DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 15, 2021 | Jun. 30, 2020 | |
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Bimini Capital Management, Inc. | ||
Entity Central Index Key | 0001275477 | ||
Entity Current Reporting Status | Yes | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4,800,000 | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
EntityInteractiveDataCurrent | Yes | ||
Class A Common Stock [Member] | |||
Entity Common Stock Shares Outstanding | 11,608,555 | ||
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, 2020 | Dec. 31, 2019 |
Mortgage Backed Securities At Fair Value [Abstract] | ||
Pledged to counterparties | $ 65,153,274 | $ 217,793,209 |
Unpledged | 24,957 | 47,744 |
Total mortgage-backed securities | 65,178,231 | 217,840,953 |
Cash and cash equivalents | 7,558,342 | 8,070,067 |
Restricted cash | 3,353,015 | 4,315,050 |
Orchid Island Capital, Inc. common stock, at fair value | 13,547,764 | 8,892,211 |
Accrued interest receivable | 202,192 | 750,875 |
Property and equipment, net | 2,093,440 | 2,162,975 |
Real Estate Held-for-sale | 0 | 450,000 |
Deferred tax assets, net | 33,288,536 | 34,668,467 |
Due From Affiliate | 632,471 | 622,120 |
Other assets | 1,466,647 | 3,096,161 |
Total Assets | 128,700,569 | 279,488,948 |
Liabilities | ||
Outstanding repurchase obligations | 65,071,113 | 209,954,000 |
Long-term Debt, Gross | 27,612,781 | 27,481,121 |
Accrued interest payable | 107,417 | 645,302 |
Other Liabilities | 1,421,409 | 1,431,534 |
Total Liabilities | 94,212,720 | 239,511,957 |
Stockholders' Equity | ||
Preferred stock | 0 | 0 |
Common stock | 11,673 | 11,673 |
Additional paid in capital | 332,642,758 | 332,642,758 |
Accumulated deficit | (298,166,582) | (292,677,440) |
Stockholders Equity | 34,487,849 | 39,976,991 |
Total Liabilities and Stockholders' Equity | 128,700,569 | 279,488,948 |
Class A Common Stock [Member] | ||
Stockholders' Equity | ||
Common stock | 11,609 | 11,609 |
Class B Common Stock [Member] | ||
Stockholders' Equity | ||
Common stock | 32 | 32 |
Class C Common Stock [Member] | ||
Stockholders' Equity | ||
Common stock | $ 32 | $ 32 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
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 | $ 11,673 | $ 11,673 |
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 | 11,608,555 | 11,608,555 |
Common Stock Shares Outstanding | 11,608,555 | 11,608,555 |
Common Stock Value Outstanding | $ 11,609 | $ 11,609 |
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, 2020 | Dec. 31, 2019 | |
Revenues | ||
Advisory services | $ 6,795,072 | $ 6,907,910 |
Interest income | 3,764,003 | 7,868,940 |
Orchid Island Capital, Inc. dividends | 1,752,730 | 1,459,235 |
Total revenues | 12,311,805 | 16,236,085 |
Interest expense on repurchase agreements | 1,073,528 | 4,602,837 |
Interest Expense, Long-term Debt | 1,572,038 | 1,150,613 |
Net revenues | 10,087,664 | 10,061,210 |
Other income: | ||
Unrealized (losses) gains on mortgage-backed securities | 111,615 | 6,338,000 |
Realized gains on mortgage-backed securities | (5,744,589) | 23,078 |
Unrealized losses on Orchid Island Capital, Inc. common stock | 583,961 | (820,819) |
(Losses) gains on derivative instruments | (5,292,521) | (5,817,825) |
Gains on retained interests in securitizations | 58,735 | 314,984 |
Impairment of property and equipment | 0 | 673,438 |
Other expense, net | 3,478 | 32,884 |
Total other income | (10,279,321) | (603,136) |
Expenses | ||
Compensation and related benefits | 4,235,487 | 4,115,743 |
Directors fees and liability insurance | 690,713 | 653,825 |
Audit, legal and other professional fees | 576,662 | 489,243 |
Administrative and other expenses | 1,164,039 | 1,180,898 |
Total expenses | 6,666,901 | 6,439,709 |
Net (loss) income before income tax provision (benefit) | (6,858,558) | 3,018,365 |
Income tax provision (benefit) | (1,369,416) | (10,281,612) |
Net (loss) income | $ (5,489,142) | $ 13,299,977 |
Class A Common Stock [Member] | ||
Basic and Diluted Net (Loss) Income Per Share of: | ||
Basic | $ (0.47) | $ 1.09 |
Diluted | $ (0.47) | $ 1.09 |
Weighted Average Shares Outstanding | ||
Weighted Average Shares - Basic and Diluted | 11,608,555 | 12,178,160 |
Class B Common Stock [Member] | ||
Basic and Diluted Net (Loss) Income Per Share of: | ||
Basic | $ (0.47) | $ 1.09 |
Diluted | $ (0.47) | $ 1.09 |
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] | Common Stock [Member] | Additional Paid In Capital [Member] | Retained Earnings [Member] |
Beginning Balances at Dec. 31, 2018 | $ 28,954,621 | $ 12,773 | $ 334,919,265 | $ (305,977,417) | |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 13,299,977 | 0 | 0 | 13,299,977 | |
Stock Repurchased And Retired During Period Value | (2,277,607) | (1,100) | (2,276,507) | 0 | |
Ending Balances at Dec. 31, 2019 | 39,976,991 | $ 11,673 | 332,642,758 | (292,677,440) | |
Common Stock Shares Outstanding, Beginning Balance at Dec. 31, 2018 | 12,773,145 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock Repurchased and Retired During Period, Shares | (1,100,714) | ||||
Common Stock Shares Outstanding, Ending Balance at Dec. 31, 2019 | 11,608,555 | 11,672,431 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | (5,489,142) | $ 0 | 0 | (5,489,142) | |
Ending Balances at Dec. 31, 2020 | $ 34,487,849 | $ 11,673 | $ 332,642,758 | $ (298,166,582) | |
Common Stock Shares Outstanding, Ending Balance at Dec. 31, 2020 | 11,608,555 | 11,672,431 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net (loss) income | $ (5,489,142) | $ 13,299,977 |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | ||
Depreciation | 69,536 | 73,057 |
Deferred income tax provision (benefit) | (1,379,931) | (10,085,715) |
Losses (gains) on mortgage-backed securities | 5,632,974 | (6,361,078) |
Gains on retained interests in securitizations | (58,735) | (314,984) |
Gains From Disposition Of Property Held For Sale | (11,591) | 0 |
Impairment of Real Estate | 0 | 673,438 |
Realized and unrealized losses on TBA securities | (1,441,406) | (2,196,582) |
Unrealized losses on Orchid Island Capital, Inc. common stock | 583,961 | (820,819) |
Changes in operating assets and liabilities | ||
Accrued interest receivable | 548,683 | 29,660 |
Other assets | 1,629,514 | (71,105) |
Accrued interest payable | (537,885) | (32,960) |
Other liabilities | 48,469 | (255,913) |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 1,298,986 | 3,742 |
From mortgage-backed securities investments | ||
Purchases | (43,129,835) | (65,780,690) |
Sales | 176,249,711 | 43,975,274 |
Principal repayments | 13,909,872 | 22,749,733 |
Proceeds From Collection Of Retained Interest In Securitized Receivables | 58,735 | 314,984 |
Net setlement of forward settling TBA contracts | 1,500,000 | 3,075,488 |
Purchases of Orchid Island Capital, Inc. common stock | 4,071,592 | 0 |
ProceedsFromSaleOfPropertyHeldForSale | 461,590 | 0 |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | 141,978,481 | (1,816,187) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from repurchase agreements | 538,558,549 | 1,200,646,000 |
Principal payments on repurchase agreements | (683,441,436) | (1,191,088,000) |
Proceeds from Issuance of Long-term Debt | 152,165 | 680,000 |
Payments For Repurchase Of Common Stock | 0 | 2,277,607 |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (144,751,227) | 7,957,074 |
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (1,473,760) | 6,144,629 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 12,385,117 | 6,240,488 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | 10,911,357 | 12,385,117 |
Cash paid during the period for: | ||
Interest | 2,762,026 | 6,207,835 |
Income Taxes | (1,581,828) | (46,700) |
TBA Contracts [Member] | ||
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | ||
Realized and unrealized losses on TBA securities | (1,441,406) | (2,196,582) |
From mortgage-backed securities investments | ||
Net setlement of forward settling TBA contracts | $ (1,500,000) | $ (3,075,488) |
ORGANIZATION AND SIGNIFICANT AC
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
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 operates in two business segments through its principal wholly-owned operating subsidiary , Royal Palm C apital, LLC , which includes its wholly-owned subsidiary, Bimini Advisors Holdings, LLC. Bimini Advisors Holdings, LLC and its wholly-owned subsidiary, Bimini Advisors, LLC ( a n investment advisor registered with the Securities and Exchange Commission), are collectively referred to as "Bimini Advisors." Bimini Advisors manages a residential mortgage-backed securities (“ MBS ”) portfolio for Orchid Island Capital, Inc. ("Orchid") and receives fees for providing these services. Bimini Advisors also manages the MBS portfolio of Royal Palm Capital, LLC. 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. Variable Interest Entities (VIEs) A variable interest entity ("VIE") is consolidated by an enterprise if it is deemed the primary beneficiary of the VIE. Bimini Capital has a common share investment in a trust used in c onnection with the issuance of Bimini Capital's junior subordinated notes. See Note 10 for a description of the accounting used for this VIE. We obtain interests in VIEs through our investments in mortgage-backed securities. Our interests in these VIEs are passive in nature and are not expected to result in us obtaining a controlling financial interest in these VIEs in the future. As a result, we do not consolidate these VIEs and we account for our interests in these VIEs as mortgage-backed securities. See Note 3 for additional information regarding our investments in mortgage-backed securities. Our maximum exposure to loss for these VIEs is the carrying value of the mortgage-backed securities. Basis of Presentation The accompanying consolidated financial statements are prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States (“GAAP”). In the opinion of management, all adjustments considered necessary for a fair presentation of the Company's consolidated financial position, results of operations and cash flows have been included and are of a normal and recurring nature. COVID-19 Impact Beginning in mid-March 2020, the global pandemic associated with the novel coronavirus COVID-19 (“COVID-19”) and related economic conditions began to impact our financial position and results of operations. As a result of the economic, health and market turmoil brought about by COVID-19, the Agency MBS m arket experienced severe dislocations. This resulted in falling prices of our assets and increased margin calls from our repurchase agreement lenders. Further, as interest rates declined, we faced additional margin calls related to our various hedge positi ons. In order to maintain our leverage ratio at prudent levels, maintain sufficient cash and liquidity, reduce risk and satisfy margin calls, we sold assets at levels significantly below their carrying values and closed several hedge positions. During this period, we sold approximately $ 171.2 million of MBS during the three months ended March 31, 2020, realizing losses of approximately $ 5.8 million. The Agency MBS market largely stabilized after the Federal Reserve announced on March 23, 2020 that it woul d purchase Agency MBS and U.S. Treasuries in the amounts needed to support smooth market functioning. As of December 31, 2020 , we had timely satisfied all margin calls. Although the Company cannot estimate the length or gravity of the impact of the COVID-19 outbreak at this time, if the pandemic continues, it may continue to have adverse effects on the Company’s results of future operations, financial position, and liquidity in fiscal year 2021. In addition, President Trump signed into law the Coron avirus Aid, Relief, and Economic Security (CARES) Act, which has provided billions of dollars of relief to individuals, businesses, state and local governments, and the health care system suffering the impact of the pandemic, including mortgage loan forbea rance and modification programs to qualifying borrowers who may have difficulty making their loan payments. On April 13, 2020, the Company received $152,000 through the Paycheck Protection Program of the CARES Act in the form of a low interest rate loan. The application for these funds requires the Company to, in good faith, certify that the current economic uncertainty made the loan request necessary to support the ongoing operations of the Company. This certification further requires the Company to take into account our current business activity and our ability to access other sources of liquidity sufficient to support ongoing operations in a manner that is not significantly detrimental to the business. The receipt of these funds, and the forgiveness of t he loan attendant to these funds, is dependent on the Company having initially qualified for the loan and qualifying for the forgiveness of such loan based on our future adherence to the forgiveness criteria. The CARES Act also makes technical corrections to, or modifies on a temporary basis, certain provisions of the U.S. Income Tax Code. Significant income tax impacts of the CARES Act include the ability to carry back a net operating loss for 5 years and an increase in the interest expense disallowance l imitations from 30% to 50% of adjusted taxable income. Those changes did not significantly impact the consolidated financial statements or the Company’s 2019 income tax return. The Company has evaluated the other provisions of the CARES Act and does not believe it will have a material effect on the Company’s business, results of operations and financial condition. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ fro m those estimates. Significant estimates affecting the accompanying consolidated financial statements include determining the fair values of MBS, investment in Orchid common shares, and derivatives, determining the amounts of asset valuation allowances , t he impairment for the real property held for sale, and the computation of the income tax provision or benefit and the deferred tax asset allowances recorded for each accounting period . Management believes the estimates and assumptions underlying the financ ial statements are reasonable based on the information available as of December 31, 2020 , however uncertainty over the ultimate impact that COVID-19 will have on the global economy generally, and on our business in particular, makes any estimates and assumptions as of December 31 , 2020 inherently less certain than they would be absent the cur rent and potential impacts of COVID-19. 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 dec iding how to allocate resources and in assessing performance. The accounting policies of the operating segments are the same as the Company’s accounting policies described in this note with the exception that inter-segment revenues and expenses are includ ed in the presentation of segment results. For further information see Note 16 . 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, 2020 and 2019 . 2020 2019 Cash and cash equivalents $ 7,558,342 $ 8,070,067 Restricted cash 3,353,015 4,315,050 Total cash, cash equivalents and restricted cash $ 10,911,357 $ 12,385,117 The Company maintains cash balances at several banks and excess margin with an exchange clearing member. A t times, 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. Res tricted cash balances are uninsured, but are held in separate accounts that are segregated from the general funds of the counterparty. The Company limits uninsured balances to only large, well-known banks and exchange clearing members and believes that it is not exposed to significant credit risk on cash and cash 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 man agement agreement, Orchid is obligated to pay Bimini Advisors a monthly management fee and a pro rata portion of certain overhead costs and to reimburse the Company for any direct expenses incurred on its behalf. Revenue s from management fees are recognize d over the period of time in which the service is performed. Mortgage-Backed Securities The Company invests primarily in pass-through mortgage backed certificates issued by Freddie Mac, Fannie Mae or Ginnie Mae (“MBS”) , collateralized mortgage obligations (“CMOs”) , interest-only (“IO”) securities and inverse interest-only (“IIO”) securities representing interest in or obligations backed by pools of mortgage-backed loans. We refer to MBS and CMOs as PT MBS. We refer to IO and IIO securities as st ructured MBS. 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 operations for a particular reporting period and is consistent with the underlying economics and how the portfolio is managed. The Company records MBS transactions on the trade date. Security purchase s 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 recei vable recorded. Fair value is defined as the price that would be received to sell the asset or paid to transfer the liability in an orderly transaction between market participants at the measurement date. The fair value measurement assumes that the transaction to sell the asset or transfer the liability either occurs in the principal market for the asset or liability, or in the absence of a principal market, occurs in the most advantageous market for the asset or liability. Estimated fair values for MBS are based on independent pricing sources and/or third - party broker quotes, when available. Income on PT MBS is based on the stated interest rate of the security. Premiums or discounts present at the date of purchase are not amortized. Premium lost and di scount accretion resulting from monthly principal repayments are reflected in unrealized gains and 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. Th e 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 for future repor ting period s based on the new estimate of prepayments and the contractual terms of the security. For IIO securities, effective yield and income recognition calculations also take into account the index value applicable to the security. Changes in fair va lue 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 mortga ge backed securities thus captures the net effect of changes in the fair market value of securities caused by market developments and any premium or discount lost as a result of principal repayments during the period. Orchid Island Capital, Inc. Common Stock The Company accounts for its investment in Orchid common shares at fair value. The change in the fair value and dividends received on this investment are reflected in the consolidated statements of operations. 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. Retained Interests in Securitizations The Company holds r etained interests in the subordinated tranches of securities created in securitization transactions . These retained interests currently have a recorded fair value of zero, as the prospect of future cash flows being received is uncertain . Any cash received from the retained interests is reflected in the consolidated statement s of operations . Derivative Fi nancial Instruments The Company uses derivative instruments to manage interest rate risk, facilitate asset/liability strategies and manage other exposures, and it may continue to do so in the future. The principal instruments that the Company has used to date are Treasury Note (“ T-Note ”) and Eurodollar futures contracts , and “to-be-announced” (“TBA”) securities, but it may enter into other derivatives in the future. The Company accounts for TBA securities as derivative instruments. Gains and losses associ ated with TBA securities transactions are reported in gain (loss) on derivative instruments in the accompanying consolidated statements of operations. Derivative instruments are carried at fair value, and changes in fair value are recorded in the consolidated statements of operations for each period. The Company’s derivative financial instruments are not designated as hedge accounting relationships, but rather are used as economic hedges of its portfolio assets and liabilities . Holding derivatives creates exposure to credit risk related to the potential for failure by counterparties to honor their commitments. In the event of default by a counterparty, the Company may have difficulty recovering its collateral and may not receive payments provided for under the terms of the agreement. The Company’s derivative agreements require it to post or receive collateral to mitigate such risk . In addition , the Com pany uses only registered central clearing exchanges and well-established commercial banks as counterparties , monitors positions with individual counterparties and adjusts posted collateral as required . Financial Instruments T he fair value of financial instruments for which it is practicable to estimate that value is disclosed either in the body of the consolidated financial statements or in the accompanying notes. MBS, Orchid common stock and derivative assets and liabilities are accounted for at fair value in the consolidated balance sheets. The methods and assumptions used to estimate fair value for these instruments are presented in Note 15 of the consolidated financial statements. The estimated fair value of cash and ca sh equivalents, restricted cash, accrued interest receivable, other assets, repurchase agreements , accrued interest payable and other liabilities generally approximates their carrying value due to the short-term nature of these financial instruments. It is impractical to estimate the fair value of the Company’s junior subordinated notes. Currently, there is a limited market for these types of instruments and the Company is unable to ascertain what interest rates would be available to the Company for s imilar financial instruments. Further i nformation regarding these instruments is presented in Note 10 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 depr eciated using the straight-line method over the estimated useful lives of the assets . Depreciation is included in administrative and other expenses in the consolidated statement of operations . Repurchase Agreements The Company finances the acquisition of the majority of its PT MBS through the use of repurchase agreements under master repurchase agreements. R epurchase agreements are accounted for as collateralized financing transactions, which are carried at their con tractual amounts, including accrued interest, as specified in the respective agreements. Earnings Per Share 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 using the treasury stock or two-class method, as applicable for common stock equivalents. However, the common stock equivalents are not included in computing diluted EPS if the result is anti-dilutive. 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 , if any, on each share of Class A Common Stock. Accordingly, shares of the Class B Common Stock are included in the computation of basic EPS using the two-class method and, consequently, are presented separately from Class A Common Stock. The shares of Class C Common Stock are not included in the basic EPS computation as these shares do not have pa rticipation rights. The outstanding shares of Class B and Class C Common Stock are not included in the computation of diluted EPS for the Class A Common Stock as the conditions for conversion into shares of Class A Common Stock were not met. Income Taxes 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 n et 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 7 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. For tax filing purposes, Bimini Capital and its includable subsidiaries, and Royal Palm and its includable subsidiaries, file as separate tax paying entit ies. The Company assesses the likelihood, based on their technical merit, that uncertain 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 positi ons is adjusted when new information is available, or when an event occurs that requires a change. The Company recognizes tax positions in the consolidated financial statements only when it is more likely than not that the position will be sustained upon examination by the relevant taxing authority based on the technical merits of the position. A position that meets this standard is measured at the largest amount of benefit that will more likely than not be realized upon settlement. The difference between the benefit re cognized and the tax benefit claimed on a tax return is referred to as an unrecognized tax benefit and is recorded as a liability in the consolidated balance sheets . The C ompany records income tax-related interest and penalties, if applicable, within the i ncome tax provision. Recent Accounting Pronouncements On January 1, 2020, we adopted Accounting Standards Update (“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 to be measured at amortized cost and certain other instruments to be measured usi ng an expected credit loss model (referred to as the current expected credit loss model). The Company’s adoption of this ASU did not have a material impact on its consolidated financial statements as its financial assets were already measured at fair value through earnings. In March 2020, the FASB issued ASU 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 provides optional expedients and exceptions to GAAP requirements f or modifications on debt instruments, leases, derivatives, and other contracts, related to the expected market transition from the London Interbank Offered Rate (“LIBOR,”), and certain other floating rate benchmark indices, or collectively, IBORs, to alter native reference rates. ASU 2020-04 generally considers contract modifications related to reference rate reform to be an event that does not require contract remeasurement at the modification date nor a reassessment of a previous accounting determination. The guidance in ASU 2020-04 is optional and may be elected over time, through December 31, 2022, as reference rate reform activities occur. The Company does not believe the adoption of this ASU will have a material impact on its consolidated financial stat ements . In January 2021, the FASB issued ASU 2021-01 “Reference Rate Reform (Topic 848). ASU 2021-01 expands the scope of ASC 848 to include all affected derivatives and give market participants the ability to apply certain aspects of the contract modification and hedge accounting expedients to derivative contracts affected by the discounting transition. In addition, ASU 2021-01 adds implementation guidance to permit a company to apply certain optional expedients to modifications of interest rate in dexes used for margining, discounting or contract price alignment of certain derivatives as a result of reference rate reform initiatives and extends optional expedients to account for a derivative contract modified as a continuation of the existing contra ct and to continue hedge accounting when certain critical terms of a hedging relationship change to modifications made as part of the discounting transition. The guidance in ASU 2021-01 is effective immediately and available generally through December 31, 2022, as reference rate reform activities occur. 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, 2020 | |
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 oversight of Orchid's board of directors and has only such functions and authority as delegated to it. Bimini Advisors receives a monthly management fee in the amount of: One-twelfth of 1.5% of the first $250 million of the Orchid’s month-end equity, as defined in the management agreement, One-twelfth of 1.25% of the Orchid’s month-end 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 month-end equity that is greater than $500 mil lion. Orchid is obligated to reimburse Bimini Advisors for any direct expenses incurred on its behalf and to pay to Bimini Advisors an amount equal to Orchid's pro rata portion of certain overhead costs set forth in the management agreement. The managemen t agreement has been renewed through February 20, 2022 and provides for automatic one-year extension options thereafter. Should Orchid terminate the management agreement without cause, it will be obligated to pay Bimini Advisors a termination fee equal to three times the average annual management fee, as defined in the management agreement, before or on the last day of the automatic renewal term. The following table summarizes the advisory services revenue from Orchid for the years ended December 31, 2020 and 2019 . (in thousands) 2020 2019 Management fee $ 5,281 $ 5,528 Allocated overhead 1,514 1,380 Total $ 6,795 $ 6,908 At December 31, 2020 and 2019 , the net amount due from Orchid was approximately $0.6 million and $0.6 million, respectively. These amounts are included in “other assets” in the consolidated balance sheets. |
MORTGAGE-BACKED SECURITIES
MORTGAGE-BACKED SECURITIES | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019 : (in thousands) 2020 2019 Fixed-rate Mortgages $ 64,902 $ 216,231 Interest-Only Securities 251 1,024 Inverse Interest-Only Securities 25 586 Total $ 65,178 $ 217,841 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property And Equipment [Text Block] | NOTE 4 . PROPERTY AND EQUIPMENT, NET The composition of property and equipment at December 31, 2020 and 2019 follows: (in thousands) 2020 2019 Land $ 1,185 $ 1,185 Buildings and improvements 1,827 1,827 Computer equipment and software 181 181 Office furniture and equipment 198 198 Total cost 3,391 3,391 Less accumulated depreciation and amortization 1,298 1,228 Property and equipment, net $ 2,093 $ 2,163 Depreciation of property and equipment totaled approximately $70,000 and $73,000 for the years ended December 31, 2020 and 2019 , respectively. In August 2019, the Company transferred one its real estate properties to held for sale to generate additional cash to be invested in the MBS portfolio. The Company transferred the property at fair value, which resulted in an impairment charge of approximately $0.7 million during the year ended December 31, 2019. In October 2020, the Co mpany completed the sale of this property, receiving proceeds of approximately $0.5 million. The transaction resulted in a gain of approximately $12,000 |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets [Abstract] | |
Other Current Assets [TextBlock] | NOTE 5 . OTHER ASSETS The composition of other assets at December 31, 2020 and 2019 follows: (in thousands) 2020 2019 Investment in Bimini Capital Trust II $ 804 $ 804 Prepaid expenses 278 215 Servicing advances 205 205 Servicing sale receivable, including accrued interest - 159 Refundable income taxes withheld - 1,578 Other 180 135 Total other assets $ 1,467 $ 3,096 Receivables are carried at their estimated collectible amounts. The Company maintains an allowance for credit losses for expected losses, if any. Management considers the following factors when determining the expected losses of specific accounts: past transaction activity, current economic conditions , changes in pa yment terms and reasonable and supportable forecasts . Adjustments to the allowance for credit losses are recorded with a corresponding adjustment included in the consolidated statement of operations. As of December 31, 2020 and 2019 , management determined that no allowance for credit losses was nec essary. Collections on amounts previously written off are included in income as received. |
REPURCHASE AGREEMENTS
REPURCHASE AGREEMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of Repurchase Agreements [Abstract] | |
Repurchase Agreements | NOTE 6 . REPURCHASE AGREEMENTS The Company pledges certain of its RMBS as collateral under repurchase agreements with financial institutions. Interest rates are generally fixed based on prevailing rates corresponding to the terms of the borrowings, and interest is generally paid at the termination of a borrowing. If the fair value of the pledged securities declines, lenders will typically require the Company to post additional collateral or pay down borrowings to re-establish agreed upon collateral requirements, referred to as "margin calls." Similarly, if the fair value of the pledged securities increases, lenders may release collateral back to the Company. As of December 31, 2020 , the Company had met all margin call requirements. As of December 31, 2020 and December 31, 2019 , 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, 2020 Fair value of securities pledged, including accrued interest receivable $ - $ 49,096 $ 8,853 $ 7,405 $ 65,354 Repurchase agreement liabilities associated with these securities $ - $ 49,120 $ 8,649 $ 7,302 $ 65,071 Net weighted average borrowing rate - 0.25% 0.23% 0.30% 0.25% December 31, 2019 Fair value of securities pledged, including accrued interest receivable $ - $ 137,992 $ 80,550 $ - $ 218,542 Repurchase agreement liabilities associated with these securities $ - $ 132,573 $ 77,381 $ - $ 209,954 Net weighted average borrowing rate - 2.02% 1.92% - 1.98% In addition, cash pledged to counterpart ies as collateral for repurchase agreements was approximately $3.4 million and $3.8 million as of December 31, 2020 and 2019 , respectively. 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 receivable, and cash posted by the Company as collateral, if any. At December 31, 2020 and December 31, 2019 , the C ompany had an aggregate amount at risk (the difference between the amount loaned to the Company, including interest payable, and the fair value of securities and cash pledged (if any), including accrued interest on such securities) with all counterparties of approximately $3.6 million and $11.8 million, respectively. The Company did not have an amount at risk with any individual counterparty greater than 10% of the Company’s equity at December 31, 2020 and December 31, 2019 . |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | NOTE 7 . DERIVATIVE FINANCIAL INSTRUMENTS The table below summarizes fair value information about our derivative assets and liabilities as of December 31, 2020 and 2019 . (in thousands) Derivative Instruments and Related Accounts Balance Sheet Location December 31, 2020 December 31, 2019 Liabilities TBA Securities Other liabilities $ - $ 59 Total derivative liabilities, at fair value $ - $ 59 Margin Balances Posted to (from) Counterparties Futures contracts Restricted cash $ 1 $ 537 Total margin balances on derivative contracts $ 1 $ 537 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 and T-note futures positions at December 31, 2020 and December 31, 2019 . ($ in thousands) As of December 31, 2020 Junior Subordinated Debt Funding Hedges Average Weighted Weighted Contract Average Average Notional Entry LIBOR Open Expiration Year Amount Rate Rate Equity (1) 2021 $ 1,000 1.02% 0.18% $ (8) ($ in thousands) As of December 31, 2019 Repurchase Agreement Funding Hedges Average Weighted Weighted Contract Average Average Notional Entry LIBOR Open Expiration Year Amount Rate Rate Equity (1) Eurodollar Futures Contracts (Short Positions) 2020 $ 120,000 2.90% 1.67% $ (1,480) 2021 80,000 2.80% 1.57% (984) Total / Weighted Average $ 200,000 2.86% 1.63% $ (2,464) Treasury Note Futures Contracts (Short Positions) (2) March 2020 5-year T-Note futures $ 20,000 1.96% 2.06% 88 ($ in thousands) As of December 31, 2019 Junior Subordinated Debt Funding Hedges Average Weighted Weighted Contract Average Average Notional Entry LIBOR Open Expiration Year Amount Rate Rate Equity (1) 2020 $ 19,500 1.92% 1.68% $ (46) (1) Open equity represents the cumulative gains (losses) recorded on open futures positions from inception. (2) T-Note futures contracts were valued at a price of $118.61 at December 31, 2019 . The contract value of the short positions w as $23.7 million. The following table summarizes our contracts to purchase and sell TBA securities as of December 31, 2019 . There were no open TBA contracts as of December 31, 2020 . ($ in thousands) Notional Net Amount Cost Market Carrying Long (Short) (1) Basis (2) Value (3) Value (4) December 31, 2019 30-Year TBA Securities: 3.5% $ (50,000) $ (51,414) $ (51,438) $ (24) 4.5% (50,000) (52,621) (52,656) (35) Totals $ (100,000) $ (104,035) $ (104,094) $ (59) (1) Notional amount represents the par value (or principal balance) of the underlying Agency MBS. (2) Cost basis represents the forward price to be paid (received) for the underlying Agency MBS. (3) M arket value represents the current market value of the TBA securities (or of the underlying Agency MBS) as of period-end. (4) Net carrying value represents the difference between the market value and the cost basis of the TBA securities as of period-end and is reported in derivative assets (liabilities), at fair value in our consolidated balance sheets. Losses on Derivative Instruments The table below presents the effect of the Company’s derivative financial instruments on the consolidated statements o f operations for the years ended December 31, 2020 and 2019 . (in thousands) 2020 2019 Eurodollar futures contracts (short positions) Repurchase agreement funding hedges $ (2,328) $ (2,709) Junior subordinated debt funding hedges (517) (390) T-Note futures contracts (short positions) Repurchase agreement funding hedges (1,007) (522) Net TBA securities (1,441) (2,197) Losses on derivative instruments $ (5,293) $ (5,818) 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 recovering its assets pledged as collateral for its derivatives. The cash and cash eq uivalents pledged as collateral for the Company’s derivative instruments are included in restricted cash on the consolidated balance sheets . It is the Company's policy not to offset assets and liabilities associated with open derivative contracts. However, the Chicago Mercantile Exchange (“CME”) rules characterize variation margin transfers as settlement payments, as opposed to adjustments to collateral. As a result, derivative assets and liabilities associated with centrally cleared derivatives for which t he CME serves as the central clearing party are presented as if these derivatives had been settled as of the reporting date . |
PLEDGED ASSETS
PLEDGED ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments Pledged as Collateral [Abstract] | |
Pledged Assets [Text Block] | NOTE 8 . PLEDGED ASSETS Assets Pledged to Counterparties The table below summarizes Bimini’s assets pledged as collateral under its repurchase agreements and derivative agreements as of December 31, 2020 and 2019 . ($ in thousands) December 31, 2020 December 31, 2019 Repurchase Derivative Repurchase Derivative Assets Pledged to Counterparties Agreements Agreements Total Agreements Agreements Total PT MBS - at fair value $ 64,902 $ - $ 64,902 $ 216,231 $ - $ 216,231 Structured MBS - at fair value 251 - 251 1,562 - 1,562 Accrued interest on pledged securities 201 - 201 749 - 749 Cash 3,352 1 3,353 3,778 537 4,315 Total $ 68,706 $ 1 $ 68,707 $ 222,320 $ 537 $ 222,857 Assets Pledged from Counterparties The table below summarizes assets pledged to Bimini from counterparties under repurchase agreements as of December 31, 2020 and 2019 . Cash received as margin is recognized in cash and cash equivalents with a corresponding amount recognized as an increase in repurchase agreements in the consolidated balance sheets . ($ in thousands) Assets Pledged to Bimini December 31, 2020 December 31, 2019 Repurchase agreements $ 80 $ - Total $ 80 $ - |
OFFSETTING ASSETS AND LIABILITI
OFFSETTING ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
Offsetting [Abstract] | |
Offsetting Assets And Liabilities [Text Block] | NOTE 9 . 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, 2020 and 2019 . (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, 2020 Repurchase Agreements $ 65,071 $ - $ 65,071 $ (61,719) $ (3,352) $ - $ 65,071 $ - $ 65,071 $ (61,719) $ (3,352) $ - December 31, 2019 Repurchase Agreements $ 209,954 $ - $ 209,954 $ (206,176) $ (3,778) $ - TBA securities 59 - 59 - - 59 $ 210,013 $ - $ 210,013 $ (206,176) $ (3,778) $ 59 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 . The fair value of the actual collateral received by or posted to the same counterparty typically exceeds the amounts presented. See Note 8 for a discussion of collateral posted for, or received against, repurchase obligations and derivative instruments. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2020 | |
Trust Preferred Securities [Abstract] | |
Trust Preferred Securities | NOTE 10 . LONG-TERM DEBT Long-term debt at December 31, 2020 and 2019 is summarized as follows: (in thousands) 2020 2019 Junior subordinated debt $ 26,804 $ 26,804 Note payable 657 677 Paycheck Protection Plan ("PPP") loan 152 - Total $ 27,613 $ 27,481 Junior Subordinated Debt 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, 2020 and 2019 , 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, 2020 , the interest rate was 3.72% . The BCTII trust preferred securities and Bimini Capital's BCTII Junior Subordinated No tes 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 s enior indebtedness. BCTII is a VIE because the holders of the equity investment at risk do not have substantive 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 a t risk. Since Bimini Capital's common share investment in BCTII is not a variable interest, Bimini Capital is not the primary beneficiary of BCTII. Therefore, Bimini Capital has not consolidated the financial statements of BCTII into its consolidated finan cial statements and this investment is accounted for on the equity method. The accompanying consolidated financial statements present Bimini Capital's BCTII Junior Subordinated Notes issued to BCTII as a liability and Bimini Capital's investment in the co mmon equity securities of BCTII as an asset (included in other assets). For financial statement purposes, Bimini Capital records payments of interest on the Junior Subordinated Notes issued to BCTII as interest expense. Note Payable On October 30, 2019, the Company borrowed $680,000 from a bank. The note is payable in equal monthly principal and interest installments of approximately $4,500 through October 30, 2039. Interest accrues at 4.89% through October 30, 2024. Thereafter, interest accrues based on the weekly average yield to the United States Treasury securities adjusted to a constant maturity of 5 years, plus 3.25%. The note is secured by a mortgage on the Company’s office building. Paycheck Protection Plan Loan On April 13, 2020, the Company received approximately $152,000 through the Paycheck Protection Program (“PPP”) of the CARES Act in the form of a low interest loan. As discussed in Note 1, PPP loans may be forgiven, in whole or in part, if the proceeds are used for payroll and other permitted purposes in accordance with the requirements of the PPP and if certain other requirements are met. These loans carry a fixed rate of 1.00% and a term of two years, if not forgiven, in whole or in part. Payments are d eferred for the first ten months after the completion of the loan forgiveness covered period . The table below presents the future scheduled principal payments on the Company’s long-term debt. (in thousands) Year Ending December 31, Amounts 2021 $ 21 2022 174 2023 24 2024 25 2025 26 Thereafter 27,343 Total $ 27,613 |
CAPITAL STOCK
CAPITAL STOCK | 12 Months Ended |
Dec. 31, 2020 | |
Capital Stock [Abstract] | |
Capital Stock | NOTE 11 . 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. There were no issuances of the Company's Class A Common Stock, Class B Common Stock or Class C Common Stock during the years ended December 31, 2020 and 2019 . Stock Repurchase Plan On March 26, 2018, the Board of Directors of Bimini Capital Management, Inc. (the “Company”) approved a Stock Repurchase Plan (“Repurchase Plan”). Pursuant to Repurchase Plan, the Company may purchase up to 500,000 shares of its Class A Common Stock from time to time, subject to certain limitations imposed by Rule 10b-18 of the Securities Exchange Act of 1934. Share repurchases may be executed through various means, including, without limitation, open market transactions. The Repurchase Plan does not obl igate the Company to purchase any shares. The Repurchase Plan was originally set to expire on November 15, 2018, but it has been extended by the Board of Directors, and it is currently set to expire on November 15, 2021. From the inception of the Repurchase Plan through December 31, 2020 , the Company repurchased a total of 70,404 shares at an aggregate cost of approximately $166,945 , including commissions and fees, for a weighted average price of $2.37 per share. Tender Offer In July 2019, the Company completed a “modified Dutch auction” tender offer and pai d an aggregate of $2.2 million, excluding fees and related expenses, to repurchase 1.1 million shares of Bimini Capital’s Class A common stock at a price of $2.00 per share. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | NOTE 12 . 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 . On April 22, 2020 , the Company received a demand for payment from Citigroup, Inc. in the amount of $ 33.1 million related to the indemnification provisions of various mortgage loan purchase agreements (“MLPA’s”) entered into between Citigroup Global Markets Realty Corp and Royal Palm Capital, LLC (f/k/a Opteum Financial S ervices, LLC) prior to the date Royal Palm’s mortgage origination operations ceased in 2007. The demand is based on Royal Palm’s alleged breaches of certain representations and warranties in the related MLPA’s. The Company believes the demands are withou t merit and intends to defend against the demand vigorously. No provision or accrual has been recorded as of December 31, 2020 related to the Citigroup demand. Management is not aware of any other significant reported or unreported contingencies at December 31 , 202 0 . |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 13 . INCOME TAXES In 2020, the Company recorded an income tax benefit of $1.4 million, including an $0.3 million increase in the deferred tax asset valuation allowance as a result of management’s reassessment of the Company’s ability to utilize net operating losses (“NOLs”) and capital loss carryforwards to offset future taxable income. In 2019, the Company recorded an income tax benefit of $10.3 million, including an $11.1 million decrease in the deferred tax asset valuation allowance as a result of management’s reassessment of the Company’s ability to utilize NOLs and capital loss carryforwards to offset future taxable income. The income tax benefit included in the consolidated statements of operations consists of the following for the years ended December 31, 2020 and 2019 : (in thousands) 2020 2019 Current $ 10 $ (196) Deferred (1,379) (10,086) Income tax benefit, net $ (1,369) $ (10,282) The income tax provision differs from the amount computed by applying the federal income tax statutory rate of 21 percent on income or loss before income tax expense. A reconciliation for the years ended December 31, 2020 and 2019 is presented in the table below. (in thousands) 2020 2019 Federal tax (benefit) provision based on statutory rate applicable for each year $ (1,440) $ 634 State income tax (benefit) provision (302) 164 Increase (decrease) of deferred tax asset valuation allowance 349 (11,109) Other 24 29 Income tax benefit $ (1,369) $ (10,282) Deferred tax assets consisted of the following as of December 31, 2020 and 2019 : (in thousands) 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 58,701 $ 58,250 Orchid Island Capital, Inc. common stock 3,083 3,338 MBS unrealized losses and gains 241 (377) Capital loss carryforwards 2,573 1,743 Management agreement 813 813 Other 1,232 1,148 66,643 64,915 Valuation allowance (31,975) (31,626) Net deferred tax assets $ 34,668 $ 33,289 As of December 31, 2020 and 2019, the Company had federal NOL carryforwards of approximately $268.9 million and $267.1 million, respectively, and Florida NOL carryforwards of $40.8 million and $39.1 million, respectively. The NOL carryforwards can be used to offset future taxable income and will begin to expire in 2026, and the capital loss carryforwards will begin to expire in 2022. In connection with Orchid’s 2013 IPO, Bimini Advisors paid for, and expensed for GAAP purposes, certain offering costs totaling approximately $3.2 million. F or tax purposes, these offering costs created an intangible asset related to the Orchid management agreement with a tax basis of $3.2 million. The deferred tax asset related to the intangible asset at December 31, 2020 and 2019 total ed $0.8 million and $ 0.8 million , respectively . In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of capital loss and NOL carryforwards is dependent upon the generation of future capital gains and taxable income in periods prior to their expiration. The valuation allowance is based on management’s estimated projections of future taxable income, and the projected ability to utilize the NOL carryforwards to offset that projected taxable income before the NOLs expire. With respect to the taxable income projections, management estimates the dividends to be received on its Orchid share holdings as well as the management fees and overhead sharing payments it will receive from Orchid. With respect to the MBS portfolio, management makes estimates of various metrics such as the yields on the assets it plans to acquire, its future funding and interest costs, future prepayment speeds and net interest margin, among others. Estimates are also made for other assets and expenses. Changes in the taxable income projections have a direct impact on the amount of the valuation allowance, and the impact in any reporting period may be significant. Utilization of the NOLs is based on these estimates and the assumptions that management will be able to reinvest retained earnings in order to grow 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’s book value changes, thus changing projected management fees and overhead sharing payments, and/or market conditions, including changes in interest rates, such that estimates with respect to the portfolio metrics warrant revisions. During 2020 and 2019, the Company continues to hold a minimal amount of residual interests in real estate mortgage investment conduits (“REMICs”), some of which generate excess inclusion income (“EII”). These residual interests have no recorded value on the balance sheet. In its 2009 tax return, the Company disclosed a tax filing position related to the EII taxable income and has since included a notice of inconsistent treatment in its tax returns to disclose the position. The tax filing position will continue to be disclosed with respect to the remaining securitizations as long as they are held. The Company has not identified any unrecognized tax benefits that would result in liabilities its consolidated financial statements. The Company has not had any settlements in the current period with taxing authorities and is not currently under audit. Additionally, no tax benefits have been recognized in the financial statements as a result of a lapse of the applicable statute of limitations. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share (EPS) | NOTE 14 . 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. T he 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, 2020 and 2019 . 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, 2020 and 2019 . The table below reconciles the numerators and denominators of the basic and diluted EPS. (in thousands, except per-share information) 2020 2019 Basic and diluted EPS per Class A common share: (Loss) income attributable to Class A common shares: Basic and diluted $ (5,474) $ 13,265 Weighted average common shares: Class A common shares outstanding at the balance sheet date 11,609 11,609 Effect of weighting - 569 Weighted average shares-basic and diluted 11,609 12,178 (Loss) income per Class A common share: Basic and diluted $ (0.47) $ 1.09 (in thousands, except per-share information) 2020 2019 Basic and diluted EPS per Class B common share: (Loss) income attributable to Class B common shares: Basic and diluted $ (15) $ 35 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 $ (0.47) $ 1.09 |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 15 . FAIR VALUE Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price). A fair value measure should reflect the assumptions that market participants would use in pricing the asset or liability, including the assumptions about the risk inherent in a particular valuation technique, the effect of a restriction on the sale or use of an asset and the risk of non-performance. Required disclosures include stratification of balance sheet amounts measured at fair value based on inputs the Company uses to derive fair value measurements. These stratifications are: Level 1 valuations, where the valuation is based on quoted market prices for identical assets or liabilities traded in active markets (which include exchanges and over-the-counter markets with sufficient volume), Level 2 valuations, where the valuation is based on quoted market prices for similar instruments traded in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based va luation techniques for which all significant assumptions are observable in the market, and Level 3 valuations, where the valuation is generated from model-based techniques that use significant assumptions not observable in the market, but observable based on Company-specific data. These unobservable assumptions reflect the Company’s own estimates for assumptions that market participants would use in pricing the asset or liability. Valuation techniques typically include option pricing models, discounted cash flow models and similar techniques, but may also include the use of market prices of assets or liabilities that are not directly comparable to the subject asset or liability. MBS, Orchid common stock, retained interests and TBA securities were all record ed at fair value on a recurring basis during 2020 and 2019 . When determining fair value measurements, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset. When possible, the Company looks to active and observable markets to price identical assets. When identical assets are not traded in active markets, the Company looks to market observable data for similar assets. Fair value me asurements for the retained interests are generated by a model that requires management to make a significant number of assumptions, and this model resulted in a value of zero at both December 31, 2020 and 2019 . The Company's MBS and TBA securities are valu ed using Level 2 valuations, and such valuations currently are determined by the Company based on independent pricing sources and/or third party broker quotes, when available. Because the price estimates may vary, the Company must make certain judgments an d assumptions about the appropriate price to use to calculate the fair values. The Company and the independent pricing sources use various valuation techniques to determine the price of the Company’s securities. These techniques include observing the most recent market for like or identical assets (including security coupon, maturity, yield, and prepayment speeds), spread pricing techniques to determine market credit spreads (option adjusted spread, zero volatility spread, spread to the U.S. T reasury curve or spread to a benchmark such as a TBA security), and model driven approaches (the discounted cash flow method, Black Scholes and SABR models which rely upon observable market rates such as the term structure of interest rates and the volatil ity). The appropriate spread pricing method used is based on market convention. The pricing source determines the spread of recently observed trade activity or observable markets for assets similar to those being priced. The spread is then adjusted based o n variances in certain characteristics between the market observation and the asset being priced. Those characteristics include: type of asset, the expected life of the asset, the stability and predictability of the expected future cash flows of the asset, whether the coupon of the asset is fixed or adjustable, the guarantor of the security if applicable, the coupon, the maturity, the issuer, size of the underlying loans, year in which the underlying loans were originated, loan to value ratio, state in whic h the underlying loans reside, credit score of the underlying borrowers and other variables if appropriate. The fair value of the security is determined by using the adjusted spread. The Company’s futures contracts are Level 1 valuations, as they are exchange-traded instruments and quoted market prices are readily available. Futures contracts are settled daily. The Company’s interest rate swaps and interest rate swaptions are Level 2 valuations. The fair value of interest rate swaps is determined using a discounted cash flow approach using forward market interest rates and discount rates, which are observable inputs. The fair value of interest rate swaptions is determined using an option pricing model. The following table presents financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2020 and 2019 : (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, 2020 Mortgage-backed securities $ 65,178 $ - $ 65,178 $ - Orchid Island Capital, Inc. common stock 13,548 13,548 - - December 31, 2019 Mortgage-backed securities $ 217,841 $ - $ 217,841 $ - Orchid Island Capital, Inc. common stock 8,892 8,892 - - TBA securities (59) - (59) - 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, 2020 and 2019 : (in thousands) Retained Interests 2020 2019 Gain included in earnings 59 315 Collections (59) (315) Balances, December 31 $ - $ - During the years ended December 31, 2020 and 2019 , there were no transfers of financial assets or liabilities between levels 1, 2 or 3. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | NOTE 16 . 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 Palm. 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 r evenue received under this management agreement for the years ended December 31, 2020 and 2019 , were approximately $6. 8 million and $ 6.9 million, respectively, accounting for approximately 55 % and 4 3 % of consolidated revenues, respectively. The investment po rtfolio segment includes the investment activities conducted by 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, 2020 and 2019 is as follows: (in thousands) Asset Investment Management Portfolio Corporate Eliminations Total 2020 Advisory services, external customers $ 6,795 $ - $ - $ - $ 6,795 Advisory services, other operating segments (1) 152 - - (152) - Interest and dividend income - 5,517 - - 5,517 Interest expense - (1,074) (1,151) (2) - (2,225) Net revenues 6,947 4,443 (1,151) (152) 10,087 Other expense - (9,825) (454) (3) - (10,279) Operating expenses (4) (3,653) (3,014) - - (6,667) Intercompany expenses (1) - (152) - 152 - Income (loss) before income taxes $ 3,294 $ (8,548) $ (1,605) $ - $ (6,859) Assets $ 1,469 $ 113,764 $ 13,468 $ - $ 128,701 Asset Investment Management Portfolio Corporate Eliminations Total 2019 Advisory services, external customers $ 6,908 $ - $ - $ - $ 6,908 Advisory services, other operating segments (1) 271 - - (271) - Interest and dividend income - 9,327 1 - 9,328 Interest expense - (4,603) (1,572) (2) - (6,175) Net revenues 7,179 4,724 (1,571) (271) 10,061 Other income (expense) - 112 (715) (3) - (603) Operating expenses (4) (2,750) (3,690) - - (6,440) Intercompany expenses (1) - (271) - 271 - Income (loss) before income taxes $ 4,429 $ 875 $ (2,286) $ - $ 3,018 Assets $ 1,457 $ 263,223 $ 14,809 $ - $ 279,489 (1) Includes advisory services revenue received by Bimini Advisors from Royal Palm . (2) Includes interest on long-term debt . (3) Includes gains (losses) on Eurodollar futures contracts entered into as a hedge on junior subordinated notes and fair value adjustments on retained interests in securitizations. (4) Corporate expenses are allocated based on each segment’s proportional share of total revenues. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 17 . RELATED PARTY TRANSACTIONS Other Relationships with Orchid At December 31, 2020 and 2019 , the Company owned 2,595,357 and 1,520,036 shares of Orchid common stock, respectively, representing approximately 3 .4% and 2.4 % of Orchid’s outstanding common stock, on such dates. During the years ended December 31, 2020 and 2019 , the Company received dividends on this common stock investment of approximately $1. 8 million and $1. 5 million, respectively . Robert Cauley, our Chief Executive Office r 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. R obert J. Dwyer and Frank E. Jaumot, our independent directors, each own shares of common stock of Orchid. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 18 . SUBSEQUENT EVENTS COVID-19 and CARES Act Update The Federal Housing Financing Agency (the “FHFA”) has instructed the GSEs on how they will handle servicer advances for loans that back Agency MBS that enter into forbearance, which should limit prepayments during the forbearance period that could have resulted otherwise. On January 29, 2021, the CDC issued guidance extending eviction moratoriums for covered persons through March 31, 2021. In addition, on February 9, 2021, the FHFA an nounced that the foreclosure moratorium begun under the CARES Act for loans backed by Fannie Mae and Freddie Mac and the eviction moratorium for real estate owned by Fannie Mae and Freddie Mac were extended until March 31, 2021. On February 16, 2021, the U .S. Housing and Urban Development Department announced the extension of the FHA eviction and foreclosure moratorium to June 30, 2021. The moratoriums on foreclosures and evictions will likely delay potential defaults on loans that would otherwise be bought out of Agency MBS pools. Depending on the ultimate resolution of the foreclosure or evictions, when and if it occurs, these loans may be removed from the pool into which they were securitized. If this were to occur, it would have the effect of delaying a prepayment on the Company’s securities until such time. As the majority of the Company’s Agency MBS assets were acquired at a premium to par, this will tend to increase the realized yield on the asset in question. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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. |
Variable Interest Entity [Policy Text Block] | Variable Interest Entities (VIEs) A variable interest entity ("VIE") is consolidated by an enterprise if it is deemed the primary beneficiary of the VIE. Bimini Capital has a common share investment in a trust used in c onnection with the issuance of Bimini Capital's junior subordinated notes. See Note 10 for a description of the accounting used for this VIE. We obtain interests in VIEs through our investments in mortgage-backed securities. Our interests in these VIEs are passive in nature and are not expected to result in us obtaining a controlling financial interest in these VIEs in the future. As a result, we do not consolidate these VIEs and we account for our interests in these VIEs as mortgage-backed securities. See Note 3 for additional information regarding our investments in mortgage-backed securities. Our maximum exposure to loss for these VIEs is the carrying value of the mortgage-backed securities. |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements are prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States (“GAAP”). In the opinion of management, all adjustments considered necessary for a fair presentation of the Company's consolidated financial position, results of operations and cash flows have been included and are of a normal and recurring nature. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ fro m those estimates. Significant estimates affecting the accompanying consolidated financial statements include determining the fair values of MBS, investment in Orchid common shares, and derivatives, determining the amounts of asset valuation allowances , t he impairment for the real property held for sale, and the computation of the income tax provision or benefit and the deferred tax asset allowances recorded for each accounting period . Management believes the estimates and assumptions underlying the financ ial statements are reasonable based on the information available as of December 31, 2020 , however uncertainty over the ultimate impact that COVID-19 will have on the global economy generally, and on our business in particular, makes any estimates and assumptions as of December 31 , 2020 inherently less certain than they would be absent the cur rent and potential impacts of COVID-19. |
Segment Reporting Policy [Policy Text Block] | 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 dec iding how to allocate resources and in assessing performance. The accounting policies of the operating segments are the same as the Company’s accounting policies described in this note with the exception that inter-segment revenues and expenses are includ ed in the presentation of segment results. For further information see Note 16 . |
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, 2020 and 2019 . 2020 2019 Cash and cash equivalents $ 7,558,342 $ 8,070,067 Restricted cash 3,353,015 4,315,050 Total cash, cash equivalents and restricted cash $ 10,911,357 $ 12,385,117 The Company maintains cash balances at several banks and excess margin with an exchange clearing member. A t times, 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. Res tricted cash balances are uninsured, but are held in separate accounts that are segregated from the general funds of the counterparty. The Company limits uninsured balances to only large, well-known banks and exchange clearing members and believes that it is not exposed to significant credit risk on cash and cash 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 man agement agreement, Orchid is obligated to pay Bimini Advisors a monthly management fee and a pro rata portion of certain overhead costs and to reimburse the Company for any direct expenses incurred on its behalf. Revenue s from management fees are recognize d over the period of time in which the service is performed. |
Mortgage-Backed Securities | Mortgage-Backed Securities The Company invests primarily in pass-through mortgage backed certificates issued by Freddie Mac, Fannie Mae or Ginnie Mae (“MBS”) , collateralized mortgage obligations (“CMOs”) , interest-only (“IO”) securities and inverse interest-only (“IIO”) securities representing interest in or obligations backed by pools of mortgage-backed loans. We refer to MBS and CMOs as PT MBS. We refer to IO and IIO securities as st ructured MBS. 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 operations for a particular reporting period and is consistent with the underlying economics and how the portfolio is managed. The Company records MBS transactions on the trade date. Security purchase s 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 recei vable recorded. Fair value is defined as the price that would be received to sell the asset or paid to transfer the liability in an orderly transaction between market participants at the measurement date. The fair value measurement assumes that the transaction to sell the asset or transfer the liability either occurs in the principal market for the asset or liability, or in the absence of a principal market, occurs in the most advantageous market for the asset or liability. Estimated fair values for MBS are based on independent pricing sources and/or third - party broker quotes, when available. Income on PT MBS is based on the stated interest rate of the security. Premiums or discounts present at the date of purchase are not amortized. Premium lost and di scount accretion resulting from monthly principal repayments are reflected in unrealized gains and 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. Th e 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 for future repor ting period s based on the new estimate of prepayments and the contractual terms of the security. For IIO securities, effective yield and income recognition calculations also take into account the index value applicable to the security. Changes in fair va lue 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 mortga ge backed securities thus captures the net effect of changes in the fair market value of securities caused by market developments and any premium or discount lost as a result of principal repayments during the period. |
Investment In Related Party [Policy Text Block] | Orchid Island Capital, Inc. Common Stock The Company accounts for its investment in Orchid common shares at fair value. The change in the fair value and dividends received on this investment are reflected in the consolidated statements of operations. 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. |
Retained Interests | Retained Interests in Securitizations The Company holds r etained interests in the subordinated tranches of securities created in securitization transactions . These retained interests currently have a recorded fair value of zero, as the prospect of future cash flows being received is uncertain . Any cash received from the retained interests is reflected in the consolidated statement s of operations . |
Derivative Financial Instruments | Derivative Fi nancial Instruments The Company uses derivative instruments to manage interest rate risk, facilitate asset/liability strategies and manage other exposures, and it may continue to do so in the future. The principal instruments that the Company has used to date are Treasury Note (“ T-Note ”) and Eurodollar futures contracts , and “to-be-announced” (“TBA”) securities, but it may enter into other derivatives in the future. The Company accounts for TBA securities as derivative instruments. Gains and losses associ ated with TBA securities transactions are reported in gain (loss) on derivative instruments in the accompanying consolidated statements of operations. Derivative instruments are carried at fair value, and changes in fair value are recorded in the consolidated statements of operations for each period. The Company’s derivative financial instruments are not designated as hedge accounting relationships, but rather are used as economic hedges of its portfolio assets and liabilities . Holding derivatives creates exposure to credit risk related to the potential for failure by counterparties to honor their commitments. In the event of default by a counterparty, the Company may have difficulty recovering its collateral and may not receive payments provided for under the terms of the agreement. The Company’s derivative agreements require it to post or receive collateral to mitigate such risk . In addition , the Com pany uses only registered central clearing exchanges and well-established commercial banks as counterparties , monitors positions with individual counterparties and adjusts posted collateral as required . |
Financial Instruments | Financial Instruments T he fair value of financial instruments for which it is practicable to estimate that value is disclosed either in the body of the consolidated financial statements or in the accompanying notes. MBS, Orchid common stock and derivative assets and liabilities are accounted for at fair value in the consolidated balance sheets. The methods and assumptions used to estimate fair value for these instruments are presented in Note 15 of the consolidated financial statements. The estimated fair value of cash and ca sh equivalents, restricted cash, accrued interest receivable, other assets, repurchase agreements , accrued interest payable and other liabilities generally approximates their carrying value due to the short-term nature of these financial instruments. It is impractical to estimate the fair value of the Company’s junior subordinated notes. Currently, there is a limited market for these types of instruments and the Company is unable to ascertain what interest rates would be available to the Company for s imilar financial instruments. Further i nformation regarding these instruments is presented in Note 10 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 depr eciated using the straight-line method over the estimated useful lives of the assets . Depreciation is included in administrative and other expenses in the consolidated statement of operations . |
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. R epurchase agreements are accounted for as collateralized financing transactions, which are carried at their con tractual amounts, including accrued interest, as specified in the respective agreements. |
Earnings Per Share | Earnings Per Share 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 using the treasury stock or two-class method, as applicable for common stock equivalents. However, the common stock equivalents are not included in computing diluted EPS if the result is anti-dilutive. 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 , if any, on each share of Class A Common Stock. Accordingly, shares of the Class B Common Stock are included in the computation of basic EPS using the two-class method and, consequently, are presented separately from Class A Common Stock. The shares of Class C Common Stock are not included in the basic EPS computation as these shares do not have pa rticipation rights. The outstanding shares of Class B and Class C Common Stock are not included in the computation of diluted EPS for the Class A Common Stock as the conditions for conversion into shares of Class A Common Stock were not met. |
Income Taxes | Income Taxes 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 n et 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 7 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. For tax filing purposes, Bimini Capital and its includable subsidiaries, and Royal Palm and its includable subsidiaries, file as separate tax paying entit ies. The Company assesses the likelihood, based on their technical merit, that uncertain 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 positi ons is adjusted when new information is available, or when an event occurs that requires a change. The Company recognizes tax positions in the consolidated financial statements only when it is more likely than not that the position will be sustained upon examination by the relevant taxing authority based on the technical merits of the position. A position that meets this standard is measured at the largest amount of benefit that will more likely than not be realized upon settlement. The difference between the benefit re cognized and the tax benefit claimed on a tax return is referred to as an unrecognized tax benefit and is recorded as a liability in the consolidated balance sheets . The C ompany records income tax-related interest and penalties, if applicable, within the i ncome tax provision. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements On January 1, 2020, we adopted Accounting Standards Update (“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 to be measured at amortized cost and certain other instruments to be measured usi ng an expected credit loss model (referred to as the current expected credit loss model). The Company’s adoption of this ASU did not have a material impact on its consolidated financial statements as its financial assets were already measured at fair value through earnings. In March 2020, the FASB issued ASU 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 provides optional expedients and exceptions to GAAP requirements f or modifications on debt instruments, leases, derivatives, and other contracts, related to the expected market transition from the London Interbank Offered Rate (“LIBOR,”), and certain other floating rate benchmark indices, or collectively, IBORs, to alter native reference rates. ASU 2020-04 generally considers contract modifications related to reference rate reform to be an event that does not require contract remeasurement at the modification date nor a reassessment of a previous accounting determination. The guidance in ASU 2020-04 is optional and may be elected over time, through December 31, 2022, as reference rate reform activities occur. The Company does not believe the adoption of this ASU will have a material impact on its consolidated financial stat ements . In January 2021, the FASB issued ASU 2021-01 “Reference Rate Reform (Topic 848). ASU 2021-01 expands the scope of ASC 848 to include all affected derivatives and give market participants the ability to apply certain aspects of the contract modification and hedge accounting expedients to derivative contracts affected by the discounting transition. In addition, ASU 2021-01 adds implementation guidance to permit a company to apply certain optional expedients to modifications of interest rate in dexes used for margining, discounting or contract price alignment of certain derivatives as a result of reference rate reform initiatives and extends optional expedients to account for a derivative contract modified as a continuation of the existing contra ct and to continue hedge accounting when certain critical terms of a hedging relationship change to modifications made as part of the discounting transition. The guidance in ASU 2021-01 is effective immediately and available generally through December 31, 2022, as reference rate reform activities occur. The Company does not believe the adoption of this ASU will have a material impact on its consolidated financial statements . |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of reconciliation of cash, cash equivalents and restricted cash | The following table presents the Company’s cash, cash equivalents and restricted cash as of December 31, 2020 and 2019 . 2020 2019 Cash and cash equivalents $ 7,558,342 $ 8,070,067 Restricted cash 3,353,015 4,315,050 Total cash, cash equivalents and restricted cash $ 10,911,357 $ 12,385,117 |
ADVISORY SERVICES (Tables)
ADVISORY SERVICES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019 . (in thousands) 2020 2019 Management fee $ 5,281 $ 5,528 Allocated overhead 1,514 1,380 Total $ 6,795 $ 6,908 |
MORTGAGE-BACKED SECURITIES (Tab
MORTGAGE-BACKED SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Mortgage Backed Securities [Abstract] | |
Schedule of Mortgage-Backed Securities Reconciliation | The following table presents the Company’s MBS portfolio as of December 31, 2020 and 2019 : (in thousands) 2020 2019 Fixed-rate Mortgages $ 64,902 $ 216,231 Interest-Only Securities 251 1,024 Inverse Interest-Only Securities 25 586 Total $ 65,178 $ 217,841 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property Plant and Equipment [TextBlock] | The composition of property and equipment at December 31, 2020 and 2019 follows: (in thousands) 2020 2019 Land $ 1,185 $ 1,185 Buildings and improvements 1,827 1,827 Computer equipment and software 181 181 Office furniture and equipment 198 198 Total cost 3,391 3,391 Less accumulated depreciation and amortization 1,298 1,228 Property and equipment, net $ 2,093 $ 2,163 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets [Abstract] | |
Schedule of Other Assets [TableTextBlock] | The composition of other assets at December 31, 2020 and 2019 follows: (in thousands) 2020 2019 Investment in Bimini Capital Trust II $ 804 $ 804 Prepaid expenses 278 215 Servicing advances 205 205 Servicing sale receivable, including accrued interest - 159 Refundable income taxes withheld - 1,578 Other 180 135 Total other assets $ 1,467 $ 3,096 |
REPURCHASE AGREEMENTS (Tables)
REPURCHASE AGREEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of Repurchase Agreements [Abstract] | |
Schedule of repurchase agreements and remaining maturities | As of December 31, 2020 and December 31, 2019 , 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, 2020 Fair value of securities pledged, including accrued interest receivable $ - $ 49,096 $ 8,853 $ 7,405 $ 65,354 Repurchase agreement liabilities associated with these securities $ - $ 49,120 $ 8,649 $ 7,302 $ 65,071 Net weighted average borrowing rate - 0.25% 0.23% 0.30% 0.25% December 31, 2019 Fair value of securities pledged, including accrued interest receivable $ - $ 137,992 $ 80,550 $ - $ 218,542 Repurchase agreement liabilities associated with these securities $ - $ 132,573 $ 77,381 $ - $ 209,954 Net weighted average borrowing rate - 2.02% 1.92% - 1.98% |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock | The table below summarizes fair value information about our derivative assets and liabilities as of December 31, 2020 and 2019 . (in thousands) Derivative Instruments and Related Accounts Balance Sheet Location December 31, 2020 December 31, 2019 Liabilities TBA Securities Other liabilities $ - $ 59 Total derivative liabilities, at fair value $ - $ 59 Margin Balances Posted to (from) Counterparties Futures contracts Restricted cash $ 1 $ 537 Total margin balances on derivative contracts $ 1 $ 537 |
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 and T-note futures positions at December 31, 2020 and December 31, 2019 . ($ in thousands) As of December 31, 2020 Junior Subordinated Debt Funding Hedges Average Weighted Weighted Contract Average Average Notional Entry LIBOR Open Expiration Year Amount Rate Rate Equity (1) 2021 $ 1,000 1.02% 0.18% $ (8) ($ in thousands) As of December 31, 2019 Repurchase Agreement Funding Hedges Average Weighted Weighted Contract Average Average Notional Entry LIBOR Open Expiration Year Amount Rate Rate Equity (1) Eurodollar Futures Contracts (Short Positions) 2020 $ 120,000 2.90% 1.67% $ (1,480) 2021 80,000 2.80% 1.57% (984) Total / Weighted Average $ 200,000 2.86% 1.63% $ (2,464) Treasury Note Futures Contracts (Short Positions) (2) March 2020 5-year T-Note futures $ 20,000 1.96% 2.06% 88 ($ in thousands) As of December 31, 2019 Junior Subordinated Debt Funding Hedges Average Weighted Weighted Contract Average Average Notional Entry LIBOR Open Expiration Year Amount Rate Rate Equity (1) 2020 $ 19,500 1.92% 1.68% $ (46) |
Schedule of To Be Announced Securities Table Tex tBlock | The following table summarizes our contracts to purchase and sell TBA securities as of December 31, 2019 . There were no open TBA contracts as of December 31, 2020 . ($ in thousands) Notional Net Amount Cost Market Carrying Long (Short) (1) Basis (2) Value (3) Value (4) December 31, 2019 30-Year TBA Securities: 3.5% $ (50,000) $ (51,414) $ (51,438) $ (24) 4.5% (50,000) (52,621) (52,656) (35) Totals $ (100,000) $ (104,035) $ (104,094) $ (59) |
Schedule of the effect of the Company's deriviative financial instruments on the consolidated statement of operations | Losses on Derivative Instruments The table below presents the effect of the Company’s derivative financial instruments on the consolidated statements o f operations for the years ended December 31, 2020 and 2019 . (in thousands) 2020 2019 Eurodollar futures contracts (short positions) Repurchase agreement funding hedges $ (2,328) $ (2,709) Junior subordinated debt funding hedges (517) (390) T-Note futures contracts (short positions) Repurchase agreement funding hedges (1,007) (522) Net TBA securities (1,441) (2,197) Losses on derivative instruments $ (5,293) $ (5,818) |
PLEDGED ASSETS (Tables)
PLEDGED ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 table below summarizes Bimini’s assets pledged as collateral under its repurchase agreements and derivative agreements as of December 31, 2020 and 2019 . ($ in thousands) December 31, 2020 December 31, 2019 Repurchase Derivative Repurchase Derivative Assets Pledged to Counterparties Agreements Agreements Total Agreements Agreements Total PT MBS - at fair value $ 64,902 $ - $ 64,902 $ 216,231 $ - $ 216,231 Structured MBS - at fair value 251 - 251 1,562 - 1,562 Accrued interest on pledged securities 201 - 201 749 - 749 Cash 3,352 1 3,353 3,778 537 4,315 Total $ 68,706 $ 1 $ 68,707 $ 222,320 $ 537 $ 222,857 |
Schedule of assets pledged to us from counterparties under our repurchase agreements. | Assets Pledged from Counterparties The table below summarizes assets pledged to Bimini from counterparties under repurchase agreements as of December 31, 2020 and 2019 . Cash received as margin is recognized in cash and cash equivalents with a corresponding amount recognized as an increase in repurchase agreements in the consolidated balance sheets . ($ in thousands) Assets Pledged to Bimini December 31, 2020 December 31, 2019 Repurchase agreements $ 80 $ - Total $ 80 $ - |
OFFSETTING ASSETS AND LIABILI_2
OFFSETTING ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019 . (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, 2020 Repurchase Agreements $ 65,071 $ - $ 65,071 $ (61,719) $ (3,352) $ - $ 65,071 $ - $ 65,071 $ (61,719) $ (3,352) $ - December 31, 2019 Repurchase Agreements $ 209,954 $ - $ 209,954 $ (206,176) $ (3,778) $ - TBA securities 59 - 59 - - 59 $ 210,013 $ - $ 210,013 $ (206,176) $ (3,778) $ 59 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Instruments [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt at December 31, 2020 and 2019 is summarized as follows: (in thousands) 2020 2019 Junior subordinated debt $ 26,804 $ 26,804 Note payable 657 677 Paycheck Protection Plan ("PPP") loan 152 - Total $ 27,613 $ 27,481 |
Debt Instrument Redemption [Table Text Block] | The table below presents the future scheduled principal payments on the Company’s long-term debt. (in thousands) Year Ending December 31, Amounts 2021 $ 21 2022 174 2023 24 2024 25 2025 26 Thereafter 27,343 Total $ 27,613 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The income tax benefit included in the consolidated statements of operations consists of the following for the years ended December 31, 2020 and 2019 : (in thousands) 2020 2019 Current $ 10 $ (196) Deferred (1,379) (10,086) Income tax benefit, net $ (1,369) $ (10,282) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The income tax provision differs from the amount computed by applying the federal income tax statutory rate of 21 percent on income or loss before income tax expense. A reconciliation for the years ended December 31, 2020 and 2019 is presented in the table below. (in thousands) 2020 2019 Federal tax (benefit) provision based on statutory rate applicable for each year $ (1,440) $ 634 State income tax (benefit) provision (302) 164 Increase (decrease) of deferred tax asset valuation allowance 349 (11,109) Other 24 29 Income tax benefit $ (1,369) $ (10,282) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred tax assets consisted of the following as of December 31, 2020 and 2019 : (in thousands) 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 58,701 $ 58,250 Orchid Island Capital, Inc. common stock 3,083 3,338 MBS unrealized losses and gains 241 (377) Capital loss carryforwards 2,573 1,743 Management agreement 813 813 Other 1,232 1,148 66,643 64,915 Valuation allowance (31,975) (31,626) Net deferred tax assets $ 34,668 $ 33,289 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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) 2020 2019 Basic and diluted EPS per Class A common share: (Loss) income attributable to Class A common shares: Basic and diluted $ (5,474) $ 13,265 Weighted average common shares: Class A common shares outstanding at the balance sheet date 11,609 11,609 Effect of weighting - 569 Weighted average shares-basic and diluted 11,609 12,178 (Loss) income per Class A common share: Basic and diluted $ (0.47) $ 1.09 (in thousands, except per-share information) 2020 2019 Basic and diluted EPS per Class B common share: (Loss) income attributable to Class B common shares: Basic and diluted $ (15) $ 35 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 $ (0.47) $ 1.09 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019 : (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, 2020 Mortgage-backed securities $ 65,178 $ - $ 65,178 $ - Orchid Island Capital, Inc. common stock 13,548 13,548 - - December 31, 2019 Mortgage-backed securities $ 217,841 $ - $ 217,841 $ - Orchid Island Capital, Inc. common stock 8,892 8,892 - - TBA securities (59) - (59) - |
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, 2020 and 2019 : (in thousands) Retained Interests 2020 2019 Gain included in earnings 59 315 Collections (59) (315) Balances, December 31 $ - $ - |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule Of Segment Reporting Information By Segment [Text Block] | Segment information for the years ended December 31, 2020 and 2019 is as follows: (in thousands) Asset Investment Management Portfolio Corporate Eliminations Total 2020 Advisory services, external customers $ 6,795 $ - $ - $ - $ 6,795 Advisory services, other operating segments (1) 152 - - (152) - Interest and dividend income - 5,517 - - 5,517 Interest expense - (1,074) (1,151) (2) - (2,225) Net revenues 6,947 4,443 (1,151) (152) 10,087 Other expense - (9,825) (454) (3) - (10,279) Operating expenses (4) (3,653) (3,014) - - (6,667) Intercompany expenses (1) - (152) - 152 - Income (loss) before income taxes $ 3,294 $ (8,548) $ (1,605) $ - $ (6,859) Assets $ 1,469 $ 113,764 $ 13,468 $ - $ 128,701 Asset Investment Management Portfolio Corporate Eliminations Total 2019 Advisory services, external customers $ 6,908 $ - $ - $ - $ 6,908 Advisory services, other operating segments (1) 271 - - (271) - Interest and dividend income - 9,327 1 - 9,328 Interest expense - (4,603) (1,572) (2) - (6,175) Net revenues 7,179 4,724 (1,571) (271) 10,061 Other income (expense) - 112 (715) (3) - (603) Operating expenses (4) (2,750) (3,690) - - (6,440) Intercompany expenses (1) - (271) - 271 - Income (loss) before income taxes $ 4,429 $ 875 $ (2,286) $ - $ 3,018 Assets $ 1,457 $ 263,223 $ 14,809 $ - $ 279,489 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES - Organization (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Entity Incorporation, Date of Incorporation | Sep. 24, 2003 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES - COVID-19 Impact (narrative) (Details) - USD ($) | 2 Months Ended | 3 Months Ended | 12 Months Ended | |
Feb. 26, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
COVID [Line Items] | ||||
Proceeds From Sale Of Mortgage Backed Securities MBS Categorized As Trading | $ 170,800,000 | $ 171,200,000 | $ 176,249,711 | $ 43,975,274 |
Realized Gains On Investments | $ (5,700,000) | $ 5,800,000 | (5,744,589) | 23,078 |
Proceeds from Issuance of Long-term Debt | $ 152,165 | $ 680,000 |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | |||
Cash and cash equivalents | $ 7,558,342 | $ 8,070,067 | |
Restricted cash | 3,353,015 | 4,315,050 | |
Cash Cash Equivalents And Restricted Cash | $ 10,911,357 | $ 12,385,117 | $ 6,240,488 |
ADVISORY SERVICES (Details)
ADVISORY SERVICES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Advisory Services [Line Items] | ||
Advisory services | $ 6,795,072 | $ 6,907,910 |
Due From Affiliate | 632,471 | 622,120 |
Orchid Island Capital [Member] | ||
Advisory Services [Line Items] | ||
Advisory services | 6,795,000 | 6,908,000 |
Due From Affiliate | 600,000 | 600,000 |
Orchid Island Capital [Member] | Management Fees [Member] | ||
Advisory Services [Line Items] | ||
Advisory services | 5,281,000 | 5,528,000 |
Orchid Island Capital [Member] | Overhead Allocation [Member] | ||
Advisory Services [Line Items] | ||
Advisory services | $ 1,514,000 | $ 1,380,000 |
MORTGAGE-BACKED SECURITIES - M
MORTGAGE-BACKED SECURITIES - MBS Portfolio (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair Value | $ 65,178,231 | $ 217,840,953 |
Fixed Rate Mortgages [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair Value | 64,902,000 | 216,231,000 |
Interest Only Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair Value | 251,000 | 1,024,000 |
Inverse Interest Only [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair Value | $ 25,000 | $ 586,000 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Property Plant and Equipment, Gross | $ 3,391,000 | $ 3,391,000 |
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment | 1,298,000 | 1,228,000 |
Property Plant And Equipment Net | 2,093,440 | 2,162,975 |
Depreciation | 70,000 | 73,000 |
Impairment of Real Estate | 0 | 673,438 |
ProceedsFromSaleOfPropertyHeldForSale | 461,590 | 0 |
Gains From Disposition Of Property Held For Sale | (11,591) | 0 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property Plant and Equipment, Gross | 1,185,000 | 1,185,000 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property Plant and Equipment, Gross | 1,827,000 | 1,827,000 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property Plant and Equipment, Gross | 181,000 | 181,000 |
OfficeEquipmentMember | ||
Property, Plant and Equipment [Line Items] | ||
Property Plant and Equipment, Gross | $ 198,000 | $ 198,000 |
REPURCHASE AGREEMENTS - Narrati
REPURCHASE AGREEMENTS - Narrative (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Restricted Cash And Cash Equivalents At Carrying Value | $ 3,353,015 | $ 4,315,050 |
Aggregate amount at risk will all counterparties | 3,600,000 | 11,800,000 |
Repurchase Agreements [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Restricted Cash And Cash Equivalents At Carrying Value | $ 3,352,000 | $ 3,778,000 |
REPURCHASE AGREEMENTS - Maturit
REPURCHASE AGREEMENTS - Maturities (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Fair Value of securities pledged, including accrued interest receivable | $ 65,354,000 | $ 218,542,000 |
Outstanding repurchase obligations | $ 65,071,113 | $ 209,954,000 |
Net weighted average borrowing rate | 0.25% | 1.98% |
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 | $ 49,096,000 | $ 137,992,000 |
Outstanding repurchase obligations | $ 49,120,000 | $ 132,573,000 |
Net weighted average borrowing rate | 0.25% | 2.02% |
Between 31 and 90 Days [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Fair Value of securities pledged, including accrued interest receivable | $ 8,853,000 | $ 80,550,000 |
Outstanding repurchase obligations | $ 8,649,000 | $ 77,381,000 |
Net weighted average borrowing rate | 0.23% | 1.92% |
Greater Than 90 days [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Fair Value of securities pledged, including accrued interest receivable | $ 7,405,000 | $ 0 |
Outstanding repurchase obligations | $ 7,302,000 | $ 0 |
Net weighted average borrowing rate | 0.30% | 0.00% |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Derivative Assets and Liabilties (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Derivitive Financial Instruments [Line Items] | ||
Restricted Cash And Cash Equivalents At Carrying Value | $ 3,353,015 | $ 4,315,050 |
NotDesignatedAsHedgingInstrumentEconomicHedgeMember | ||
Derivitive Financial Instruments [Line Items] | ||
Derivative Asset Fair Value Gross Liability | 0 | 59,000 |
Restricted Cash And Cash Equivalents At Carrying Value | 1,000 | 537,000 |
TBA Contracts [Member] | NotDesignatedAsHedgingInstrumentEconomicHedgeMember | ||
Derivitive Financial Instruments [Line Items] | ||
Derivative Asset Fair Value Gross Liability | 0 | 59,000 |
Eurodollar Future Margin [Member] | NotDesignatedAsHedgingInstrumentEconomicHedgeMember | ||
Derivitive Financial Instruments [Line Items] | ||
Restricted Cash And Cash Equivalents At Carrying Value | $ 1,000 | $ 537,000 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Interest Rate Futures Positions (Details) - Short [Member] - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Repurchase Agreement Funding Hedges [Member] | Eurodollar Future [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 200,000,000 | |
Entry Rate | 2.86% | |
Weighted Average Effective Rate | 1.63% | |
Open Equity | $ (2,464,000) | |
Repurchase Agreement Funding Hedges [Member] | Year 2020 Expiration [Member] | Eurodollar Future [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 120,000,000 | |
Entry Rate | 2.90% | |
Weighted Average Effective Rate | 1.67% | |
Open Equity | $ (1,480,000) | |
Repurchase Agreement Funding Hedges [Member] | Year 2020 Expiration [Member] | Treasury Note Future [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 20,000,000 | |
Entry Rate | 1.96% | |
Weighted Average Effective Rate | 2.06% | |
Open Equity | $ 88,000 | |
Repurchase Agreement Funding Hedges [Member] | Year 2021 Expiration [Member] | Eurodollar Future [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 80,000,000 | |
Entry Rate | 2.80% | |
Weighted Average Effective Rate | 1.57% | |
Open Equity | $ (984,000) | |
Junior Subordinated Debt Funding Hedges [Member] | Year 2020 Expiration [Member] | Eurodollar Future [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 19,500,000 | |
Entry Rate | 1.92% | |
Weighted Average Effective Rate | 1.68% | |
Open Equity | $ (46,000) | |
Junior Subordinated Debt Funding Hedges [Member] | Year 2021 Expiration [Member] | Eurodollar Future [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 1,000,000 | |
Entry Rate | 1.02% | |
Weighted Average Effective Rate | 0.18% | |
Open Equity | $ (8,000) |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - TBA positions (Details) - 30 Year [Member] - Short [Member] | Dec. 31, 2019USD ($) |
Derivatives, Fair Value [Line Items] | |
Notional Amount | $ 100,000,000 |
Cost Basis | (104,035,000) |
Market Value Of TBA Contract | (104,094,000) |
Derivative Asset Fair Value Gross Liability | (59,000) |
3.5% Member | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | 50,000,000 |
Cost Basis | (51,414,000) |
Market Value Of TBA Contract | (51,438,000) |
Derivative Asset Fair Value Gross Liability | (24,000) |
4.5% Member | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | 50,000,000 |
Cost Basis | (52,621,000) |
Market Value Of TBA Contract | (52,656,000) |
Derivative Asset Fair Value Gross Liability | $ (35,000) |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS - Effect on the consolidated statements of operations (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
(Losses) gains on derivative instruments | $ (5,292,521) | $ (5,817,825) |
Eurodollar Future [Member] | Repurchase Agreement Funding Hedges [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
(Losses) gains on derivative instruments | (2,328,000) | (2,709,000) |
Eurodollar Future [Member] | Junior Subordinated Debt Funding Hedges [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
(Losses) gains on derivative instruments | (517,000) | (390,000) |
Treasury Note Future [Member] | Repurchase Agreement Funding Hedges [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
(Losses) gains on derivative instruments | (1,007,000) | (522,000) |
TBA Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
(Losses) gains on derivative instruments | $ (1,441,000) | $ (2,197,000) |
PLEDGED ASSETS - Assets Pledged
PLEDGED ASSETS - Assets Pledged to Counterparties (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Financial Instrument Secured2 [Domain] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Interest Receivable | $ 201,000 | $ 749,000 |
Restricted Cash And Cash Equivalents At Carrying Value | 3,353,000 | 4,315,000 |
Repurchase Agreements [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Interest Receivable | 201,000 | 749,000 |
Restricted Cash And Cash Equivalents At Carrying Value | 3,352,000 | 3,778,000 |
Derivative [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Interest Receivable | 0 | 0 |
Restricted Cash And Cash Equivalents At Carrying Value | 1,000 | 537,000 |
Residential Mortgage Backed Securities [Member] | Financial Instrument Secured2 [Domain] | 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 | 64,902,000 | 216,231,000 |
Residential Mortgage Backed Securities [Member] | Financial Instrument Secured2 [Domain] | 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 | 251,000 | 1,562,000 |
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 | 64,902,000 | 216,231,000 |
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 | 251,000 | 1,562,000 |
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 |
PLEDGED ASSETS - Assets Pledg_2
PLEDGED ASSETS - Assets Pledged from Counterparties (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Repurchase Agreements [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Cash Pledged By Counterparties | $ 80,000 | $ 0 |
OFFSETTING ASSETS AND LIABILI_3
OFFSETTING ASSETS AND LIABILITIES - Offsetting of Liabilties (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Offsetting Liabilities [Line Items] | ||
Gross Amount Of Recognized Liabilties | $ 65,071,000 | $ 210,013,000 |
Gross Amount Of Liabilties Offset In The Balance Sheet | 0 | 0 |
Net Amount Of Liabilities Presented In The Balance Sheet | 65,071,000 | 210,013,000 |
Gross Amount Of Financial Instruments Posted Not Offset in Balance Sheet | (61,719,000) | (206,176,000) |
Gross Amounts Of Cash Posted Not Offset In Balance Sheet | (3,352,000) | (3,778,000) |
Net Amount Of Liabilities | 0 | 59,000 |
Repurchase Agreements [Member] | ||
Offsetting Liabilities [Line Items] | ||
Gross Amount Of Recognized Liabilties | 65,071,000 | 209,954,000 |
Gross Amount Of Liabilties Offset In The Balance Sheet | 0 | 0 |
Net Amount Of Liabilities Presented In The Balance Sheet | 65,071,000 | 209,954,000 |
Gross Amount Of Financial Instruments Posted Not Offset in Balance Sheet | (61,719,000) | (206,176,000) |
Gross Amounts Of Cash Posted Not Offset In Balance Sheet | (3,352,000) | (3,778,000) |
Net Amount Of Liabilities | $ 0 | 0 |
TBA Contracts [Member] | ||
Offsetting Liabilities [Line Items] | ||
Gross Amount Of Recognized Liabilties | 59,000 | |
Gross Amount Of Liabilties Offset In The Balance Sheet | 0 | |
Net Amount Of Liabilities Presented In The Balance Sheet | 59,000 | |
Gross Amount Of Financial Instruments Posted Not Offset in Balance Sheet | 0 | |
Gross Amounts Of Cash Posted Not Offset In Balance Sheet | 0 | |
Net Amount Of Liabilities | $ 59,000 |
LONG-TERM DEBT- Narrative (Deta
LONG-TERM DEBT- Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Outstanding Principal Balance | $ 27,612,781 | $ 27,481,121 |
Junior Subordinated Debt [Member] | Bimini Capital Trust II Junior Subordinated Note [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding Principal Balance | $ 26,804,000 | 26,804,000 |
Basis Spread on Variable Rate | 3.50% | |
Interest Rate at Period End | 3.72% | |
Note Payable | US Treasury (UST) Interest Rate [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding Principal Balance | $ 657,000 | 677,000 |
Basis Spread on Variable Rate | 3.25% | |
Interest Rate at Period End | 4.89% | |
Original Loan Amount | $ 680,000 | |
Installment Amount | 4,500 | |
Paycheck Protection Plan [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding Principal Balance | $ 152,000 | $ 0 |
LONG-TERM DEBT - Outstanding Ba
LONG-TERM DEBT - Outstanding Balances (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 27,612,781 | $ 27,481,121 |
Junior Subordinated Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 26,804,000 | 26,804,000 |
Note Payable | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 657,000 | 677,000 |
Paycheck Protection Plan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 152,000 | $ 0 |
LONG-TERM DEBT - Scheduled Prin
LONG-TERM DEBT - Scheduled Principal Balances (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | |
Scheduled Principal Payments | $ 27,613,000 |
Debt Instrument, Redemption, Period One [Member] | |
Debt Instrument [Line Items] | |
Scheduled Principal Payments | 21,000 |
Debt Instrument, Redemption, Period Two [Member] | |
Debt Instrument [Line Items] | |
Scheduled Principal Payments | 174,000 |
Debt Instrument, Redemption, Period Three [Member] | |
Debt Instrument [Line Items] | |
Scheduled Principal Payments | 24,000 |
Debt Instrument, Redemption, Period Four [Member] | |
Debt Instrument [Line Items] | |
Scheduled Principal Payments | 25,000 |
Debt Instrument, Redemption, Period Five [Member] | |
Debt Instrument [Line Items] | |
Scheduled Principal Payments | 26,000 |
Debt Instrument, Redemption, Thereafter [Member] | |
Debt Instrument [Line Items] | |
Scheduled Principal Payments | $ 27,343,000 |
CAPITAL STOCK - Stock Repurchas
CAPITAL STOCK - Stock Repurchase Plan (Details) - Class A Common Stock [Member] - March 2018 Stock Repurchase Plan [Member] | 33 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Share Repurchase Program [Line Items] | |
Authorized Shares | 500,000 |
Stock Repurchase Program Expiration Date | Nov. 15, 2021 |
Aggregate Repurchase Cost | $ | $ 166,945 |
Shares Acquired | 70,404 |
Average Cost Per Share | $ / shares | $ 2.37 |
CAPITAL STOCK - Tender Offer (D
CAPITAL STOCK - Tender Offer (Details) - Class A Common Stock [Member] - July 2019 Tender Offer [Member] | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Tender Offer [Line Items] | |
Treasury Stock Shares Acquired | shares | 1,100,000 |
Treasury Stock Value Acquired Cost Method | $ | $ 2,200,000 |
Treasury Stock Acquired Average Cost Per Share | $ / shares | $ 2 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - Citigroup Demand For Payment [Member] - Threatened Litigation [Member] - Breach Of Representations and Warranties [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Loss Contingencies [Line Items] | |
Demand For Payment Date | April 22, 2020 |
Loss Contingency, Damages Sought, Value | $ 33.1 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes [Line Items] | ||
Income tax provision (benefit) | $ (1,369,416) | $ (10,281,612) |
Reduction of deferred tax valuation allowance | 349,000 | (11,109,000) |
Deferred Tax Assets Capital Loss Carryforwards | 2,573,000 | 1,743,000 |
Federal [Member] | ||
Income Taxes [Line Items] | ||
Operating Loss Carryforwards | 268,900,000 | 267,100,000 |
Florida [Member] | ||
Income Taxes [Line Items] | ||
Operating Loss Carryforwards | 40,800,000 | 39,100,000 |
Bimini Advisors Holdings [Member] | ||
Income Taxes [Line Items] | ||
Infinite Life Intangible | 3,200,000 | |
Deferred Tax Asset Infinite Life Intangible | $ 800,000 | $ 800,000 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Provision (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Current Federal State And Local Tax Expense Benefit | $ 10,000 | $ (196,000) |
Deferred Federal State And Local Tax Expense Benefit | (1,379,000) | (10,086,000) |
Income tax provision | $ (1,369,416) | $ (10,281,612) |
INCOME TAXES - Income Tax Recon
INCOME TAXES - Income Tax Reconciliation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate | $ (1,440,000) | $ 634,000 |
IncomeTaxReconciliationStateAndLocalIncomeTaxes | (302,000) | 164,000 |
IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance | 349,000 | (11,109,000) |
IncomeTaxReconciliationOtherReconcilingItems | 24,000 | 29,000 |
Income tax provision | $ (1,369,416) | $ (10,281,612) |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
DeferredTaxAssetsOperatingLossCarryforwards | $ 58,701,000 | $ 58,250,000 |
DeferredTaxAssetsInvestments | 3,083,000 | 3,338,000 |
DeferredTaxAssetsUnrealizedLossesOnAvailableforSaleSecuritiesGross | 241,000 | 377,000 |
Deferred Tax Assets Capital Loss Carryforwards | 2,573,000 | 1,743,000 |
DeferredTaxAssetsGoodwillAndIntangibleAssets | 813,000 | 813,000 |
DeferredTaxAssetsOther | 1,232,000 | 1,148,000 |
Deferred Tax Assets Gross | 66,643,000 | 64,915,000 |
Deferred Tax Assets, Valuation Allowance | 31,975,000 | 31,626,000 |
Deferred Income Tax Assets Net | $ 33,288,536 | $ 34,668,467 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Class A Common Stock [Member] | ||
Net Income (Loss) Available to Common Stockholders, Diluted [Abstract] | ||
Net Income (Loss) Available to Common Stockholders, Basic | $ (5,474,000) | $ 13,265,000 |
Net Income (Loss) Available to Common Stockholders, Diluted | $ (5,474,000) | $ 13,265,000 |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | ||
Common Shares Outstanding | 11,609,000 | 11,609,000 |
Effect of Weighting | 0 | 569,000 |
Weighted Average Shares - Basic and Diluted | 11,608,555 | 12,178,160 |
Income (Loss) Per Share - Basic | $ (0.47) | $ 1.09 |
Income (Loss) Pe Share - Diluted | $ (0.47) | $ 1.09 |
Class B Common Stock [Member] | ||
Net Income (Loss) Available to Common Stockholders, Diluted [Abstract] | ||
Net Income (Loss) Available to Common Stockholders, Basic | $ (15,000) | $ 35,000 |
Net Income (Loss) Available to Common Stockholders, Diluted | $ (15,000) | $ 35,000 |
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 | $ (0.47) | $ 1.09 |
Income (Loss) Pe Share - Diluted | $ (0.47) | $ 1.09 |
FAIR VALUE - Assets and Liabili
FAIR VALUE - Assets and Liabilities Recorded at Fair Value on Recurring Basis (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities | $ 65,178,231 | $ 217,840,953 |
Orchid Island Capital, Inc. common stock, at fair value | 13,547,764 | 8,892,211 |
TBA Contracts | (59,000) | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities | 0 | 0 |
Orchid Island Capital, Inc. common stock, at fair value | 13,548,000 | 8,892,000 |
TBA Contracts | 0 | |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities | 65,178,000 | 217,841,000 |
Orchid Island Capital, Inc. common stock, at fair value | 0 | 0 |
TBA Contracts | (59,000) | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities | 0 | 0 |
Orchid Island Capital, Inc. common stock, at fair value | $ 0 | 0 |
TBA Contracts | $ 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, 2020 | Dec. 31, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $ 0 | $ 0 |
Gain (loss) Included in Earnings | 59,000 | 315,000 |
Collections | (59,000) | (315,000) |
Ending Balance | $ 0 | $ 0 |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation of Segment Revenues (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Advisory services, external customers | $ 6,795,072 | $ 6,907,910 |
Advisory Services Other Segments | 0 | 0 |
Interest and dividend income | 5,517,000 | 9,328,000 |
Interest expense | 2,225,000 | 6,175,000 |
Net Segment Revenue | 10,087,000 | 10,061,000 |
Other Income | (10,279,000) | (603,000) |
Operating Expenses | 6,667,000 | 6,440,000 |
Intercompany Expenses | 0 | 0 |
Pre-tax book income | (6,858,558) | 3,018,365 |
Assets | 128,700,569 | 279,488,948 |
Asset Management Segment [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Assets | 1,469,000 | 1,457,000 |
Investment Portfolio Segment [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Assets | 113,764,000 | 263,223,000 |
Operating Segments [Member] | Asset Management Segment [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Advisory services, external customers | 6,795,000 | 6,908,000 |
Advisory Services Other Segments | 152,000 | 271,000 |
Interest and dividend income | 0 | 0 |
Interest expense | 0 | 0 |
Net Segment Revenue | 6,947,000 | 7,179,000 |
Other Income | 0 | 0 |
Operating Expenses | 3,653,000 | 2,750,000 |
Intercompany Expenses | 0 | 0 |
Pre-tax book income | 3,294,000 | 4,429,000 |
Operating Segments [Member] | Investment Portfolio Segment [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Advisory services, external customers | 0 | 0 |
Advisory Services Other Segments | 0 | 0 |
Interest and dividend income | 5,517,000 | 9,327,000 |
Interest expense | 1,074,000 | 4,603,000 |
Net Segment Revenue | 4,443,000 | 4,724,000 |
Other Income | (9,825,000) | 112,000 |
Operating Expenses | 3,014,000 | 3,690,000 |
Intercompany Expenses | 152,000 | 271,000 |
Pre-tax book income | (8,548,000) | 875,000 |
Corporate, Non-Segment [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Advisory services, external customers | 0 | 0 |
Advisory Services Other Segments | 0 | 0 |
Interest and dividend income | 0 | 1,000 |
Interest expense | 1,151,000 | 1,572,000 |
Net Segment Revenue | (1,151,000) | (1,571,000) |
Other Income | (454,000) | (715,000) |
Operating Expenses | 0 | 0 |
Intercompany Expenses | 0 | 0 |
Pre-tax book income | (1,605,000) | (2,286,000) |
Assets | 13,468,000 | 14,809,000 |
Intersegment Eliminations [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Advisory services, external customers | 0 | 0 |
Advisory Services Other Segments | (152,000) | (271,000) |
Interest and dividend income | 0 | 0 |
Interest expense | 0 | 0 |
Net Segment Revenue | (152,000) | (271,000) |
Other Income | 0 | 0 |
Operating Expenses | 0 | 0 |
Intercompany Expenses | (152,000) | (271,000) |
Pre-tax book income | $ 0 | $ 0 |
SEGMENT INFORMATION - Revenue F
SEGMENT INFORMATION - Revenue From Major Customer (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Entity Wide Revenue Major Customer [Line Items] | ||
Revenues | $ 12,311,805 | $ 16,236,085 |
Total Revenue [Member] | Orchid Island Capital [Member] | ||
Entity Wide Revenue Major Customer [Line Items] | ||
Revenues | $ 6,800,000 | $ 6,900,000 |
Percentgage of Total Sales | 55.00% | 43.00% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||
Investment Income, Dividend | $ 1,752,730 | $ 1,459,235 |
Orchid Island Capital [Member] | ||
Related Party Transaction [Line Items] | ||
Investment Owned Balance Shares | 2,595,357 | 1,520,036 |
Equity Method Investment Ownership Percentage | 3.40% | 2.40% |