the Rights Plan, (iii) the time at which the Rights are exchanged pursuant to the Rights Plan, (iv) the repeal of Section 382 of the Code or any successor statute if the Board determines that the Rights Plan is n o longer necessary for the preservation of the applicable tax benefits, (v) the beginning of a taxable year of the Company to which the Board determines that no applicable tax benefits may be carried forward and (vi) the close of business on June 30, 2016 if approval of the Rights Plan by the Company’s stockholders has not been obtained. Redemption. At any time prior to the time an Acquiring Person becomes such, the Board may redeem the Rights in whole, but not in part, at a price of $0.001 per Right (the “Redemption Price”). The redemption of the Rights may be made effective at such time, on such basis and with such conditions as the Board in its sole discretion may establish. Immediately upon any redemption of the Rights, the right to exercise the Rights will terminate and the only right of the holders of Rights will be to receive the Redemption Price. Anti-Dilution Provisions. The Board may adjust the Purchase Price, the number of shares of Series A Preferred Stock or other securities issuable and the nu mber of outstanding Rights to prevent dilution that may occur as a result of certain events, including among others, a stock dividend, a forward or reverse stock split or a reclassification of the preferred shares or Class A common stock, Class B common st ock or Class C common stock . No adjustments to the Purchase Price of less than 1% will be made. Anti-Takeover Effects. While this was not the purpose of the Board when adopting the Rights Plan, the Rights will have certain anti-takeover effects. The Right s will cause substantial dilution to any person or group that attempts to acquire the Company without the approval of the Board. As a result, the overall effect of the Rights may be to render more difficult or discourage any attempt to acquire the Company even if such acquisition may be favorable to the interests of the Company’s stockholders. Because the Board can redeem the Rights, the Rights should not interfere with a merger or other business combination approved by the Board. Amendments. Before the Distribution Date, the Board may amend or supplement the Rights Plan without the consent of the holders of the Rights. After the Distribution Date, the Board may amend or supplement the Rights Plan only to cure an ambiguity, to alter time perio d provisions, to correct inconsistent provisions, or to make any additional changes to the Rights Plan, but only to the extent that those changes do not impair or adversely affect, in any material respect, any Rights holder and do not result in the Rights again becoming redeemable, and no such amendment may cause the Rights again to become redeemable or cause this Rights Plan again to become amendable other than in accordance with the applicable timing of the Rights Plan. Issuances of Common Stock The table below presents information related to the Company’s Class A Common Stock issued during the years ended December 31, 2017 and 2016 . Shares Issued Related To: 2017 2016 Incentive plan shares 29,000 258,333 Total shares of Class A Common Stock issued 29,000 258,333 On January 12, 2018, Robert Cauley and Hunter Haas each purchased 41,666 shares of the Company’s Class A Common Stock at a price of $2.40 per share directly from the Company. These newly issued shares are not reflected in the consolidated balance sheet as of December 31, 2017. There were no issuances of the Company's Class B Common Stock and Class C Common Stock during the years ended December 31, 2017 and 2016 . |
STOCK INCENTIVE PLANS
STOCK INCENTIVE PLANS | 12 Months Ended |
Dec. 31, 2017 | |
Employee Benefits And Share Based Compensation [Abstract] | |
Stock incentive Plans | NOTE 13 . STOCK INCENTIVE PLANS Bimini Capital On August 12, 2011, Bimini Capital’s shareholders approved the 2011 Long Term Compensation Plan (the “2011 Plan”) to assist the Company in recruiting and retaining employees, directors and other service providers by enabling them to participate in the success of Bimini Capital and to associate their interest with those of the Company and its stockholders. 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 o ther equity-based awards and the settlement of incentive awards and performance units is equal to 4,000,000 shares. Share Awards During 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 Stock with an approximate value of $0.2 million, or $0.75 per share. The shares were issued under the 2011 Plan. For purposes of th ese 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 it did not affect the results of operations for the year ended 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 s tock, 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 perfo rmance 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 P erformance 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 years ended December 31, 2017 and December 31, 2016 : 2017 2016 Weighted- Weighted- Average Average Grant-Date Grant-Date Shares Fair Value Shares Fair Value Nonvested, at January 1 70,000 $ 1.23 77,500 $ 1.22 Vested during the period (29,000) 1.78 - - Forfeited during the period - - (7,500) 1.15 Nonvested, at December 31 41,000 $ 0.84 70,000 $ 1.23 ($ in thousands) 2017 2016 Compensation expense recognized during the year $ 28 $ 27 Unrecognized compensation expense at year end $ 11 $ 39 Weighted-average remaining vesting term (in years) 0.9 1.5 Intrinsic value of unvested shares at year end $ 107 $ 183 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | NOTE 14 . 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 December 31, 2017 . |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 15 . INCOME TAXES On December 22, 2017, the Tax Reform Ac t was signed into law by President Trump. The Tax Reform Act significantly revised the U.S. corporate income tax code by, among other things, lowering the U.S. corporate tax rate from 35% to 21% effective January 1, 2018 . On the same date, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 which specifies, among other things, that reasonable estimates of the income tax effects o f the Tax Reform Act should be used, if determinable. G AAP requires that the impact of tax legislation be recognized in the period in which the law was enacted. The Company recorded an income tax provision of $19.4 million for the year ended December 31, 2017 , i ncluding a charge of $25.9 million due to a remeasurement of deferred tax assets and liabilities resulting from the tax rate reduction. The year 2017 tax provision represents the Company’s current best estimate based on management’s current interpretation of the Tax Reform Act and may change as the Company receives additional clarification and implementation guidance. The income tax provision included in the consolidated statements of operations consists of the following for the years ended December 31, 2017 an d 2016 : (in thousands) 2017 2016 Current $ 70 $ 143 Deferred 19,308 999 Income tax provision $ 19,378 $ 1,142 The income tax provision differs from the amount computed by applying the federal income tax statutory rate of 35 percent on income before income tax expense. A reconciliation of income tax at the statutory rate to income tax provision for the years ended December 31, 2017 and 2016 is presented in the table below. (in thousands) 2017 2016 Federal tax based on statutory rate applicable for each year $ 984 $ 1,539 State income tax 157 245 Reduction of deferred tax asset due to enacted decrease in future tax rates 25,852 - Reduction of deferred tax asset valuation allowance (7,628) (780) Other 13 138 Income tax provision $ 19,378 $ 1,142 Deferred tax assets consisted of the following as of December 31, 2017 and 2016 : (in thousands) 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 59,691 $ 96,500 Orchid Island Capital, Inc. common stock 2,349 3,291 MBS 1,038 1,425 Management agreement 813 1,267 Tax hedges 49 366 Accrued expenses 148 330 Other 661 697 64,749 103,876 Valuation allowance (20,224) (40,043) Net deferred tax assets $ 44,525 $ 63,833 As of December 31, 2017 and 2016 , Bimini Capital had tax capital loss carryforwards of approximately $0.3 million and $0.3 million, respectively, which can be used to offset future realized tax capital gains. The capital loss carryforwards will begin to expire in 2019. In addition, as of December 31, 2017 and 2016 , Bimini Capital had estimated federal NOL carryforwards of approximately $19.1 million and $19.3 million, respectively, and estimated Florida NOL carryforwards of $18.5 million and $18.6 million, respectively. The NOL carryforwards can be used to offset future taxable income and will begin to expire in 2028. As of December 31, 2017 , Royal Palm had tax capital loss carryforwards of approximately $0.1 million which can be used to offset future realized t ax capital gains. The capital loss carryforwards will begin to expire in 2022. In addition, as of December 31, 2017 , Royal Palm had estimated federal NOL carryforwards of approximately $253.5 million and estimated available Florida NOLs of approximately $26.0 m illion. As of December 31, 2016 , Royal Palm had estimated federal NOL carryforwards of approximately $257.0 million and estimated available Florida NOLs of approximately $29.5 million. These NOLs can be used to offset future taxable income and will begin to expi re in 2025. In connection with Orchid’s 2013 IPO, Bimini Advisors paid for, and expensed for GAAP purposes, certain offering costs totaling approximately $3.2 million. For tax purposes, these offering costs created an intangible asset related to the manag ement agreement with a tax basis of $3.2 million. The deferred tax asset related to the intangible asset at December 31, 2017 and 2016 total ed approximately $0.8 million and $1.3 million , respectively . In assessing the realizability of deferred tax assets, ma nagement 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 taxa ble income in periods prior to their expiration. The valuation allowance relates primarily to the ability to utilize the NOL carryforwards of Bimini Capital and Royal Palm in future periods and is based on management’s estimated projections of future taxa ble income. With respect to the utilization of NOL carryforwards at Bimini, management must estimate the dividends the Company will receive on its Orchid share holdings as well as the management fees and overhead sharing payments it will receive from Orchi d. With respect to the MBS portfolio at Royal Palm, management makes estimates of various metrics such as the yields on the assets it w ill a cquire, its future funding costs, future prepayment speeds and net interest margin , among others . Management must also estimate t he dividends it will receive on its Orchid shares and the cash flows it will receive on the retained interest s . Utilization of the NOL s is based on these estimates and the assumption s that management will be able to reinvest retained earnings in order to g row the MBS portfolio going forward and that market value will not be eroded due to adverse market conditions or hedging inefficiencies. These estimates and assumptions may change from year to year to the extent Orchid grows, thus increasing projected man agement fee s and overhead sharing payments, and/or market conditions change such that estimates with respect to the portfolio metrics warrant revisions. Royal Palm holds residual interests in various real estate mortgage investment conduits (“REMICs”), some of which generate excess inclusion income (“EII”), a type of taxable income pursuant to specific provisions of the Code. During 2010 (as part of the filing of i ts 2009 tax returns), Royal Palm reached a tax filing position related to the EII taxable income that was different from what was reported in previous periods , and included a notice of inconsistent treatment in its tax returns. Royal Palm continues to fil e its tax returns following its 2009 tax filing position, and it continues to include a notice of inconsistent treatment in each return. The Company does not believe it has any unrecognized tax benefits included in its consolidated financial statements. T he Company has not had any settlements in the current period with taxing authorities, nor has it recognized tax benefits as a result of a lapse of the applicable statute of limitations. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share (EPS) | NOTE 16 . EARNINGS PER SHARE Shares of Class B common s tock, participating and convertible into Class A c ommon s tock, are entitled to receive dividends in an amount equal to the dividends declared on each share of Class A c ommon s tock if, and when, authorized and declared by the Board of Directors. Following the provisions of FASB ASC 260, the Class B c ommon s tock is included in the computation of basic EPS using the two-class method, and consequently is pre sented separately from Class A c ommon s tock . Shares of Class B c ommon stock are not included in the computation of diluted Class A EPS as the conditions for conversion to Class A common stock were not met at December 31, 2017 and 2016 . Shares of Class C c ommon stock are not included in the basic EPS computation as these shares do not have participation rights. Shares of Class C c ommon stock are not included in the computation of diluted Class A EPS as the conditions for conversion to Class A common stock were not met at December 31, 2017 and 2016 . The Company has dividend eligible stock incentive plan shares that were outstanding during the years ended December 31, 2017 and 2016 . The basic and diluted per share computations include these unvested incentive plan shares if t here is income available to Class A common stock , as they have dividend participation rights. The stock incentive plan shares have no contractual obligation to share in losses. Since there is no such obligation, the incentive plan shares would not be inclu ded in the basic and diluted EPS computations when no income is available to Class A common stock even though they are considered participating securities . The table below reconciles the numerators and denominators of the basic and diluted EPS. (in thousands, except per-share information) 2017 2016 Basic and diluted EPS per Class A common share: (Loss) income attributable to Class A common shares: Basic and diluted $ (16,441) $ 3,378 Weighted average common shares: Class A common shares outstanding at the balance sheet date 12,661 12,632 Unvested dividend-eligible share based compensation outstanding at the balance sheet date - 70 Effect of weighting (28) (4) Weighted average shares-basic and diluted 12,633 12,698 (Loss) income per Class A common share: Basic and diluted $ (1.30) $ 0.27 (in thousands, except per-share information) 2017 2016 Basic and diluted EPS per Class B common share: (Loss) income attributable to Class B common shares: Basic and diluted $ (42) $ 8 Weighted average common shares: Class B common shares outstanding at the balance sheet date 32 32 Effect of weighting - - Weighted average shares-basic and diluted 32 32 (Loss) income per Class B common share: Basic and diluted $ (1.30) $ 0.27 |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 17 . 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 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 the appropri ate 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 2017 and 2016 . When determining fair value measurements, the Company considers the principal or most advantageous market in which it would transact and considers assumption s that market participants would use when pricing the asset. When possible, the Company looks to active and observable markets to price identical assets. When identical assets are not traded in active markets, the Company looks to market observable data f or 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 December 31, 2017 and 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) December 31, 2017 Mortgage-backed securities $ 209,692 $ - $ 209,692 $ - Orchid Island Capital, Inc. common stock 14,106 14,106 - - Retained interests 653 - - 653 December 31, 2016 Mortgage-backed securities $ 130,302 $ - $ 130,302 $ - 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 years ended December 31, 2017 and 2016 : (in thousands) Retained Interests 2017 2016 Balances, January 1 $ 1,114 $ 1,124 Gain included in earnings 645 2,425 Collections (1,106) (2,435) Balances, December 31 $ 653 $ 1,114 During the years ended December 31, 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 measurement s. The following table summarizes the significant quantitative information about our level 3 fair value measurements as of December 31, 2017 . Retained interest fair value ($ in thousands) $ 653 CPR Range Prepayment Assumption (Weighted Average) Constant Prepayment Rate 10% (10%) Severity Range Default Assumptions Probability of Default (Weighted Average) Range Of Loss Timing Real Estate Owned 100% 22.7% Next 10 Months Loans in Foreclosure 100% 22.7% Month 4 - 13 Loans 90 Day Delinquent 100% 45% Month 11-28 Loans 60 Day Delinquent 85% 45% Month 11-28 Loans 30 Day Delinquent 75% 45% Month 11-28 Current Loans 3.3% 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 11.5 - 14.5 (12.1) 27.50% (27.50%) Discounted Cash Flows Discounted Cash Flow 1.0 - 3.3 (2.4) 27.50% (27.50%) |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
SegmentReportingAbstract | |
SegmentReportingDisclosureTextBlock | NOTE 18 . SEGMENT INFORMATION The Company’s operations are classified into two principal reportable segments; the asset management segment and the investment portfolio segment. The asset management segment includes the investment advisory services provided by Bimini Advisors to Orchid and Royal P al m. As discussed in Note 2 , the revenues of the asset management segment consist of management fees and overhead reimbursements received pursuant to a management agreement with Orchid. Total revenue re ceived under this management agreement for the years ended December 31, 2017 and 2016 , were approximately $7.4 million and $5.5 million, respectively, accounting for approximately 46% and 45% of consolidated revenues, respectively. The investment portfolio s egment includes the investment activities conducted by Bimini Capital and Royal Palm. The investment portfolio segment receives revenue in the form of interest and dividend income on its investments. Segment information for the years ended December 31, 2017 and 2016 is as follows: (in thousands) Asset Investment Management Portfolio Corporate Eliminations Total 2017 Advisory services, external customers $ 7,431 $ - $ - $ - $ 7,431 Advisory services, other operating segments (1) 207 - - (207) - Interest and dividend income - 8,572 1 - 8,573 Interest expense - (1,796) (1,237) (2) - (3,033) Net revenues 7,638 6,776 (1,236) (207) 12,971 Other income - (4,306) 634 (3) - (3,672) Operating expenses (4) (3,016) (3,387) - - (6,403) Intercompany expenses (1) - (207) - 207 - Income (loss) before income taxes $ 4,622 $ (1,124) $ (602) $ - $ 2,896 Assets $ 1,632 $ 267,429 $ 15,528 $ - $ 284,589 Asset Investment Management Portfolio Corporate Eliminations Total 2016 Advisory services, external customers $ 5,489 $ - $ - $ - $ 5,489 Advisory services, other operating segments (1) 94 - - (94) - Interest and dividend income - 6,576 2 - 6,578 Interest expense - (747) (1,109) (2) - (1,856) Net revenues 5,583 5,829 (1,107) (94) 10,211 Other income - (2,675) 2,735 (3) - 60 Operating expenses (4) (2,640) (3,103) - - (5,743) Intercompany expenses (1) - (94) - 94 - Income (loss) before income taxes $ 2,943 $ (43) $ 1,628 $ - $ 4,528 Assets $ 1,856 $ 199,883 $ 21,131 $ - $ 222,870 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 19 . RELATED PARTY TRANSACTIONS Other Relationships with Orchid At December 31, 2017 and 2016 , the Company owned 1,520,036 and 1,395,036 shares of Orchid common stock, respectively, representing approximately 2.9% and 4.2% of Orchid’s outstanding common stock. During the years ended December 31, 2017 and 2016 , the Company received dividends on this common stock investment of approximately $2.5 million and $2.3 million, respectively. Robert Cauley, our Chief Executive Officer and Chairman of our Board of Directors, also serves as Chief Executive Officer and Chairman of the Board of Directors of Orchid, receives compensation from Orchid, and owns shares of common stock of Orchid. Also, Hunter Haas, our Chief Financial Officer, Chief Investment Officer and Treasurer, also serves as Chief Financial 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. Robert J. Dwyer and Frank E. Jaumot, our independent directors, each own shares of common stock of Orchid. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation The accompanying consolidated financial statements include the accounts of Bimini Capital, Bimini Advisors and 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 com mon share investment in a trust used in connection with the issuance of Bimini Capital's junior subordinated notes. See Note 11 for a description of the accounting used for this VIE. |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial state ments are prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States (“GAAP”). In the opinion of management, all adjustments considered necessary for a fair presentation of the Company's con solidated financial position, results of operations and cash flows have been included and are of a normal and recurring nature. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and ass umptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results co uld differ from those estimates. Significant estimates affecting the accompanying consolidated financial statements include determining the fair values of MBS, investment in Orchid common shares, derivatives and retained interests , and determining the amo unts of asset valuation allowances and the level of deferred tax asset allowances recorded for each accounting period . As described in more detail in Note 15, estimates used for the deferred tax assets and associated asset allowances are numerous and the p rojection periods extend over the remaining lives of the net operating losses, to 2029 in the case of Royal Palm and 2036 in the case of Bimini. Such estimates can change materially from year to year as market conditions change or Orchid Island Capital gr ows through the issuance of new equity. |
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 . Comprehensive income is the same as net income (loss) for all periods presented. |
Segment Policy | Segment Reporting The Company’s operations are classified into two principal reportable segments: the asset management segment and the investment portfolio segment. These segments are evaluated by management in deciding how to allocate resources and in assessing performance. The accounting policies of the operating segments are the same as the Compan y’s accounting policies described in this note with the exception that inter-segment revenues and expenses are included in the presentation of segment results. For further information see Note 18 . |
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. The following table presents the Company’s cash, cash equivalents and restricted cash as of December 31, 2017 and 2016 . (in thousands) 2017 2016 Cash and cash equivalents $ 6,103,250 $ 4,429,459 Restricted cash 2,649,610 1,221,978 Total cash, cash equivalents and restricted cash $ 8,752,860 $ 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 December 31, 2017 , the Company’s cash deposits exceeded federally insured limits by approximately $3.8 million. Restricted cash balances are uninsured, but are held in separate cus tomer accounts that are segregated from the general funds of the counterparty. The Company limits uninsured balances to only large, well-known banks and derivative counterparties and believes that it is not exposed to significant credit risk on cash and c ash equivalents or restricted cash balances. |
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 Adv isors 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. |
Mortgage-Backed Securities | Mortgage-Backed Securities The Company invests primarily in mortgage pass-through (“PT”) certific ates, collateralized mortgage obligations, and interest-only (“IO”) securities and inverse interest-only (“IIO”) securities representing interest in or obligations backed by pools of mortgage-backed loans. T he 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 ope rations for a particular reporting period and is consistent with the underlying economics and how the portfolio is managed. The Company records MBS transactions on the trade date. Security purchases that have not settled as of the balance sheet date are included in the MBS balance with an offsetting liability recorded, whereas securities sold that have not settled as of the balance sheet date are removed from the MBS balance with an offsetting receivable recorded. The fair value of the Company’s investme nt 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 particip ants at the measurement date. The fair value measurement assumes that the transaction to sell the asset or transfer the liability either occurs in the principal market for the asset or liability, or in the absence of a principal market, occurs in the most advantageous market for the asset or liability. Estimated fair values for MBS are based on independent pricing sources and/or third party broker quotes, when available. Income on PT MBS is based on the stated interest rate of the security. Premiums or d iscounts present at the date of purchase are not amortized. Premium lost and discount accretion resulting from monthly principal repayments are reflected in unrealized gains (losses) on MBS in the c onsolidated s tatement s of o peration s . For IO securities, the income is accrued based on the carrying value and the effective yield. The difference between income accrued and the interest received on the security is characterized as a return of investment and serves to reduce the asset’s carrying value. At each reporting date, the effective yield is adjusted prospectively from the reporting period based on the new estimate of prepayments and the contractual terms of the security. For IIO securities, effective yield and income recognition calculations also take i nto account the index value applicable to the security. Changes in fair value of MBS during each reporting period are recorded in earnings and reported as unrealized gains or losses on mortgage-backed securities in the accompanying consolidated statements of operations. 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 pri ncipal repayments during the period. |
Orchid Island Capital Common Stock | 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 the consolidated statements of operations for the year ended December 31, 2017 . We estimate the fair value of our investment in Orchid on a market approach using “Level 1” inputs based on the quoted market price of Orchid’s common stock on a national stock exchange. Electing the fair value option requires the Company to record changes in fair value in the consolidated statements of operations, which, in management’s view, more appropriately reflects the results of our operations for a particular reporting period and is consistent with how the investment is managed. |
Retained Interests | Retained Interests in Securitizations 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 the consolidated statements of operations . 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 e xposures, 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 derivatives in the future. The Company ha s elected not to treat any of its derivative financial instruments as hedges in order to align the accounting treatment of its derivative instruments with the treatment of its portfolio assets under the fair value option election. FASB ASC Topic 815, Deriv atives and Hedging , requires that all derivative instruments be carried at fair value. Changes in fair value are recorded in the consolidated statements of operations 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 market value of the derivatives. In the event of default by a counterparty, the Compa ny 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 Topi c 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, Eurodoll ar 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 presen ted in Note 17 of the consolidated financial statements. The estimated fair value of cash and cash equivalents, restricted cash, accrued interest receivable, other assets, repurchase agreements , accrued interest payable and other liabilities generally a pproximates their carrying value as of December 31, 2017 and December 31, 2016 , due to the short-term nature of these financial instruments. It is impractical to estimate the fair value of the Company’s junior subordinated notes. Currently, there is a limi ted 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 instrument s is presented in Note 11 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 th e assets. |
Repurchase Agreements | Repurchase Agreements The Company finances the acquisition of the majority of its PT MBS through the use of repurchase agreements under master repurchase agreements. Pursuant to ASC Topic 860, Transfers and Servicing , the Company accounts for r epurchase transactions as collateralized financing transactions, which are carried at their contractual amounts, including accrued interest, as specified in the respective agreements. |
Share-Based Compensation | Share-Based Compensation The Company follows the provisions of ASC Top ic 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 forfeiture s may occur, would result in a revised forfeiture rate which would be accounted for prospectively as a change in an estimate. For transactions with non-employees in which services are performed in exchange for the Company’s common stock or other equity ins truments, 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 pr ovisions 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 p er share (“EPS”) on the face of the consolidated statement of operations. Basic EPS is calculated as income available to common stockholders divided by the weighted average number of common shares outstanding during the period. Dilut ed EPS is calculated us ing 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. Outstanding shares of Class B Common Stock, participating and convertible into Class A Common Stock, are entitled to receive dividends in an amount equal to the dividends declared on each share of Class A Common Stock if, as and when authorized and declared by the Board of Directors. Accordingly, sh ares of the Class B Common Stock are included in the computation of basic EPS using the two-class method and, consequently, are presented separately from Class A Common Stock. The shares of Class C Common Stock are not included in the basic EPS computatio n as these shares do not have participation rights. The outstanding shares of Class B and Class C Common Stock are not included in the computation of diluted EPS for the Class A Common Stock as the conditions for conversion into shares of Class A Common St ock 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 a n LLC wholly-owned by Bimini Capital. Beginning with the tax period starting on February 1, 2 016, 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, 201 4 remain open for examination. Although management believes its calculations for tax returns are correct and the positions taken thereon are reasonable, the final outcome of tax audits could be materially different from the tax returns filed by the Company, and those differences could result in significant costs or benefits to the Company. The Company measures, recognizes and presents its uncertain tax positions in accordance with ASC Topic 740, Income Taxes . Under that guidance, the Company assesses the l ikelihood, 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 informa tion 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 b ased 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 cla imed on a tax return is referred to as an unrecognized tax benefit and is recorded as a liability in the consolidated balance sheets . The C ompany records income tax-related interest and penalties, if applicable, within the income tax provision. On Decembe r 22, 2017, the U.S. Tax Cuts and Jobs Act (the “Tax Reform Act”) was signed into law by President Trump. The Tax Reform Act significantly revised the U.S. corporate income tax code by, among other things, lowering the U.S. corporate tax rate from 35% to 2 1% effective January 1, 2018. On the same date, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 which specifies, among other things, that reasonable estimates of the income tax effects of the Tax Reform Act should be used, i f determinable. The C ompany has accounted for the effects of the Tax Reform Act using reasonable estimates based on currently available information and its interpretations thereof. This accounting may change due to, among other things, changes in interpret ations the Co mpany has made and the issuance of new tax or accounting guidance. GAAP requires that the effects of a change in tax rate on the value of deferred tax assets and deferred tax liabilities be recognized upon enactment. See Note 15 for further details of the impact of the Tax Reform Act on the Company. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to current period presentations. |
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 components 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 adopted the ASU beginning with the first quarter of 2017. The prior peri od consolidated statement of cash flows has been retroactively 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 within those years, beginning after December 15, 2017. Early applicatio n is permitted. The Company does not believe the adoption of this ASU will have a material impact on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – 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 model (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 does not believe th e adoption of this ASU will have a material impact on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabi lities. 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 within those years, beginning after Dece mber 15, 2017 and, for most provisions, is effective using the cumulative-effect transition approach. Early application is permitted for certain provisions. The Company does not believe the adoption of this ASU will have a material impact on its consolid ated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which implements a common revenue standard and clarifies the principles used for recognizing revenue. The amendments in the ASU clarify that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in ASU No. 20 14-09 will be effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. A significant amount of the Company’s revenues are derived from net interest income on financial asset s and liabilities, which are excluded from the scope of the amended guidance. The Company does not believe the adoption of this ASU will have a material impact on its consolidated financial statements. |
ADVISORY SERVICES (Tables)
ADVISORY SERVICES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Advisory Services [Abstract] | |
Schedule of Advisory Fee Income [Table Text Block] | The following table summarizes the advisory services revenue from Orchid for the years ended December 31, 2017 and 2016 . (in thousands) 2017 2016 Management fee $ 5,855 $ 4,188 Allocated overhead 1,576 1,301 Total $ 7,431 $ 5,489 |
MORTGAGE-BACKED SECURITIES (Tab
MORTGAGE-BACKED SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Mortgage Backed Securities [Line Items] | |
Schedule of Mortgage-Backed Securities Reconciliation | The following table presents the Company’s MBS portfolio as of December 31, 2017 and 2016 : (in thousands) 2017 2016 Pass-Through MBS: Fixed-rate Mortgages $ 207,179 $ 124,299 Total Pass-Through MBS 207,179 124,299 Structured MBS: Interest-Only Securities 1,476 2,654 Inverse Interest-Only Securities 1,037 3,349 Total Structured MBS 2,513 6,003 Total $ 209,692 $ 130,302 |
Schedule of MBS portfolio according to the contractual maturities of the securities in the portfolio | The following table summarizes the Company’s MBS portfolio as of December 31, 2017 and 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) 2017 2016 Greater than or equal to ten years $ 209,692 $ 130,302 Total $ 209,692 $ 130,302 |
RETAINED INTERESTS IN SECURIT29
RETAINED INTERESTS IN SECURITIZATIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retained Interests In Securitizations [Abstract] | |
Schedule of 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 December 31, 2017 and 2016 : (in thousands) Series Issue Date 2017 2016 HMAC 2004-2 May 10, 2004 $ - $ 143 HMAC 2004-3 June 30, 2004 177 364 HMAC 2004-4 August 16, 2004 386 463 HMAC 2004-5 September 28, 2004 90 144 Total $ 653 $ 1,114 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Property Plant and Equipment [TextBlock] | The composition of property and equipment at December 31, 2017 and 2016 follows: (in thousands) 2017 2016 Land $ 2,247 $ 2,247 Buildings and improvements 1,827 1,827 Computer equipment and software 165 177 Office furniture and equipment 198 180 Total cost 4,437 4,431 Less accumulated depreciation and amortization 1,078 1,024 Property and equipment, net $ 3,359 $ 3,407 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Assets Abstract | |
Schedule of Other Assets [TableTextBlock] | The composition of other assets at December 31, 2017 and 2016 follows: (in thousands) 2017 2016 Prepaid expenses $ 468 $ 756 Servicing advances 243 245 Servicing sale receivable, including accrued interest 222 309 Investment in Bimini Capital Trust II 804 804 Due from affiliates 797 566 Other 220 262 Total other assets $ 2,754 $ 2,942 |
REPURCHASE AGREEMENTS (Tables)
REPURCHASE AGREEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Repurchase Agreements [Abstract] | |
Schedule of repurchase agreements and remaining maturities | As of December 31, 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 December 31, 2017 Fair value of securities pledged, including accrued interest receivable $ - $ 94,649 $ 115,350 $ - $ 209,999 Repurchase agreement liabilities associated with these securities $ - $ 90,686 $ 109,497 $ - $ 200,183 Net weighted average borrowing rate - 1.47% 1.56% - 1.52% 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 INSTRUME33
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Eurodollar Futures Positions | Eurodollar and T-Note futures are cash settled futures contracts on an interest rate, with gains and losses credited or charged to the Company’s cash accounts on a daily basis. A minimum balance, or “margin”, is required to be maintained in the account on a daily basis. The tables below present information related to the Company’s Eurodollar futures positions at December 31, 2017 and December 31, 2016 . ($ in thousands) As of December 31, 2017 Repurchase Agreement Funding Hedges Average Weighted Weighted Contract Average Average Notional Entry LIBOR Open Expiration Year Amount Rate Rate Equity (1) 2018 $ 60,000 1.90% 1.97% $ 41 2019 60,000 2.32% 2.27% (31) 2020 60,000 2.60% 2.36% (145) 2021 60,000 2.80% 2.42% (230) Total / Weighted Average $ 60,000 2.41% 2.25% $ (365) ($ in thousands) As of December 31, 2017 Junior Subordinated Debt Funding Hedges Average Weighted Weighted Contract Average Average Notional Entry LIBOR Open Expiration Year Amount Rate Rate Equity (1) 2018 $ 26,000 1.84% 1.97% $ 33 2019 26,000 1.63% 2.27% 166 2020 26,000 1.95% 2.36% 107 2021 26,000 2.22% 2.42% 51 Total / Weighted Average $ 26,000 1.91% 2.25% $ 357 ($ in thousands) As of December 31, 2016 Repurchase Agreement Funding Hedges Average Weighted Weighted Contract Average Average Notional Entry LIBOR 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 LIBOR 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 |
Schedule of the effect of the Company's deriviative financial instruments on the consolidated statement of operations | 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 years ended December 31, 2017 and 2016 . (in thousands) Consolidated 2017 2016 Eurodollar futures contracts (short positions) - Repurchase agreement funding hedges $ (32) $ (318) Eurodollar futures contracts (short positions)- Junior subordinated debt funding hedges (14) 302 Net losses on derivative instruments $ (46) $ (16) |
PLEDGED ASSETS (Tables)
PLEDGED ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments Pledged as Collateral [Abstract] | |
Schedule of assets pledged as collateral under our repurchase agreements, prime brokerage clearing accounts, derivative agreements and insurance capital by type, including securities pledged related to securities sold but not yet settled | Assets Pledged to Counterparties The tables below summarize our assets pledged as collateral under our repurchase agreements and derivative agreements as of December 31, 2017 and 2016 . ($ in thousands) As of December 31, 2017 Repurchase Derivative Assets Pledged to Counterparties Agreements Agreements Total PT MBS - at fair value $ 207,179 $ - $ 207,179 Structured MBS - at fair value 2,091 - 2,091 Accrued interest on pledged securities 730 - 730 Cash 2,208 442 2,650 Total $ 212,208 $ 442 $ 212,650 ($ 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 LIABILI35
OFFSETTING ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Offsetting [Abstract] | |
Offsetting of Liabilties [Table Text Block] | The Company’s 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 arrangements as if the Company had presented them on a net basis as of December 31, 2017 and 2016 . (in thousands) Offsetting of Liabilities Net Amount Gross Amount Not Offset in the of Liabilities Consolidated Balance Sheet Gross Amount Presented Financial Gross Amount Offset in the in the Instruments Cash of Recognized Consolidated Consolidated Posted as Posted as Net Liabilities Balance Sheet Balance Sheet Collateral Collateral Amount December 31, 2017 Repurchase Agreements $ 200,183 $ - $ 200,183 $ (197,975) $ (2,208) $ - December 31, 2016 Repurchase Agreements $ 121,828 $ - $ 121,828 $ (121,372) $ (456) $ - |
CAPITAL STOCK (Tables)
CAPITAL STOCK (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Capital Stock [Abstract] | |
Issuances of Common Stock | Issuances of Common Stock The table below presents information related to the Company’s Class A Common Stock issued during the years ended December 31, 2017 and 2016 . Shares Issued Related To: 2017 2016 Incentive plan shares 29,000 258,333 Total shares of Class A Common Stock issued 29,000 258,333 |
STOCK INCENTIVE PLANS (Tables)
STOCK INCENTIVE PLANS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Employee Benefits And Share Based Compensation [Abstract] | |
Schedule of Performance Units outstanding | The following table presents the activity related to Performance Units during the years ended December 31, 2017 and December 31, 2016 : 2017 2016 Weighted- Weighted- Average Average Grant-Date Grant-Date Shares Fair Value Shares Fair Value Nonvested, at January 1 70,000 $ 1.23 77,500 $ 1.22 Vested during the period (29,000) 1.78 - - Forfeited during the period - - (7,500) 1.15 Nonvested, at December 31 41,000 $ 0.84 70,000 $ 1.23 ($ in thousands) 2017 2016 Compensation expense recognized during the year $ 28 $ 27 Unrecognized compensation expense at year end $ 11 $ 39 Weighted-average remaining vesting term (in years) 0.9 1.5 Intrinsic value of unvested shares at year end $ 107 $ 183 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock | The income tax provision included in the consolidated statements of operations consists of the following for the years ended December 31, 2017 an d 2016 : (in thousands) 2017 2016 Current $ 70 $ 143 Deferred 19,308 999 Income tax provision $ 19,378 $ 1,142 |
ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock | The income tax provision differs from the amount computed by applying the federal income tax statutory rate of 35 percent on income before income tax expense. A reconciliation of income tax at the statutory rate to income tax provision for the years ended December 31, 2017 and 2016 is presented in the table below. (in thousands) 2017 2016 Federal tax based on statutory rate applicable for each year $ 984 $ 1,539 State income tax 157 245 Reduction of deferred tax asset due to enacted decrease in future tax rates 25,852 - Reduction of deferred tax asset valuation allowance (7,628) (780) Other 13 138 Income tax provision $ 19,378 $ 1,142 |
ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock | Deferred tax assets consisted of the following as of December 31, 2017 and 2016 : (in thousands) 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 59,691 $ 96,500 Orchid Island Capital, Inc. common stock 2,349 3,291 MBS 1,038 1,425 Management agreement 813 1,267 Tax hedges 49 366 Accrued expenses 148 330 Other 661 697 64,749 103,876 Valuation allowance (20,224) (40,043) Net deferred tax assets $ 44,525 $ 63,833 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of reconciling the numerator and denominator of EPS | The table below reconciles the numerators and denominators of the basic and diluted EPS. (in thousands, except per-share information) 2017 2016 Basic and diluted EPS per Class A common share: (Loss) income attributable to Class A common shares: Basic and diluted $ (16,441) $ 3,378 Weighted average common shares: Class A common shares outstanding at the balance sheet date 12,661 12,632 Unvested dividend-eligible share based compensation outstanding at the balance sheet date - 70 Effect of weighting (28) (4) Weighted average shares-basic and diluted 12,633 12,698 (Loss) income per Class A common share: Basic and diluted $ (1.30) $ 0.27 (in thousands, except per-share information) 2017 2016 Basic and diluted EPS per Class B common share: (Loss) income attributable to Class B common shares: Basic and diluted $ (42) $ 8 Weighted average common shares: Class B common shares outstanding at the balance sheet date 32 32 Effect of weighting - - Weighted average shares-basic and diluted 32 32 (Loss) income per Class B common share: Basic and diluted $ (1.30) $ 0.27 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets (liabilities) measured at fair value on a recurring basis | The following table presents financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 and 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) December 31, 2017 Mortgage-backed securities $ 209,692 $ - $ 209,692 $ - Orchid Island Capital, Inc. common stock 14,106 14,106 - - Retained interests 653 - - 653 December 31, 2016 Mortgage-backed securities $ 130,302 $ - $ 130,302 $ - 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 | 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 years ended December 31, 2017 and 2016 : (in thousands) Retained Interests 2017 2016 Balances, January 1 $ 1,114 $ 1,124 Gain included in earnings 645 2,425 Collections (1,106) (2,435) Balances, December 31 $ 653 $ 1,114 |
Quantitative Information About Level 3 Fair Value Measurements | The following table summarizes the significant quantitative information about our level 3 fair value measurements as of December 31, 2017 . Retained interest fair value ($ in thousands) $ 653 CPR Range Prepayment Assumption (Weighted Average) Constant Prepayment Rate 10% (10%) Severity Range Default Assumptions Probability of Default (Weighted Average) Range Of Loss Timing Real Estate Owned 100% 22.7% Next 10 Months Loans in Foreclosure 100% 22.7% Month 4 - 13 Loans 90 Day Delinquent 100% 45% Month 11-28 Loans 60 Day Delinquent 85% 45% Month 11-28 Loans 30 Day Delinquent 75% 45% Month 11-28 Current Loans 3.3% 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 11.5 - 14.5 (12.1) 27.50% (27.50%) Discounted Cash Flows Discounted Cash Flow 1.0 - 3.3 (2.4) 27.50% (27.50%) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SegmentReportingAbstract | |
ScheduleOfSegmentReportingInformationBySegmentTextBlock | Segment information for the years ended December 31, 2017 and 2016 is as follows: (in thousands) Asset Investment Management Portfolio Corporate Eliminations Total 2017 Advisory services, external customers $ 7,431 $ - $ - $ - $ 7,431 Advisory services, other operating segments (1) 207 - - (207) - Interest and dividend income - 8,572 1 - 8,573 Interest expense - (1,796) (1,237) (2) - (3,033) Net revenues 7,638 6,776 (1,236) (207) 12,971 Other income - (4,306) 634 (3) - (3,672) Operating expenses (4) (3,016) (3,387) - - (6,403) Intercompany expenses (1) - (207) - 207 - Income (loss) before income taxes $ 4,622 $ (1,124) $ (602) $ - $ 2,896 Assets $ 1,632 $ 267,429 $ 15,528 $ - $ 284,589 Asset Investment Management Portfolio Corporate Eliminations Total 2016 Advisory services, external customers $ 5,489 $ - $ - $ - $ 5,489 Advisory services, other operating segments (1) 94 - - (94) - Interest and dividend income - 6,576 2 - 6,578 Interest expense - (747) (1,109) (2) - (1,856) Net revenues 5,583 5,829 (1,107) (94) 10,211 Other income - (2,675) 2,735 (3) - 60 Operating expenses (4) (2,640) (3,103) - - (5,743) Intercompany expenses (1) - (94) - 94 - Income (loss) before income taxes $ 2,943 $ (43) $ 1,628 $ - $ 4,528 Assets $ 1,856 $ 199,883 $ 21,131 $ - $ 222,870 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES - Organization (Details) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Accounting Policies [Abstract] | |
Entity Incorporation, Date of Incorporation | Sep. 24, 2003 |
Entity Incorporation, State Country Name | Maryland |
Uninsured Cash Balances | $ 3,800,000 |
SIGNIFICANT ACCOUNTING POLICI43
SIGNIFICANT ACCOUNTING POLICIES - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | |||
Cash and cash equivalents | $ 6,103,250 | $ 4,429,459 | $ 6,712,483 |
Restricted cash | 2,649,610 | 1,221,978 | |
Cash Cash Equivalents And Restricted Cash | $ 8,752,860 | $ 5,651,437 | $ 6,712,483 |
ADVISORY SERVICES (Details)
ADVISORY SERVICES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Advisory Services [Line Items] | ||
Management Fee Revenue | $ 7,431,359 | $ 5,488,691 |
Orchid Island Capital [Member] | ||
Advisory Services [Line Items] | ||
Management Fee Revenue | 7,431,000 | 5,489,000 |
Due From Affiliate | 800,000 | 600,000 |
Officers Compensation | 600,000 | 800,000 |
Orchid Island Capital [Member] | Management Fees [Member] | ||
Advisory Services [Line Items] | ||
Management Fee Revenue | 5,855,000 | 4,188,000 |
Orchid Island Capital [Member] | Overhead Allocation [Member] | ||
Advisory Services [Line Items] | ||
Management Fee Revenue | $ 1,576,000 | $ 1,301,000 |
MORTGAGE-BACKED SECURITIES - M
MORTGAGE-BACKED SECURITIES - MBS Portfolio (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair Value | $ 209,692,132 | $ 130,301,989 |
Residential Mortgage Backed Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair Value | 209,692,132 | 130,301,989 |
Residential Mortgage Backed Securities [Member] | Total Pass Through Certificates [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair Value | 207,179,000 | 124,299,000 |
Residential Mortgage Backed Securities [Member] | Total Pass Through Certificates [Member] | Fixed Rate Mortgages [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair Value | 207,179,000 | 124,299,000 |
Residential Mortgage Backed Securities [Member] | Total Strucutured MBS Certificates [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair Value | 2,513,000 | 6,003,000 |
Residential Mortgage Backed Securities [Member] | Total Strucutured MBS Certificates [Member] | Interest Only Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair Value | 1,476,000 | 2,654,000 |
Residential Mortgage Backed Securities [Member] | Total Strucutured MBS Certificates [Member] | Inverse Interest Only [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair Value | $ 1,037,000 | $ 3,349,000 |
MORTGAGE-BACKED SECURITIES -46
MORTGAGE-BACKED SECURITIES - MBS Portfolio By Contractual Maturities (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Mortgage Backed Securities [Abstract] | ||
Greater than or equal to ten years | $ 209,692,000 | $ 130,302,000 |
Total mortgage-backed securities | $ 209,692,132 | $ 130,301,989 |
RETAINED INTERESTS IN SECURIT47
RETAINED INTERESTS IN SECURITIZATIONS (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Retained Interestes Securitzations [Line Items] | ||
Transferor's Interests in Transferred Financial Assets, Fair Value | $ 653,380 | $ 1,113,736 |
HMAC 2004-2 [Member] | ||
Retained Interestes Securitzations [Line Items] | ||
Transferor's Interests in Transferred Financial Assets, Fair Value | 0 | 143,000 |
HMAC 2004-3 [Member] | ||
Retained Interestes Securitzations [Line Items] | ||
Transferor's Interests in Transferred Financial Assets, Fair Value | 177,000 | 364,000 |
HMAC 2004-4 [Member] | ||
Retained Interestes Securitzations [Line Items] | ||
Transferor's Interests in Transferred Financial Assets, Fair Value | 386,000 | 463,000 |
HMAC 2004-5 [Member] | ||
Retained Interestes Securitzations [Line Items] | ||
Transferor's Interests in Transferred Financial Assets, Fair Value | $ 90,000 | $ 144,000 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 4,437,000 | $ 4,431,000 |
Accumulated Depreciation | 1,078,000 | 1,024,000 |
Property and equipment, net | 3,359,312 | 3,407,040 |
Depreciation | 3,359,000 | 3,407,000 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 2,247,000 | 2,247,000 |
Building and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 1,827,000 | 1,827,000 |
Computer equipment and software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 165,000 | 177,000 |
Officer furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 198,000 | $ 180,000 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Other Assets [Line Items] | ||
Other assets | $ 2,754,474 | $ 2,942,139 |
Prepaid expenses [Member] | ||
Other Assets [Line Items] | ||
Other assets | 468,000 | 756,000 |
Servicing advances [Member] | ||
Other Assets [Line Items] | ||
Other assets | 243,000 | 245,000 |
Servicing sale receivable [Member] | ||
Other Assets [Line Items] | ||
Other assets | 222,000 | 309,000 |
Investment in Bimini Capital Trust II [Member] | ||
Other Assets [Line Items] | ||
Other assets | 804,000 | 804,000 |
Due from affiliates [Member] | ||
Other Assets [Line Items] | ||
Other assets | 797,000 | 566,000 |
Other [Member] | ||
Other Assets [Line Items] | ||
Other assets | $ 220,000 | $ 262,000 |
REPURCHASE AGREEMENTS - Narrati
REPURCHASE AGREEMENTS - Narrative (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Outstanding repurchase obligations | $ 200,182,751 | $ 121,827,586 |
Fair Value of securities pledged, including accrued interest receivable | $ 209,999,000 | $ 130,071,000 |
Net weighted average borrowing rate | 1.52% | 0.99% |
Aggregate amount at risk will all counterparties | $ 8,400,000 | $ 11,700,000 |
REPURCHASE AGREEMENTS - Maturit
REPURCHASE AGREEMENTS - Maturities (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Fair Value of securities pledged, including accrued interest receivable | $ 209,999,000 | $ 130,071,000 |
Outstanding repurchase obligations | $ 200,182,751 | $ 121,827,586 |
Net weighted average borrowing rate | 1.52% | 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 |
Outstanding repurchase obligations | $ 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 | $ 94,649,000 | $ 71,565,000 |
Outstanding repurchase obligations | $ 90,686,000 | $ 66,919,000 |
Net weighted average borrowing rate | 1.47% | 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 | $ 115,350,000 | $ 41,334,000 |
Outstanding repurchase obligations | $ 109,497,000 | $ 38,733,000 |
Net weighted average borrowing rate | 1.56% | 0.96% |
Greater Than 90 days [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Fair Value of securities pledged, including accrued interest receivable | $ 0 | $ 17,172,000 |
Outstanding repurchase obligations | $ 0 | $ 16,176,000 |
Net weighted average borrowing rate | 0.00% | 0.98% |
DERIVATIVE FINANCIAL INSTRUME52
DERIVATIVE FINANCIAL INSTRUMENTS - Eurodollar Futures Positions (Details) - Short [Member] - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Junior Subordinated Debt Funding Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 26,000,000 | $ 26,000,000 |
Entry Rate | 1.91% | 1.91% |
Weighted Average Effective Rate | 2.25% | 2.08% |
Open Equity | $ 357,000 | $ 217,000 |
Junior Subordinated Debt Funding Hedges [Member] | Year 2017 Expiration [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 26,000,000 | |
Entry Rate | 1.93% | |
Weighted Average Effective Rate | 1.28% | |
Open Equity | $ (169,000) | |
Junior Subordinated Debt Funding Hedges [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 | 1.97% | 1.82% |
Open Equity | $ 33,000 | $ (6,000) |
Junior Subordinated Debt Funding Hedges [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 | 2.27% | 2.21% |
Open Equity | $ 166,000 | $ 150,000 |
Junior Subordinated Debt Funding Hedges [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 | 2.36% | 2.45% |
Open Equity | $ 107,000 | $ 132,000 |
Junior Subordinated Debt Funding Hedges [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 | 2.42% | 2.64% |
Open Equity | $ 51,000 | $ 110,000 |
Repurchase Agreement Funding Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 60,000,000 | $ 60,000,000 |
Entry Rate | 2.41% | 2.19% |
Weighted Average Effective Rate | 2.25% | 2.08% |
Open Equity | $ (365,000) | $ (325,000) |
Repurchase Agreement Funding Hedges [Member] | Year 2017 Expiration [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 60,000,000 | |
Entry Rate | 1.32% | |
Weighted Average Effective Rate | 1.28% | |
Open Equity | $ (26,000) | |
Repurchase Agreement Funding Hedges [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 | 1.97% | 1.82% |
Open Equity | $ 41,000 | $ (49,000) |
Repurchase Agreement Funding Hedges [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 | 2.27% | 2.21% |
Open Equity | $ (31,000) | $ (69,000) |
Repurchase Agreement Funding Hedges [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 | 2.36% | 2.45% |
Open Equity | $ (145,000) | $ (88,000) |
Repurchase Agreement Funding Hedges [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 | 2.42% | 2.64% |
Open Equity | $ (230,000) | $ (93,000) |
DERIVATIVE FINANCIAL INSTRUME53
DERIVATIVE FINANCIAL INSTRUMENTS - Effect on the consolidated statements of operations(Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
(Losses) gains on derivative instruments | $ (46,031) | $ (15,638) |
Eurodollar Future [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
(Losses) gains on derivative instruments | (46,000) | (16,000) |
Eurodollar Future [Member] | Junior Subordinated Debt Funding Hedges [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
(Losses) gains on derivative instruments | (14,000) | 302,000 |
Eurodollar Future [Member] | Repurchase Agreement Funding Hedges [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
(Losses) gains on derivative instruments | $ (32,000) | $ (318,000) |
PLEDGED ASSETS - Assets Pledged
PLEDGED ASSETS - Assets Pledged to Counterparties (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Financial Instruments, Owned and Pledged as Collateral, at Fair Value | $ 209,269,791 | $ 129,582,386 |
Accrued interest receivable | 746,121 | 512,760 |
Restricted cash | 2,649,610 | 1,221,978 |
Repurchase Agreements [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Accrued interest receivable | 730,000 | 489,000 |
Restricted cash | 2,208,000 | 456,000 |
Total Assets Pledged To Counterparties | 212,208,000 | 130,527,000 |
Derivative [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Accrued interest receivable | 0 | 0 |
Restricted cash | 442,000 | 766,000 |
Total Assets Pledged To Counterparties | 442,000 | 766,000 |
Total Pledged Financial Instruments [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Accrued interest receivable | 730,000 | 489,000 |
Restricted cash | 2,650,000 | 1,222,000 |
Total Assets Pledged To Counterparties | 212,650,000 | 131,293,000 |
Residential Mortgage Backed Securities [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Financial Instruments, Owned and Pledged as Collateral, at Fair Value | 209,269,791 | 129,582,386 |
Residential Mortgage Backed Securities [Member] | Repurchase Agreements [Member] | Mortgage Backed Securities Pass Through Certificates [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Financial Instruments, Owned and Pledged as Collateral, at Fair Value | 207,179,000 | 124,298,000 |
Residential Mortgage Backed Securities [Member] | Repurchase Agreements [Member] | Mortgage Backed Securities Structured Certificates [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Financial Instruments, Owned and Pledged as Collateral, at Fair Value | 2,091,000 | 5,284,000 |
Residential Mortgage Backed Securities [Member] | Derivative [Member] | Mortgage Backed Securities Pass Through Certificates [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Financial Instruments, Owned and Pledged as Collateral, at Fair Value | 0 | 0 |
Residential Mortgage Backed Securities [Member] | Derivative [Member] | Mortgage Backed Securities Structured Certificates [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Financial Instruments, Owned and Pledged as Collateral, at Fair Value | 0 | 0 |
Residential Mortgage Backed Securities [Member] | Total Pledged Financial Instruments [Member] | Mortgage Backed Securities Pass Through Certificates [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Financial Instruments, Owned and Pledged as Collateral, at Fair Value | 207,179,000 | 124,298,000 |
Residential Mortgage Backed Securities [Member] | Total Pledged Financial Instruments [Member] | Mortgage Backed Securities Structured Certificates [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Financial Instruments, Owned and Pledged as Collateral, at Fair Value | $ 2,091,000 | $ 5,284,000 |
OFFSTTING ASSETS AND LIABILITIE
OFFSTTING ASSETS AND LIABILITIES - Offsetting of Liabilties (Details) - Repurchase Agreements [Member] - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Offsetting Liabilities [Line Items] | ||
Gross Amount Of Recognized Liabilties | $ 200,183,000 | $ 121,828,000 |
Gross Amount Of Liabilties Offset In The Balance Sheet | 0 | 0 |
Net Amount Of Liabilities Presented In The Balance Sheet | 200,183,000 | 121,828,000 |
Gross Amount Of Financial Instruments Posted Not Offset in Balance Sheet | (197,975,000) | (121,372,000) |
Gross Amounts Of Cash Posted Not Offset In Balance Sheet | (2,208,000) | (456,000) |
Net Amount Of Liabilities | $ 0 | $ 0 |
TRUST PREFERRED SECURITIES - Na
TRUST PREFERRED SECURITIES - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Outstanding Principal Balance | $ 26,804,440 | $ 26,804,440 |
Basis Spread on Variable Rate | 3.50% | |
Interest Rate at Period End | 5.09% |
CAPITAL STOCK - Narrative (Deta
CAPITAL STOCK - Narrative (Details) - $ / shares | Dec. 31, 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 |
Common Stock Par Or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock Shares Authorized | 100,000,000 | 100,000,000 |
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 |
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 |
Conversion Threshhold | $ 150 | |
Maximum Ownership Percentage | 3.00% | |
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 |
Conversion Threshhold | $ 150 | |
Maximum Ownership Percentage | 3.00% | |
Preferred Undesignated [Member] | ||
Class of Stock [Line Items] | ||
Preferred Shares Authorized | 9,900,000 | 9,900,000 |
Series A Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred Stock Par Or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Shares Authorized | 100,000 | 100,000 |
CAPITAL STOCK - Issuances of Co
CAPITAL STOCK - Issuances of Common Stock (Details) - shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Class A Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Vesting Incentive Plan Shares | 29,000 | 258,333 |
CAPITAL STOCK - Rights Plan (De
CAPITAL STOCK - Rights Plan (Details) - Series A Preferred Stock [Member] | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Class of Warrant or Right [Line Items} | |
Exercise Conversion Rate | shares | 0.0001 |
Exercise Price | $ / shares | $ 4.76 |
Percentage Of Common Stock Person Or Group Acquires To Make Rights Exercisable | 4.90% |
Rights Adoption Date | Dec. 21, 2015 |
Rights Expiration Date | Dec. 21, 2025 |
STOCK INCENTIVE PLAN - Descript
STOCK INCENTIVE PLAN - Descriptions of Plan (Details) | Dec. 31, 2017shares |
Employee Benefits And Share Based Compensation [Abstract] | |
Maximum Number of Shares to Be Issued the Plan | 4,000,000 |
STOCK INCENTIVE PLAN - Incentiv
STOCK INCENTIVE PLAN - Incentive Share Awards (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Issued During Period Value Share Based Compensation | $ 0 | $ 193,750 |
Performance Units Member [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Incentive Plan Compensation Expense | 28,000 | 27,000 |
Unrecognized Compensation Cost | $ 11,000 | $ 39,000 |
Remaining Weighted Average Vesting Period | 11 months 10 days | 1 year 6 months 12 days |
Sharebased Compensation Arrangement By Sharebased Payment Award Equity Instruments Other Than Options, Aggregate Intrinsic Value Nonvested | $ 107,000 | $ 183,000 |
Fully Vested Share Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Cash Bonus | 500,000 | |
Stock Issued During Period Value Share Based Compensation | $ 200,000 |
STOCK INCENTIVE PLAN - Incent62
STOCK INCENTIVE PLAN - Incentive Share Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Incentive Share Activity, Shares | ||
Nonvested - Beginning Balance | 70,000 | |
Nonvested - Ending Balance | 70,000 | |
Performance Units Member [Member] | ||
Incentive Share Activity, Shares | ||
Nonvested - Beginning Balance | 70,000 | 77,500 |
Granted | 0 | 0 |
Forfeited | 0 | (7,500) |
Vested | (29,000) | 0 |
Nonvested - Ending Balance | 41,000 | 70,000 |
Incentive Share Activity Weighted Average Grant Date Fair Value | ||
Nonvested - Beginning Balance | $ 1.23 | $ 1.22 |
Granted | 0 | 0 |
Forfeited | 0 | 1.15 |
Vested | 1.78 | 0 |
Nonvested - Ending Balance | $ 0.84 | $ 1.23 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | ||
Income Tax Expense Benefit | $ 19,378,150 | $ 1,141,718 |
Tax Reform Act Effect | 25,852,000 | 0 |
Bimini Capital Management [Member] | Federal [Member] | ||
Income Taxes [Line Items] | ||
Operating Loss Carryforwards | 19,100,000 | 19,300,000 |
DeferredTaxAssetsCapitalLossCarryforwards | $ 300,000 | 300,000 |
Operating Loss Carryforwards, Expiration Dates | Dec. 31, 2028 | |
Capital Loss Carryover Expiration | Dec. 31, 2019 | |
Bimini Capital Management [Member] | Florida [Member] | ||
Income Taxes [Line Items] | ||
Operating Loss Carryforwards | $ 18,500,000 | 18,600,000 |
Operating Loss Carryforwards, Expiration Dates | Dec. 31, 2028 | |
Royal Palm Capital [Member] | Federal [Member] | ||
Income Taxes [Line Items] | ||
Operating Loss Carryforwards | $ 253,500,000 | 257,000,000 |
DeferredTaxAssetsCapitalLossCarryforwards | $ 100,000 | 0 |
Operating Loss Carryforwards, Expiration Dates | Dec. 31, 2025 | |
Capital Loss Carryover Expiration | Dec. 31, 2022 | |
Royal Palm Capital [Member] | Florida [Member] | ||
Income Taxes [Line Items] | ||
Operating Loss Carryforwards | $ 26,000,000 | 29,500,000 |
Bimini Advisors Holdings [Member] | Federal [Member] | ||
Income Taxes [Line Items] | ||
Infinite Life Intangible | 3,200,000 | 3,200,000 |
Deferred Tax Asset Infinite Life Intangible | $ 800,000 | $ 1,300,000 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Provision (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Current | $ 70,000 | $ 143,000 |
Deferred | 19,308,000 | 999,000 |
Income tax provision | $ 19,378,150 | $ 1,141,718 |
INCOME TAXES - Income Tax Recon
INCOME TAXES - Income Tax Reconciliation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Feseral tax based on statutory rate applicable for each year | $ 984,000 | $ 1,539,000 |
State income tax | 157,000 | 245,000 |
Reduction of deferred tax asset due to enacted decrease in future tax rates | 25,852,000 | 0 |
Reduction of deferred tax valuation allowance | (7,628,000) | (780,000) |
Other | 13,000 | 138,000 |
Income tax provision | $ 19,378,150 | $ 1,141,718 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 59,691,000 | $ 96,500,000 |
Orchid Island Capital, Inc. common stock | 2,349,000 | 3,291,000 |
MBS | 1,038,000 | 1,425,000 |
Management agreement | 813,000 | 1,267,000 |
Tax hedges | 49,000 | 366,000 |
Accrued expenses | 148,000 | 330,000 |
Other | 661,000 | 697,000 |
Gross | 64,749,000 | 103,876,000 |
Valuation Allowance | 20,224,000 | 40,043,000 |
Net deferred tax assets | $ 44,524,584 | $ 63,833,063 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | 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 | $ (16,441,000) | $ 3,378,000 |
Net Income (Loss) Available to Common Stockholders, Diluted | $ (16,441,000) | $ 3,378,000 |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | ||
Common Shares Outstanding | 12,661,000 | 12,632,000 |
Unvested Dividend Eligible Shares Outstanding at the Balance Sheet Date | 0 | 70,000 |
Effect of Weighting | (28,000) | (4,000) |
Weighted Average Shares - Basic and Diluted | 12,633,216 | 12,698,122 |
Income (Loss) Per Share - Basic | $ (1.3) | $ 0.27 |
Income (Loss) Pe Share - Diluted | $ (1.3) | $ 0.27 |
Class B Common Stock [Member] | ||
Net Income (Loss) Available to Common Stockholders, Diluted [Abstract] | ||
Net Income (Loss) Available to Common Stockholders, Basic | $ (42,000) | $ 8,000 |
Net Income (Loss) Available to Common Stockholders, Diluted | $ (42,000) | $ 8,000 |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | ||
Common Shares Outstanding | 32,000 | 32,000 |
Effect of Weighting | 0 | 0 |
Weighted Average Shares - Basic and Diluted | 31,938 | 31,938 |
Income (Loss) Per Share - Basic | $ (1.3) | $ 0.27 |
Income (Loss) Pe Share - Diluted | $ (1.3) | $ 0.27 |
FAIR VALUE - Assets and Liabili
FAIR VALUE - Assets and Liabilities Recorded at Fair Value on Recurring Basis (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities | $ 209,692,132 | $ 130,301,989 |
Orchid Island Capital, Inc. common stock, at fair value | 14,105,934 | 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 | 209,692,000 | 130,302,000 |
Retained Interests | 653,000 | 1,114,000 |
Orchid Island Capital, Inc. common stock, at fair value | 14,106,000 | 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 |
Retained Interests | 0 | 0 |
Orchid Island Capital, Inc. common stock, at fair value | 14,106,000 | 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 | 209,692,000 | 130,302,000 |
Retained Interests | 0 | 0 |
Orchid Island Capital, Inc. common stock, at fair value | 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 |
Retained Interests | 653,000 | 1,114,000 |
Orchid Island Capital, Inc. common stock, at fair value | $ 0 | $ 0 |
FAIR VALUE - Changes in Level 3
FAIR VALUE - Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Details) - Retained Interest [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 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 | 645,000 | 2,425,000 |
Collections | (1,106,000) | (2,435,000) |
Ending Balance | $ 653,000 | $ 1,114,000 |
FAIR VALUE - Quantitative Infor
FAIR VALUE - Quantitative Information About Level 3 Fair Value Measurements - Prepayment Assumptions (Details) - Retained Interest [Member] | 12 Months Ended |
Dec. 31, 2017 | |
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% |
FAIR VALUE - Quantitative Inf71
FAIR VALUE - Quantitative Information About Level 3 Fair Value Measurements - Default Assumptions (Details) - Retained Interest [Member] | 12 Months Ended |
Dec. 31, 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 | 22.70% |
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 | 22.70% |
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 | 3.30% |
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% |
FAIR VALUE - Quantitative Inf72
FAIR VALUE - Quantitative Information About Level 3 Fair Value Measurements - Cash Flow Recognition (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Maximum [Member] | Nominal Cashflows [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Remaining Life Range | 14.5 |
Fair Value Inputs Discount Rate | 27.50% |
Maximum [Member] | Discounted Cashflows [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Remaining Life Range | 3.3 |
Fair Value Inputs Discount Rate | 27.50% |
Minimum [Member] | Nominal Cashflows [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Remaining Life Range | 11.5 |
Fair Value Inputs Discount Rate | 27.50% |
Minimum [Member] | Discounted Cashflows [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Remaining Life Range | 1 |
Fair Value Inputs Discount Rate | 27.50% |
Weighted Average [Member] | Nominal Cashflows [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Remaining Life Range | 12.1 |
Fair Value Inputs Discount Rate | 27.50% |
Weighted Average [Member] | Discounted Cashflows [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Remaining Life Range | 2.4 |
Fair Value Inputs Discount Rate | 27.50% |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
SegmentReportingInformationLineItems | ||
Advisory services, external customers | $ 7,431,359 | $ 5,488,691 |
Advisory services, other operating segments | 0 | 0 |
Interest and dividend income | 8,573,000 | 6,578,000 |
Interest and Debt Expense | 3,033,000 | 1,856,000 |
Net revenues | 12,971,000 | 10,211,000 |
Other Income | (3,672,000) | 60,000 |
Operating Expenses | 6,403,000 | 5,743,000 |
Intercompany Expenses | 0 | 0 |
Net (loss) income before income tax provision (benefit) | 2,895,530 | 4,527,722 |
Assets | 284,588,797 | 222,870,404 |
Asset Management Segment [Member] | ||
SegmentReportingInformationLineItems | ||
Advisory services, external customers | 7,431,000 | 5,489,000 |
Advisory services, other operating segments | 207,000 | 94,000 |
Interest and dividend income | 0 | 0 |
Interest and Debt Expense | 0 | 0 |
Net revenues | 7,638,000 | 5,583,000 |
Other Income | 0 | 0 |
Operating Expenses | 3,016,000 | 2,640,000 |
Intercompany Expenses | 0 | 0 |
Net (loss) income before income tax provision (benefit) | 4,622,000 | 2,943,000 |
Assets | 1,632,000 | 1,856,000 |
Investment Portfolio Segment [Member] | ||
SegmentReportingInformationLineItems | ||
Advisory services, external customers | 0 | 0 |
Advisory services, other operating segments | 0 | 0 |
Interest and dividend income | 8,572,000 | 6,576,000 |
Interest and Debt Expense | 1,796,000 | 747,000 |
Net revenues | 6,776,000 | 5,829,000 |
Other Income | (4,306,000) | (2,675,000) |
Operating Expenses | 3,387,000 | 3,103,000 |
Intercompany Expenses | 207,000 | 94,000 |
Net (loss) income before income tax provision (benefit) | (1,124,000) | (43,000) |
Assets | 267,429,000 | 199,883,000 |
CorporateMember | ||
SegmentReportingInformationLineItems | ||
Advisory services, external customers | 0 | 0 |
Advisory services, other operating segments | 0 | 0 |
Interest and dividend income | 1,000 | 2,000 |
Interest and Debt Expense | 1,237,000 | 1,109,000 |
Net revenues | (1,236,000) | (1,107,000) |
Other Income | 634,000 | 2,735,000 |
Operating Expenses | 0 | 0 |
Intercompany Expenses | 0 | 0 |
Net (loss) income before income tax provision (benefit) | (602,000) | 1,628,000 |
Assets | 15,528,000 | 21,131,000 |
Eliminations | ||
SegmentReportingInformationLineItems | ||
Advisory services, external customers | 0 | 0 |
Advisory services, other operating segments | (207,000) | (94,000) |
Interest and dividend income | 0 | 0 |
Interest and Debt Expense | 0 | 0 |
Net revenues | (207,000) | (94,000) |
Other Income | 0 | 0 |
Operating Expenses | 0 | 0 |
Intercompany Expenses | (207,000) | (94,000) |
Net (loss) income before income tax provision (benefit) | $ 0 | $ 0 |
SEGMENT INFORMATION - Revenue F
SEGMENT INFORMATION - Revenue From Major Customer (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
EntityWideRevenueMajorCustomerLineItems | ||
Revenue | $ 16,004,400 | $ 12,067,432 |
Total Revenue [Member] | Orchid Island Capital [Member] | ||
EntityWideRevenueMajorCustomerLineItems | ||
Revenue | $ 7,400,000 | $ 5,500,000 |
ConcentrationRiskPercentage1 | 46.00% | 45.00% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | ||
Investment Income, Dividend | $ 2,518,660 | $ 2,343,660 |
Orchid Island Capital [Member] | ||
Related Party Transaction [Line Items] | ||
Investment Owned Balance Shares | 1,520,036 | 1,395,036 |
Equity Method Investment Ownership Percentage | 2.90% | 4.20% |
Investment Income, Dividend | $ 2,500,000 | $ 2,300,000 |