Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Feb. 21, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-K | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Dec-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'FY | ' |
Entity Registrant Name | 'Orchid Island Capital, Inc. | ' |
Entity Central Index Key | '0001518621 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well Known Seasoned Issuer | 'No | ' |
Entity Public Float | ' | $26,535,271 |
Entity Common Stock Shares Outstanding | ' | 5,411,665 |
Trading Symbol | 'ORC | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Mortgage-backed securities, at fair value | ' | ' |
Pledged to counterparties | $335,774,980 | $109,604,559 |
Unpledged | 15,447,532 | 5,775,015 |
Total mortgage-backed securities | 351,222,512 | 115,379,574 |
Cash and cash equivalents | 8,169,402 | 2,537,257 |
Restricted cash | 2,445,625 | 449,000 |
Accrued interest receivable | 1,559,437 | 440,877 |
Due from affiliates | 0 | 45,126 |
Prepaid expenses and other assets | 179,071 | 9,122 |
Total Assets | 363,576,047 | 118,860,956 |
Liabilities | ' | ' |
Repurchase agreements | 318,557,054 | 103,941,174 |
Accrued interest payable | 91,461 | 54,084 |
Due to affiliates | 81,925 | 0 |
Accounts payable, accrued expenses and other | 80,260 | 140,723 |
Total Liabilities | 318,810,700 | 104,135,981 |
Stockholders' Equity | ' | ' |
Preferred stock, $0.01 par value | 0 | 0 |
Common Stock, $0.01 par value | 33,417 | 1,541 |
Additional paid in capital | 46,115,961 | 15,409,459 |
Accumulated deficit | -1,384,031 | -686,025 |
Total Stockholders Equity | 44,765,347 | 14,724,975 |
Total Liabilities and Stockholders Equity | $363,576,047 | $118,860,956 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Statement Of Financial Position [Abstract] | ' | ' |
Preferred Stock, par value (in dollars per share) | $0.01 | ' |
Preferred Shares Authorized | 100,000,000 | 0 |
Preferred Shares Issued | 0 | 0 |
Preferred Shares Outstanding | 0 | 0 |
Common Stock, par value (in dollars per share) | $0.01 | $0.01 |
Common Stock Shares Authorized | 500,000,000 | 1,000,000 |
Common Shares Issued | 3,341,665 | 154,110 |
Common Shares Outstanding | 3,341,665 | 154,110 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Portfolio Income | ' | ' |
Interest income | $9,198,858 | $2,697,922 |
Interest expense | 1,126,204 | 277,328 |
Net interest income | 8,072,654 | 2,420,594 |
Realized losses on mortgage-backed securities | -1,198,160 | -307,795 |
Unrealized losses on mortgage-backed securities | -10,732,690 | -805,932 |
Gains (losses) on Eurodollar futures contracts | 4,828,288 | -39,725 |
Net portfolio income | 970,092 | 1,267,142 |
Expenses | ' | ' |
Management Fees | 664,100 | 248,900 |
Directors fees and liability insurance | 290,232 | 0 |
Audit, legal and other professional fees | 419,999 | 177,906 |
Direct REIT operating expenses | 167,989 | 199,979 |
Other administrative | 125,778 | 106,014 |
Total expenses | 1,668,098 | 732,799 |
Net (loss) income | ($698,006) | $534,343 |
Basic and diluted net (loss) income per share | ' | ' |
Basic | ($0.23) | $0.54 |
Diluted | ($0.23) | $0.54 |
Weighted Average Shares Outstanding | ' | ' |
Weighted Average Number Of Basic Shares Outstanding | 3,011,912 | 981,665 |
Weighted Average Number Of Diluted Shares Outstanding | 3,011,912 | 981,665 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid In Capital [Member] | Retained Earnings [Member] |
Balances at Dec. 31, 2011 | $13,779,632 | $1,500 | $14,998,500 | ($1,220,368) |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' |
Net loss | 534,343 | ' | ' | 534,343 |
Issuance of common stock pursuant to public offering | 0 | ' | ' | ' |
Issuance of common shares to repay amount due to Bimini Capital Management, Inc. | 411,000 | 41 | 410,959 | ' |
Balances at Dec. 31, 2012 | 14,724,975 | 1,541 | 15,409,459 | -686,025 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' |
Net loss | -698,006 | ' | ' | -698,006 |
Cash dividend declared | -4,661,622 | ' | -4,661,622 | ' |
Issuance of common stock pursuant to public offering | 35,400,000 | 23,600 | 35,376,400 | ' |
Issuance of common stock pursuant to stock dividend | 0 | 8,276 | -8,276 | ' |
Issuance of common shares to repay amount due to Bimini Capital Management, Inc. | 0 | ' | ' | ' |
Balances at Dec. 31, 2013 | $44,765,347 | $33,417 | $46,115,961 | ($1,384,031) |
Statement_of_Stockholders_Equi
Statement of Stockholders' Equity (Parentheticals) (USD $) | 1 Months Ended | 12 Months Ended | ||||||||||||
Feb. 28, 2014 | Jan. 31, 2014 | Dec. 31, 2013 | Nov. 30, 2013 | Oct. 31, 2013 | Sep. 30, 2013 | Aug. 31, 2013 | Jul. 31, 2013 | Jun. 30, 2013 | 31-May-13 | Apr. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statement Of Stockholders Equity [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends Declared Per Common Share | $0.18 | $0.18 | $0.18 | $0.14 | $0.14 | $0.14 | $0.14 | $0.14 | $0.14 | $0.14 | $0.14 | $0.14 | $1.40 | $0 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net (loss) income | ($698,006) | $534,343 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ' | ' |
Realized and unrealized losses on mortgage-backed securities | 11,930,850 | 1,113,727 |
Changes in operating assets and liabilities | ' | ' |
Accrued interest receivable | -1,118,560 | -66,317 |
Prepaid expenses and other assets | -119,776 | 791 |
Accrued interest payable | 37,377 | 42,588 |
Accounts payable, accrued expenses and other | -60,463 | 126,140 |
Due to affiliates | 127,051 | 127,813 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 10,098,473 | 1,879,085 |
From mortgage-backed securities investments | ' | ' |
Purchases | -687,584,182 | -199,077,871 |
Sales | 408,981,989 | 129,068,510 |
Principal repayments | 30,778,232 | 9,517,695 |
Increase in restricted cash | -1,996,625 | -358,250 |
NET CASH USED IN INVESTING ACTIVITIES | -249,820,586 | -60,849,916 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Proceeds from repurchase agreements | 3,319,670,062 | 581,462,510 |
Principal payments on repurchase agreements | -3,105,054,182 | -521,846,336 |
Cash dividends | -4,661,622 | 0 |
Proceeds from issuance of common stock | 35,400,000 | 0 |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 245,354,258 | 59,616,174 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 5,632,145 | 645,343 |
CASH AND CASH EQUIVALENTS, beginning of the period | 2,537,257 | 1,891,914 |
CASH AND CASH EQUIVALENTS, end of the period | 8,169,402 | 2,537,257 |
Cash paid during the period for: | ' | ' |
Interest | 1,088,827 | 234,740 |
SUPPLEMENTAL DISCLOSURES OF NONCASH FINANCING ACTIVITIES: | ' | ' |
Dividends paid in shares of Class A Common Stock | 8,276 | 0 |
Issuance of common shares to repay amount due to Bimini Capital Management, Inc. | $0 | $411,000 |
Organization_and_Significant_A
Organization and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Organization and Significant Accounting Policies | ' |
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | |
Organization and Business Description | |
Orchid Island Capital, Inc., (“Orchid” or the “Company”), was incorporated in Maryland on August 17, 2010 for the purpose of creating and managing a leveraged investment portfolio consisting of residential mortgage-backed securities (“RMBS”). From incorporation to February 20, 2013 Orchid was a wholly owned subsidiary of Bimini Capital Management, Inc. (“Bimini”). Orchid began operations on November 24, 2010 (the date of commencement of operations). From incorporation through November 24, 2010, Orchid’s only activity was the issuance of common stock to Bimini. | |
On February 20, 2013, Orchid completed the initial public offering (“IPO”) of its common stock in which it sold approximately 2.4 million shares of its common stock and raised gross proceeds of $35.4 million. | |
Orchid completed a secondary offering of 1,800,000 common shares on January 23, 2014. The underwriters exercised their overallotment option in full for an additional 270,000 shares on January 29, 2014. The net proceeds to Orchid were approximately $24.2 million which were invested in Agency RMBS securities on a leveraged basis. | |
Basis of Presentation and Use of Estimates | |
The accompanying financial statements are prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The significant estimates affecting the accompanying financial statements are the fair values of RMBS and Eurodollar futures contracts. | |
Statement of Comprehensive Income (Loss) | |
In accordance with the Financial Accounting Standards Board’s Accounting Standards Codification (“FASB ASC”) Topic 220, Comprehensive Income, a statement of comprehensive income has not been included as the Company has no items of other comprehensive income. Comprehensive income (loss) is the same as net income (loss) for the periods presented. | |
Cash and Cash Equivalents and Restricted Cash | |
Cash and cash equivalents include cash on deposit with financial institutions and highly liquid investments with original maturities of three months or less. Restricted cash, of approximately $2,446,000 at December 31, 2013, represents cash held by a broker as margin on Eurodollar futures contracts. Restricted cash, totaling approximately $449,000 at December 31, 2012, represents cash held on deposit as collateral with repurchase agreement counterparties. | |
The Company maintains cash balances at three banks, and, at times, balances may exceed federally insured limits. The Company has not experienced any losses related to these balances. All non-interest bearing cash balances were fully insured at December 31, 2012 due to a temporary federal program in effect from December 31, 2010 through December 31, 2012. Under the program, there was no limit to the amount of insurance for eligible accounts. Beginning January 1, 2013, insurance reverted to $250,000 per depositor at each financial institution. At December 31, 2013, the Company’s cash deposits exceeded federally insured limits by approximately $7.4 million. Restricted cash balances are uninsured, but are held in separate customer accounts that are segregated from the general funds of the counterparty. The Company believes that it is not exposed to any significant credit risk on cash and cash equivalents or restricted cash balances. | |
Mortgage-Backed Securities | |
The Company invests primarily in mortgage pass-through (“PT”) certificates, collateralized mortgage obligations, and interest only (“IO”) securities and inverse interest only (“IIO”) securities representing interest in or obligations backed by pools of mortgage-backed loans (collectively, “RMBS”). These investments meet the requirements to be classified as available for sale under ASC 320-10-25, Debt and Equity Securities (which requires the securities to be carried at fair value on the balance sheet with changes in fair value charged to other comprehensive income, a component of stockholders’ equity). However, the Company has elected to account for its investment in RMBS under the fair value option. Electing the fair value option allows the Company to record changes in fair value in the statement of operations, which, in management’s view, more appropriately reflects the results of our operations for a particular reporting period and is consistent with the underlying economics and how the portfolio is managed. | |
The Company records RMBS transactions on the trade date. Security purchases that have not settled as of the balance sheet date are included in the RMBS balance with an offsetting liability recorded, whereas securities sold that have not settled as of the balance sheet date are removed from the RMBS balance with an offsetting receivable recorded. | |
The fair value of the Company’s investments in RMBS is governed by FASB ASC 820, Fair Value Measurement. The definition of fair value in FASB ASC 820 focuses on the price that would be received to sell the asset or paid to transfer the liability in an orderly transaction between market participants at the measurement date. The fair value measurement assumes that the transaction to sell the asset or transfer the liability either occurs in the principal market for the asset or liability, or in the absence of a principal market, occurs in the most advantageous market for the asset or liability. Estimated fair values for RMBS are based on the average of third-party broker quotes received and/or independent pricing sources when available. | |
Income on PT RMBS securities is based on the stated interest rate of the security. Premiums or discounts present at the date of purchase are not amortized. For IO securities, the income is accrued based on the carrying value and the effective yield. The difference between income accrued and the interest received on the security is characterized as a return of investment and serves to reduce the asset’s carrying value. At each reporting date, the effective yield is adjusted prospectively from the reporting period based on the new estimate of prepayments and the contractual terms of the security. For IIO securities, effective yield and income recognition calculations also take into account the index value applicable to the security. Changes in fair value of RMBS during each reporting period are recorded in earnings and reported as unrealized gains or losses on mortgage-backed securities in the accompanying statements of operations. | |
Derivative Financial Instruments | |
The Company has entered into Eurodollar futures contracts to manage interest rate risk, facilitate asset/liability strategies and manage other exposures, and it may continue to do so in the future. The Company has elected to not treat any of its derivative financial instruments as hedges. FASB ASC Topic 815, Derivatives and Hedging, requires that all derivative instruments be carried at fair value. Changes in fair value are recorded in earnings for each period. | |
Financial Instruments | |
FASB ASC 825, Financial Instruments, requires disclosure of the fair value of financial instruments for which it is practicable to estimate that value, either in the body of the financial statements or in the accompanying notes. RMBS and Eurodollar futures contracts are accounted for at fair value in the balance sheet. The methods and assumptions used to estimate fair value for these instruments are presented in Note 10 of the financial statements. | |
The estimated fair value of cash and cash equivalents, restricted cash, accrued interest receivable, prepaid expenses and other assets, due from/to Bimini Capital Management, Inc., repurchase agreements, accrued interest payable, accounts payable, accrued expenses and others generally approximates their carrying values as of December 31, 2013 and 2012 due to the short-term nature of these financial instruments. | |
Repurchase Agreements | |
The Company finances the acquisition of the majority of its PT RMBS through the use of repurchase agreements under master repurchase agreements. Pursuant to ASC Topic 860, Transfers and Servicing, the Company accounts for repurchase transactions as collateralized financing transactions, which are carried at their contractual amounts, including accrued interest, as specified in the respective agreements. | |
Manager Compensation | |
The Company is externally managed by Bimini Advisors, LLC, a Maryland limited liability company and wholly-owned subsidiary of Bimini (“the Manager” or “Bimini Advisors”). The Company’s management agreement with the Manager provides for the payment to the Manager of a management fee and reimbursement of certain operating expenses, which are accrued and expensed during the period for which they are earned or incurred. Refer to Note 11 for the terms of the management agreement. | |
Earnings Per Share | |
The Company follows the provisions of FASB ASC 260, Earnings Per Share. Basic earnings per share (“EPS”) is calculated as net income or loss attributable to common stockholders divided by the weighted average number of shares of common stock outstanding or subscribed during the period. Diluted EPS is calculated using the “if converted” method for common stock equivalents, if any. However, the common stock equivalents are not included in computing diluted EPS if the result is anti-dilutive. | |
Income Taxes | |
Bimini has elected to be taxed as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”). Until the closing of its IPO on February 20, 2013, Orchid was a “qualified REIT subsidiary” of Bimini under the Code. Beginning with its short tax period commencing on February 20, 2013 and ended December 31, 2013, Orchid will elect and intends to qualify to be taxed as a REIT. REITs are generally not subject to federal income tax on their REIT taxable income provided that they distribute to their stockholders at least 90% of their REIT taxable income on an annual basis. In addition, a REIT must meet other provisions of the Code to retain its tax status. | |
Orchid measures, recognizes and presents its uncertain tax positions in accordance with FASB ASC 740, Income Taxes. Under that guidance, Orchid assesses the likelihood, based on their technical merit, that tax positions will be sustained upon examination based on the facts, circumstances and information available at the end of each period. All of Orchid’s tax positions are categorized as highly certain. There is no accrual for any tax, interest or penalties related to Orchid’s tax position assessment. The measurement of uncertain tax positions is adjusted when new information is available, or when an event occurs that requires a change. | |
Recent Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This new standard requires the netting of unrecognized tax benefits against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions. Under the new standard, unrecognized tax benefits will be netted against all available same-jurisdiction loss or other tax carryforwards that would be utilized, rather than only against carryforwards that are created by the unrecognized tax benefits. The ASU is effective beginning January 1, 2014 on either a prospective or retrospective basis. The guidance represents a change in financial statement presentation only and the Company does not expect that this ASU will have a material impact on its financial results. | |
In June 2013, the FASB issued ASU 2013-08, Financial Services – Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements. The amendments in this Update modify the guidance for determining whether an entity is an investment company, update the measurement requirements for noncontrolling interests in other investment companies and require additional disclosures for investment companies under US GAAP. The amendments in the Update develop a two-tiered approach for the assessment of whether an entity is an investment company which requires an entity to possess certain fundamental characteristics while allowing judgment in assessing other typical characteristics. The amendments in this Update also revise the measurement guidance in Topic 946 such that investment companies must measure noncontrolling ownership interests in other investment companies at fair value, rather than applying the equity method of accounting to such interests. The new guidance is effective for an entity’s interim and annual reporting periods in fiscal years that begin after December 15, 2013. Earlier application is prohibited. The Company does not expect that this ASU will have a material impact on its financial statements. | |
In February 2013, the FASB issued ASU 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date ("ASU 2013-04"). The objective of the amendments in this update is to provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, except for obligations addressed within existing GAAP. The amendments in ASU 2013-04 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013, and should be retrospectively applied to all prior periods presented for those obligations resulting from joint and several liability arrangements within the ASU's scope that exist at the beginning of an entity's fiscal year of adoption. Early adoption is permitted. The Company does not expect that this ASU will have a material impact on its financial statements. |
Mortgage_Backed_Securities
Mortgage Backed Securities | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Mortgage Backed Securities [Abstract] | ' | |||||
Mortgage-Backed Securities | ' | |||||
NOTE 2. MORTGAGE-BACKED SECURITIES | ||||||
The following table presents the Company’s RMBS portfolio as of December 31, 2013 and 2012: | ||||||
(in thousands) | ||||||
2013 | 2012 | |||||
Pass-Through RMBS Certificates: | ||||||
Hybrid Adjustable-rate Mortgages | $ | 76,118 | $ | 59,485 | ||
Adjustable-rate Mortgages | 5,334 | 6,531 | ||||
Fixed-rate Mortgages | 245,523 | 43,589 | ||||
Total Pass-Through Certificates | 326,975 | 109,605 | ||||
Structured RMBS Certificates: | ||||||
Interest-Only Securities | 19,206 | 2,884 | ||||
Inverse Interest-Only Securities | 5,042 | 2,891 | ||||
Total Structured RMBS Certificates | 24,248 | 5,775 | ||||
Total | $ | 351,223 | $ | 115,380 | ||
The following table summarizes the Company’s RMBS portfolio as of December 31, 2013 and 2012, according to the contractual maturities of the securities in the portfolio. Actual maturities of RMBS investments are generally shorter than stated contractual maturities and are affected by the contractual lives of the underlying mortgages, periodic payments of principal, and prepayments of principal | ||||||
(in thousands) | ||||||
2013 | 2012 | |||||
Greater than five years and less than ten years | $ | 1,521 | $ | 12,980 | ||
Greater than or equal to ten years | 349,702 | 102,400 | ||||
Total | $ | 351,223 | $ | 115,380 |
Repurchase_Agreements
Repurchase Agreements | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Disclosure of Repurchase Agreements [Abstract] | ' | |||||||||||
Repurchase Agreements | ' | |||||||||||
NOTE 3. REPURCHASE AGREEMENTS | ||||||||||||
As of December 31, 2013, the Company had outstanding repurchase obligations of approximately $318.6 million with a net weighted average borrowing rate of 0.39%. These agreements were collateralized by RMBS with a fair value, including accrued interest, of approximately $337.0 million. As of December 31, 2012, the Company had outstanding repurchase obligations of approximately $103.9 million with a net weighted average borrowing rate of 0.49%. These agreements were collateralized by RMBS with a fair value, including accrued interest, of approximately $109.9 million, and cash pledged to the counterparties of approximately $0.4 million. | ||||||||||||
As of December 31, 2013 and 2012, the Company’s repurchase agreements had remaining maturities as summarized below: | ||||||||||||
(in thousands) | ||||||||||||
OVERNIGHT | BETWEEN 2 | BETWEEN 31 | GREATER | |||||||||
(1 DAY OR | AND | AND | THAN | |||||||||
LESS) | 30 DAYS | 90 DAYS | 90 DAYS | TOTAL | ||||||||
31-Dec-13 | ||||||||||||
Fair market value of securities pledged, including | ||||||||||||
accrued interest receivable | $ | - | $ | 326,348 | $ | 10,650 | $ | - | $ | 336,998 | ||
Repurchase agreement liabilities associated with | ||||||||||||
these securities | $ | - | $ | 308,402 | $ | 10,155 | $ | - | $ | 318,557 | ||
Net weighted average borrowing rate | - | 0.39% | 0.37% | 0.39% | ||||||||
31-Dec-12 | ||||||||||||
Fair market value of securities pledged, including | ||||||||||||
accrued interest receivable | $ | - | $ | 109,863 | $ | - | $ | - | $ | 109,863 | ||
Repurchase agreement liabilities associated with | ||||||||||||
these securities | $ | - | $ | 103,941 | $ | - | $ | - | $ | 103,941 | ||
Net weighted average borrowing rate | - | 0.49% | - | - | 0.49% | |||||||
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. At December 31, 2013, the Company had a maximum amount at risk (the difference between the amount loaned to the Company, including interest payable, and the fair value of securities and cash pledged, including accrued interest on such securities) of approximately $18.3 million. Summary information regarding the Company’s amounts at risk with individual counterparties greater than 10% of the Company’s equity at December 31, 2013 and December 31, 2012 is as follows: | ||||||||||||
(in thousands) | ||||||||||||
Weighted | ||||||||||||
Average | ||||||||||||
Amount | Maturity | |||||||||||
Repurchase Agreement Counterparties | at Risk | (in Days) | ||||||||||
31-Dec-13 | ||||||||||||
Citigroup Global Markets, Inc. | $ | 5,487 | 11 | |||||||||
31-Dec-12 | ||||||||||||
Citigroup Global Markets, Inc. | $ | 3,714 | 18 | |||||||||
South Street Securities, LLC | 1,802 | 7 |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Derivative Financial Instruments [Abstract] | ' | |||||||
Derivative Financial Instruments | ' | |||||||
NOTE 4. DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||
In connection with its interest rate risk management strategy, the Company economically hedges a portion of the cost of its repurchase agreement funding by entering into derivative financial instrument contracts. The Company has not elected hedging treatment under GAAP, and as such all gains or losses (realized and unrealized) on these instruments are reflected in earnings for all periods presented. | ||||||||
As of December 31, 2013, such instruments were comprised entirely of Eurodollar futures contracts. Eurodollar futures are cash settled futures contracts on an interest rate, with gains or losses credited or charged to the Company’s account on a daily basis and reflected in earnings as they occur. A minimum balance, or “margin”, is required to be maintained in the account on a daily basis. This margin represents the collateral the Company has posted for its open positions and is recorded on the balance sheet as part of restricted cash. The Company is exposed to the changes in value of the futures by the amount of margin held by the broker. | ||||||||
The table below presents information related to the Company’s Eurodollar futures positions at December 31, 2013. As of December 31, 2012, the Company had no outstanding futures positions. | ||||||||
(in thousands) | ||||||||
Average | ||||||||
Weighted | Contract | |||||||
Average | Notional | Open | ||||||
Expiration Year | LIBOR Rate | Amount | Equity(1) | |||||
2014 | 0.40% | 262,500 | -189 | |||||
2015 | 0.80% | 275,000 | -146 | |||||
2016 | 1.90% | 250,000 | 1,367 | |||||
2017 | 3.03% | 250,000 | 2,291 | |||||
2018 | 3.77% | 250,000 | 1,575 | |||||
2.02% | $ | 4,898 | ||||||
Cash posted as collateral, included in restricted cash | $ | 2,446 | ||||||
Open equity represents the cumulative gains (losses) recorded on open futures positions. | ||||||||
The table below presents the effect of the Company’s derivative financial instruments on the statements of operations for the years ended December 31, 2013 and 2012. | ||||||||
(in thousands) | ||||||||
2013 | 2012 | |||||||
Eurodollar futures contracts (short positions) | $ | 4,828 | $ | -40 |
Capital_Stock
Capital Stock | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Capital Stock [Abstract] | ' | ||||||
Capital Stock | ' | ||||||
NOTE 5. CAPITAL STOCK | |||||||
At December 31, 2012, the Company had the authority to issue 1,000,000 shares of $0.01 par value common stock. In connection with the Company’s IPO in February 2013, the Company’s charter was amended to increase the authorized capital stock to 600,000,000 shares, of which (i) 500,000,000 shares are designated as common stock and (ii) 100,000,000 shares are designated as preferred stock, each with a par value of $0.01 per share. Holders of shares of the common stock generally have no preference, conversion, exchange, sinking fund, redemption or appraisal rights and have no preemptive rights to subscribe for any securities of the Company. Subject to the provisions of our charter regarding restrictions on ownership and transfer of our stock, all holders of shares of the common stock will have equal liquidation and other rights. | |||||||
Our charter authorizes our Board of Directors, without stockholder approval, to reclassify any unissued shares of our common stock into other classes or series of stock and to establish the number of shares in each class or series and to set the preferences, conversion or other rights, voting powers (including voting rights exclusive to such class or series), restrictions (including, without limitation, restrictions on transferability), limitations as to dividends or other distributions, qualifications and terms and conditions of redemption for each such class or series. | |||||||
Our charter authorizes our Board of Directors, without stockholder approval, to classify any unissued shares of preferred stock and to reclassify any previously classified but unissued shares of any class or series of preferred stock. Prior to issuance of shares of each class or series, our Board of Directors is required by Maryland law and our charter to set the preferences, conversion or other rights, voting powers (including voting rights exclusive to such class or series), restrictions (including, without limitation, restrictions on transferability), limitations as to dividends or other distributions, qualifications and terms and conditions of redemption for each such class or series. Thus, our Board of Directors could authorize the issuance of shares of preferred stock that have priority over our common stock with respect to dividends or rights upon liquidation or with terms and conditions which could have the effect of delaying, deferring or preventing a transaction or a change in control of the Company that might involve a premium price for holders of our common stock or otherwise be in their best interests. No shares of preferred stock have been issued, therefore none are outstanding. | |||||||
Restrictions on Ownership and Transfer | |||||||
In order to qualify as a REIT under the Code for each taxable year beginning after December 31, 2013, our shares of stock must be beneficially owned by 100 or more persons during at least 335 days of a taxable year of 12 months or during a proportionate part of a shorter taxable year. Also, for our taxable years beginning after December 31, 2013, no more than 50% of the value of our outstanding shares of capital stock may be owned, directly or constructively, by five or fewer individuals (as defined in the Code to include certain entities) during the second half of any calendar year. | |||||||
Because the Company’s Board of Directors believes it is at present essential for us to qualify as a REIT, our charter provides that, subject to certain exceptions, no person or entity may beneficially or constructively own, or be deemed to own by virtue of the attribution provisions of the Code, more than 9.8% in value or in number of shares, whichever is more restrictive, of the outstanding shares of any class or series of our capital stock, or the ownership limit, except that Bimini may own up to 35.0% of our common stock so long as Bimini continues to qualify as a REIT. | |||||||
The Company’s charter also prohibits any person from (i) beneficially or constructively owning or transferring shares of the Company’s capital stock if such ownership or transfer would result in the Company being “closely held” under Section 856(h) of the Code (without regard to whether the ownership interest is held during the last half of a taxable year) or otherwise cause the Company to fail to qualify as a REIT and (ii) transferring shares of the Company’s capital stock if such transfer would result in the Company’s capital stock being beneficially owned by fewer than 100 persons (determined under the principles of Section 856(a)(5) of the Code). Any person who acquires or attempts or intends to acquire beneficial or constructive ownership of shares of the Company’s stock that will or may violate any of the foregoing restrictions on transfer and ownership, or who is the intended transferee of shares of the Company’s stock which are transferred to the trust (as described below), will be required to give written notice immediately to the Company or in the case of a proposed or attempted transaction, to give at least 15 days’ prior written notice, and provide the Company with such other information as the Company may request in order to determine the effect, if any, of such transfer on the Company’s status as a REIT. The foregoing restrictions on transfer and ownership will not apply if the Company’s Board of Directors determines that it is no longer in the Company’s best interests to attempt to qualify, or to continue to qualify, as a REIT, or that compliance with the restrictions on transfer and ownership is no longer required for the Company to qualify as a REIT. | |||||||
The Company’s Board of Directors, in its sole discretion, may exempt (prospectively or retroactively) a person from certain of the limits described above and may establish or increase an excepted holder limit for such person. The person seeking an exemption must provide to the Board of Directors any such representations, covenants and undertakings as the Board of Directors may deem appropriate in order to conclude that granting the exemption and/or establishing or increasing an excepted holder limit, as the case may be, will not cause the Company to fail to qualify as a REIT. The Company’s Board of Directors may also require a ruling from the IRS or an opinion of counsel in order to determine that granting the exemption will not cause the Company to lose its qualification as a REIT. In connection with granting a waiver of the ownership limit or creating an excepted holder limit or at any other time, the Company’s Board of Directors may from time to time increase or decrease the ownership limit, subject to certain restrictions. | |||||||
Common Stock Issuances | |||||||
During July 2012, Bimini acquired 4,110 shares of common stock of the Company in satisfaction of an amount due to Bimini at June 30, 2012 of approximately $411,000 for prior management fees, overhead allocations and direct expense reimbursements. | |||||||
On February 20, 2013, Orchid completed the IPO of its common stock in which it sold 2,360,000 shares of its common stock and raised gross proceeds of $35,400,000. | |||||||
Orchid completed a secondary offering of 1,800,000 common shares on January 23, 2014 at a price of $12.50 per share. The underwriters exercised their overallotment option in full for an additional 270,000 shares on January 29, 2014. The net proceeds to Orchid were approximately $24,200,000. These shares and net proceeds are not reflected in our balance sheet at December 31, 2013. | |||||||
Stock Dividend | |||||||
On February 14, 2013, Orchid’s Board of Directors declared a stock dividend whereby 5.37 shares of common stock were issued for each share of common stock outstanding. The 827,555 shares distributed pursuant to this dividend were issued to Bimini on February 20, 2013, immediately prior to the Company’s IPO. | |||||||
Cash Dividends | |||||||
The table below presents the cash dividends declared on the Company’s common stock since its IPO. | |||||||
Declaration Date | Record Date | Payment Date | Per Share Amount | Total | |||
8-Mar-13 | 25-Mar-13 | 27-Mar-13 | $ | 0.135 | $ | 451,125 | |
10-Apr-13 | 25-Apr-13 | 30-Apr-13 | 0.135 | 451,125 | |||
9-May-13 | 28-May-13 | 31-May-13 | 0.135 | 451,125 | |||
10-Jun-13 | 25-Jun-13 | 28-Jun-13 | 0.135 | 451,125 | |||
9-Jul-13 | 25-Jul-13 | 31-Jul-13 | 0.135 | 451,125 | |||
12-Aug-13 | 26-Aug-13 | 30-Aug-13 | 0.135 | 451,125 | |||
10-Sep-13 | 25-Sep-13 | 30-Sep-13 | 0.135 | 451,125 | |||
10-Oct-13 | 25-Oct-13 | 31-Oct-13 | 0.135 | 451,125 | |||
12-Nov-13 | 25-Nov-13 | 27-Nov-13 | 0.135 | 451,125 | |||
11-Dec-13 | 26-Dec-13 | 30-Dec-13 | 0.18 | 601,500 | |||
(1)January 9, 2014 | 27-Jan-14 | 31-Jan-14 | 0.18 | 925,500 | |||
(1)February 11, 2014 | 25-Feb-14 | 28-Feb-14 | 0.18 | 974,100 | |||
The effect of the dividends declared during 2014 is not reflected in the Company’s financial statements as of December 31, 2013. |
Stock_Incentive_Plans
Stock Incentive Plans | 12 Months Ended |
Dec. 31, 2013 | |
Employee Benefits And Share Based Compensation [Abstract] | ' |
Stock incentive Plans | ' |
NOTE 6. STOCK INCENTIVE PLAN | |
In October 2012, the Company’s Board of Directors adopted and Bimini, then the Company’s sole stockholder, approved, the Orchid Island Capital, Inc. 2012 Equity Incentive Plan (the “Incentive Plan”) to recruit and retain employees, directors and other service providers, including employees of the Manager and other affiliates. The Incentive Plan provides for the award of stock options, stock appreciation rights, stock award, performance units, other equity-based awards (and dividend equivalents with respect to awards of performance units and other equity-based awards) and incentive awards. The Incentive Plan is administered by the Compensation Committee of the Company’s Board of Directors except that the Company’s full Board of Directors will administer awards made to directors who are not employees of the Company or its affiliates. The Incentive Plan provides for awards of up to an aggregate of 10% of the issued and outstanding shares of our common stock (on a fully diluted basis) at the time of the awards, subject to a maximum aggregate 4,000,000 shares of the Company’s common stock that may be issued under the Incentive Plan. To date, no awards have been made under the Incentive Plan. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Commitments And Contingencies | ' |
NOTE 7. COMMITMENTS AND CONTINGENCIES | |
From time to time, the Company may become involved in various claims and legal actions arising in the ordinary course of business. Management is not aware of any reported or unreported contingencies at December 31, 2013. |
Income_Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
NOTE 8. INCOME TAXES | |
As discussed in Note 1, the Company will elect and intends to qualify to be taxed as a REIT. As a REIT, the Company will generally not be subject to federal income tax on its REIT taxable income to the extent that it distributes its REIT taxable income to its shareholders and satisfies the ongoing REIT requirements, including meeting certain asset, income and stock ownership tests. A REIT must generally distribute at least 90% of its REIT taxable income to its shareholders, of which 85% generally must be distributed within the taxable year, in order to avoid the imposition of an excise tax. The remaining balance may be distributed up to the end of the following taxable year, provided the REIT elects to treat such amount as a prior year distribution and meets certain other requirements. It is generally the Company’s policy to distribute to its shareholders all of the Company’s REIT taxable income. | |
REIT taxable income (loss) is computed in accordance with the Code, which is different than the Company’s financial statement net income (loss) computed in accordance with GAAP. All of the Company’s estimated REIT taxable income or loss prior to the completion of the Company’s IPO is included in the consolidated tax return of Bimini. | |
The Company has elected to treat approximately $0.1 million of the January 2014 dividend as having been paid with respect to 2013 in order to reduce REIT taxable income for 2013 to zero. Accordingly, no income tax provision was recorded for 2013. | |
As of December 31, 2013, Orchid had approximately $5.2 million of capital loss carryforwards that can be utilized to offset future capital gains. | |
In general, common stock dividends declared by the Company will be considered ordinary income to stockholders for income tax purposes. From time to time, a portion of the Company’s dividends may be characterized as capital gains or return of capital. For the tax period ended December 31, 2013, all income distributed in the form of dividends declared is considered characterized as ordinary income. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Earnings Per Share [Abstract] | ' | ||||||
Earnings Per Share | ' | ||||||
NOTE 9. EARNINGS PER SHARE (EPS) | |||||||
The table below reconciles the numerator and denominator of EPS for the years ended December 31, 2013 and 2012. | |||||||
(in thousands, except per-share information) | |||||||
2013 | 2012 | ||||||
Basic and diluted EPS per common share: | |||||||
Numerator for basic and diluted EPS per common share: | |||||||
Net (loss) income - Basic and diluted | $ | -698 | $ | 534 | |||
Weighted average common shares: | |||||||
Common shares outstanding at the balance sheet date | 3,342 | 154 | |||||
Common shares to be distributed as a stock dividend | - | 828 | |||||
Effect of weighting | -330 | - | |||||
Weighted average shares-basic and diluted | 3,012 | 982 | |||||
(Loss) income per common share: | |||||||
Basic and diluted | $ | -0.23 | $ | 0.54 | |||
On February 14, 2013, Orchid’s Board of Directors declared a stock dividend whereby 5.37 shares of common stock were issued for each share of common stock outstanding. The 827,555 shares distributed as the dividend were issued to Bimini on February 20, 2013, immediately prior to Orchid’s IPO. For the year ended December 31, 2012, the 981,665 common shares, which includes the 154,110 shares of common stock outstanding at December 31, 2012 and the 827,555 shares distributed as a stock dividend, is used for the EPS computation, as Bimini has been the sole stockholder during the entire period |
Fair_Value
Fair Value | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||
Fair Value | ' | ||||||||
NOTE 10. FAIR VALUE | |||||||||
Authoritative accounting literature establishes a framework for using fair value to measure assets and liabilities and defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) as opposed to the price that would be paid to acquire the asset or received to assume the liability (an entry price). A fair value measure should reflect the assumptions that market participants would use in pricing the asset or liability, including the assumptions about the risk inherent in a particular valuation technique, the effect of a restriction on the sale or use of an asset and the risk of non-performance. Required disclosures include stratification of balance sheet amounts measured at fair value based on inputs the Company uses to derive fair value measurements. These stratifications are: | |||||||||
Level 1 valuations, where the valuation is based on quoted market prices for identical assets or liabilities traded in active markets (which include exchanges and over-the-counter markets with sufficient volume), | |||||||||
Level 2 valuations, where the valuation is based on quoted market prices for similar instruments traded in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market, and | |||||||||
Level 3 valuations, where the valuation is generated from model-based techniques that use significant assumptions not observable in the market, but observable based on Company-specific data. These unobservable assumptions reflect the Company’s own estimates for assumptions that market participants would use in pricing the asset or liability. Valuation techniques typically include option pricing models, discounted cash flow models and similar techniques, but may also include the use of market prices of assets or liabilities that are not directly comparable to the subject asset or liability. | |||||||||
The Company’s RMBS are valued using Level 2 valuations, and such valuations currently are determined by the Company based on the average of third-party broker quotes and/or by independent pricing sources when available. Because the price estimates may vary, the Company must make certain judgments and assumptions about the appropriate price to use to calculate the fair values. Alternatively, the Company could opt to have the value of all of our positions in RMBS determined by either an independent third-party or do so internally. | |||||||||
RMBS and Eurodollar futures contracts were recorded at fair value on a recurring basis during the years ended December 31, 2013 and 2012. When determining fair value measurements, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset. When possible, the Company looks to active and observable markets to price identical assets. When identical assets are not traded in active markets, the Company looks to market observable data for similar assets. The following table presents financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 and December 31, 2012: | |||||||||
(in thousands) | |||||||||
Quoted Prices | |||||||||
in Active | Significant | ||||||||
Markets for | Other | Significant | |||||||
Identical | Observable | Unobservable | |||||||
Fair Value | Assets | Inputs | Inputs | ||||||
Measurements | (Level 1) | (Level 2) | (Level 3) | ||||||
31-Dec-13 | |||||||||
Mortgage-backed securities | $ | 351,223 | $ | - | $ | 351,223 | $ | - | |
Eurodollar futures contracts | 2,446 | 2,446 | - | - | |||||
31-Dec-12 | |||||||||
Mortgage-backed securities | $ | 115,380 | $ | - | $ | 115,380 | $ | - | |
During the years ended December 31, 2013 and 2012, there were no transfers of financial assets or liabilities between levels 1, 2 or 3. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
NOTE 11. RELATED PARTY TRANSACTIONS | |
Management Agreement | |
The Company entered into a management agreement with Bimini, which provided for an initial term through December 31, 2011 with automatic one-year extension options. The agreement was extended under the option to December 31, 2013, but was terminated at the completion of the Company’s IPO on February 20, 2013. At the completion of the IPO, the Company entered into a management agreement with the Manager, which provides for an initial term through February 20, 2016 with automatic one-year extensions and is subject to certain termination rights. Under the terms of the management agreement, Bimini Advisors will be responsible for administering the business activities and day-to-day operations of the Company. Bimini Advisors will receive a monthly management fee in the amount of: | |
One-twelfth of 1.5% of the first $250 million of the Company’s equity, as defined in the management agreement, | |
One-twelfth of 1.25% of the Company’s equity that is greater than $250 million and less than or equal to $500 million, and | |
One-twelfth of 1.00% of the Company’s equity that is greater than $500 million. | |
The Company is obligated to reimburse Bimini Advisors for any direct expenses incurred on its behalf. In addition, once the Company’s Equity, as defined in the management agreement, exceeds $100 million for the first time, Bimini Advisors will begin allocating to the Company, it’s pro rata portion of certain overhead costs as defined in the management agreement. Should the Company terminate the management agreement without cause, it shall pay to Bimini Advisors a termination fee equal to three times the average annual management fee, as defined in the management agreement, before or on the last day of the initial term or automatic renewal term. | |
The Company was obligated to reimburse Bimini for its costs incurred under the original management agreement. In addition, the Company was required to pay Bimini a monthly fee of $7,200, which represents an allocation of overhead expenses for items that include, but are not limited to, occupancy costs, insurance and administrative expenses. These expenses were allocated based on the ratio of the Company’s assets and Bimini’s consolidated assets. Total expenses recorded during the years ended December 31, 2013 and 2012 for the management fee and costs incurred was approximately $679,000 and $335,000, respectively. | |
At December 31, 2013 and December 31, 2012, the net amount due (to) from affiliates was approximately ($82,000) and $45,000, respectively. | |
Payment of Certain Offering Expenses | |
Bimini Advisors has paid, or has reimbursed Orchid, for all offering expenses in connection with the Company’s IPO. During the year ended December 31, 2012, these expenses were approximately $0.2 million. During the year ended December 31, 2013, Bimini Advisors paid additional expenses related to this offering of approximately $3.0 million. In addition, during the year ended December 31, 2012, Bimini Advisors paid certain expenses totaling approximately $0.8 million on behalf of the Company associated with a failed merger attempt. The Company has no obligation or intent to reimburse Bimini Advisors, either directly or indirectly, for the offering costs or attempted merger costs, therefore they are not included in the Company's financial statements. | |
Board Memberships | |
John B. Van Heuvelen, one of our independent director nominees, owns shares of common stock of Bimini. Robert Cauley, our Chief Executive Officer and Chairman of our Board of Directors, also serves as Chief Executive Officer and Chairman of the Board of Directors of Bimini and owns shares of common stock of Bimini. Hunter Haas, our Chief Financial Officer, Chief Investment Officer, Secretary and a member of our Board of Directors, also serves as the Chief Financial Officer, Chief Investment Officer and Treasurer of Bimini and owns shares of common stock of Bimini. | |
Consulting Agreement | |
In September 2010, the Company entered into a consulting agreement with W Coleman Bitting, who became one of the Company’s independent directors in February 2013. The terms of the consulting agreement provided that Mr. Bitting would advise the Company with respect to financing alternatives, business strategies and related matters as requested during the term of the agreement. In exchange for his services, the consulting agreement provided that the Company pay Mr. Bitting an hourly fee of $150 and reimburse him for all out-of-pocket expenses reasonably incurred in the performance of his services. During years ended December 31, 2013 and 2012, the Company paid Mr. Bitting approximately $3,800 and $30,400, respectively, under this agreement. Mr. Bitting’s consulting agreement was terminated upon completion of the Company’s IPO. The total compensation Mr. Bitting received under the consulting agreement was approximately $115,000. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation and Use of Estimates | |
The accompanying financial statements are prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The significant estimates affecting the accompanying financial statements are the fair values of RMBS and Eurodollar futures contracts. | |
Statement of Comprehensive Income | ' |
Statement of Comprehensive Income (Loss) | |
In accordance with the Financial Accounting Standards Board’s Accounting Standards Codification (“FASB ASC”) Topic 220, Comprehensive Income, a statement of comprehensive income has not been included as the Company has no items of other comprehensive income. Comprehensive income (loss) is the same as net income (loss) for the periods presented. | |
Cash and Cash Equivalents and Restricted Cash | ' |
Cash and Cash Equivalents and Restricted Cash | |
Cash and cash equivalents include cash on deposit with financial institutions and highly liquid investments with original maturities of three months or less. Restricted cash, of approximately $2,446,000 at December 31, 2013, represents cash held by a broker as margin on Eurodollar futures contracts. Restricted cash, totaling approximately $449,000 at December 31, 2012, represents cash held on deposit as collateral with repurchase agreement counterparties. | |
The Company maintains cash balances at three banks, and, at times, balances may exceed federally insured limits. The Company has not experienced any losses related to these balances. All non-interest bearing cash balances were fully insured at December 31, 2012 due to a temporary federal program in effect from December 31, 2010 through December 31, 2012. Under the program, there was no limit to the amount of insurance for eligible accounts. Beginning January 1, 2013, insurance reverted to $250,000 per depositor at each financial institution. At December 31, 2013, the Company’s cash deposits exceeded federally insured limits by approximately $7.4 million. Restricted cash balances are uninsured, but are held in separate customer accounts that are segregated from the general funds of the counterparty. The Company believes that it is not exposed to any significant credit risk on cash and cash equivalents or restricted cash balances. | |
Mortgage-Backed Securities | ' |
Mortgage-Backed Securities | |
The Company invests primarily in mortgage pass-through (“PT”) certificates, collateralized mortgage obligations, and interest only (“IO”) securities and inverse interest only (“IIO”) securities representing interest in or obligations backed by pools of mortgage-backed loans (collectively, “RMBS”). These investments meet the requirements to be classified as available for sale under ASC 320-10-25, Debt and Equity Securities (which requires the securities to be carried at fair value on the balance sheet with changes in fair value charged to other comprehensive income, a component of stockholders’ equity). However, the Company has elected to account for its investment in RMBS under the fair value option. Electing the fair value option allows the Company to record changes in fair value in the statement of operations, which, in management’s view, more appropriately reflects the results of our operations for a particular reporting period and is consistent with the underlying economics and how the portfolio is managed. | |
The Company records RMBS transactions on the trade date. Security purchases that have not settled as of the balance sheet date are included in the RMBS balance with an offsetting liability recorded, whereas securities sold that have not settled as of the balance sheet date are removed from the RMBS balance with an offsetting receivable recorded. | |
The fair value of the Company’s investments in RMBS is governed by FASB ASC 820, Fair Value Measurement. The definition of fair value in FASB ASC 820 focuses on the price that would be received to sell the asset or paid to transfer the liability in an orderly transaction between market participants at the measurement date. The fair value measurement assumes that the transaction to sell the asset or transfer the liability either occurs in the principal market for the asset or liability, or in the absence of a principal market, occurs in the most advantageous market for the asset or liability. Estimated fair values for RMBS are based on the average of third-party broker quotes received and/or independent pricing sources when available. | |
Income on PT RMBS securities is based on the stated interest rate of the security. Premiums or discounts present at the date of purchase are not amortized. For IO securities, the income is accrued based on the carrying value and the effective yield. The difference between income accrued and the interest received on the security is characterized as a return of investment and serves to reduce the asset’s carrying value. At each reporting date, the effective yield is adjusted prospectively from the reporting period based on the new estimate of prepayments and the contractual terms of the security. For IIO securities, effective yield and income recognition calculations also take into account the index value applicable to the security. Changes in fair value of RMBS during each reporting period are recorded in earnings and reported as unrealized gains or losses on mortgage-backed securities in the accompanying statements of operations. | |
Derivative Financial Instruments | ' |
Derivative Financial Instruments | |
The Company has entered into Eurodollar futures contracts to manage interest rate risk, facilitate asset/liability strategies and manage other exposures, and it may continue to do so in the future. The Company has elected to not treat any of its derivative financial instruments as hedges. FASB ASC Topic 815, Derivatives and Hedging, requires that all derivative instruments be carried at fair value. Changes in fair value are recorded in earnings for each period. | |
Financial Instruments | ' |
Financial Instruments | |
FASB ASC 825, Financial Instruments, requires disclosure of the fair value of financial instruments for which it is practicable to estimate that value, either in the body of the financial statements or in the accompanying notes. RMBS and Eurodollar futures contracts are accounted for at fair value in the balance sheet. The methods and assumptions used to estimate fair value for these instruments are presented in Note 10 of the financial statements. | |
The estimated fair value of cash and cash equivalents, restricted cash, accrued interest receivable, prepaid expenses and other assets, due from/to Bimini Capital Management, Inc., repurchase agreements, accrued interest payable, accounts payable, accrued expenses and others generally approximates their carrying values as of December 31, 2013 and 2012 due to the short-term nature of these financial instruments. | |
Repurchase Agreements | ' |
Repurchase Agreements | |
The Company finances the acquisition of the majority of its PT RMBS through the use of repurchase agreements under master repurchase agreements. Pursuant to ASC Topic 860, Transfers and Servicing, the Company accounts for repurchase transactions as collateralized financing transactions, which are carried at their contractual amounts, including accrued interest, as specified in the respective agreements. | |
Management Fees [Policy Text Block] | ' |
Manager Compensation | |
The Company is externally managed by Bimini Advisors, LLC, a Maryland limited liability company and wholly-owned subsidiary of Bimini (“the Manager” or “Bimini Advisors”). The Company’s management agreement with the Manager provides for the payment to the Manager of a management fee and reimbursement of certain operating expenses, which are accrued and expensed during the period for which they are earned or incurred. Refer to Note 11 for the terms of the management agreement. | |
Earnings Per Share | ' |
Earnings Per Share | |
The Company follows the provisions of FASB ASC 260, Earnings Per Share. Basic earnings per share (“EPS”) is calculated as net income or loss attributable to common stockholders divided by the weighted average number of shares of common stock outstanding or subscribed during the period. Diluted EPS is calculated using the “if converted” method for common stock equivalents, if any. However, the common stock equivalents are not included in computing diluted EPS if the result is anti-dilutive. | |
Income Taxes | ' |
Income Taxes | |
Bimini has elected to be taxed as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”). Until the closing of its IPO on February 20, 2013, Orchid was a “qualified REIT subsidiary” of Bimini under the Code. Beginning with its short tax period commencing on February 20, 2013 and ended December 31, 2013, Orchid will elect and intends to qualify to be taxed as a REIT. REITs are generally not subject to federal income tax on their REIT taxable income provided that they distribute to their stockholders at least 90% of their REIT taxable income on an annual basis. In addition, a REIT must meet other provisions of the Code to retain its tax status. | |
Orchid measures, recognizes and presents its uncertain tax positions in accordance with FASB ASC 740, Income Taxes. Under that guidance, Orchid assesses the likelihood, based on their technical merit, that tax positions will be sustained upon examination based on the facts, circumstances and information available at the end of each period. All of Orchid’s tax positions are categorized as highly certain. There is no accrual for any tax, interest or penalties related to Orchid’s tax position assessment. The measurement of uncertain tax positions is adjusted when new information is available, or when an event occurs that requires a change. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This new standard requires the netting of unrecognized tax benefits against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions. Under the new standard, unrecognized tax benefits will be netted against all available same-jurisdiction loss or other tax carryforwards that would be utilized, rather than only against carryforwards that are created by the unrecognized tax benefits. The ASU is effective beginning January 1, 2014 on either a prospective or retrospective basis. The guidance represents a change in financial statement presentation only and the Company does not expect that this ASU will have a material impact on its financial results. | |
In June 2013, the FASB issued ASU 2013-08, Financial Services – Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements. The amendments in this Update modify the guidance for determining whether an entity is an investment company, update the measurement requirements for noncontrolling interests in other investment companies and require additional disclosures for investment companies under US GAAP. The amendments in the Update develop a two-tiered approach for the assessment of whether an entity is an investment company which requires an entity to possess certain fundamental characteristics while allowing judgment in assessing other typical characteristics. The amendments in this Update also revise the measurement guidance in Topic 946 such that investment companies must measure noncontrolling ownership interests in other investment companies at fair value, rather than applying the equity method of accounting to such interests. The new guidance is effective for an entity’s interim and annual reporting periods in fiscal years that begin after December 15, 2013. Earlier application is prohibited. The Company does not expect that this ASU will have a material impact on its financial statements. | |
In February 2013, the FASB issued ASU 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date ("ASU 2013-04"). The objective of the amendments in this update is to provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, except for obligations addressed within existing GAAP. The amendments in ASU 2013-04 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013, and should be retrospectively applied to all prior periods presented for those obligations resulting from joint and several liability arrangements within the ASU's scope that exist at the beginning of an entity's fiscal year of adoption. Early adoption is permitted. The Company does not expect that this ASU will have a material impact on its financial statements. |
MortgageBacked_Securities_Tabl
Mortgage-Backed Securities (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Mortgage Backed Securities [Abstract] | ' | |||||
Schedule of Mortgage-Backed Securities Reconciliation | ' | |||||
The following table presents the Company’s RMBS portfolio as of December 31, 2013 and 2012: | ||||||
(in thousands) | ||||||
2013 | 2012 | |||||
Pass-Through RMBS Certificates: | ||||||
Hybrid Adjustable-rate Mortgages | $ | 76,118 | $ | 59,485 | ||
Adjustable-rate Mortgages | 5,334 | 6,531 | ||||
Fixed-rate Mortgages | 245,523 | 43,589 | ||||
Total Pass-Through Certificates | 326,975 | 109,605 | ||||
Structured RMBS Certificates: | ||||||
Interest-Only Securities | 19,206 | 2,884 | ||||
Inverse Interest-Only Securities | 5,042 | 2,891 | ||||
Total Structured RMBS Certificates | 24,248 | 5,775 | ||||
Total | $ | 351,223 | $ | 115,380 | ||
Schedule Of Mortgage-Backed Securities by Contractual Maturity | ' | |||||
The following table summarizes the Company’s RMBS portfolio as of December 31, 2013 and 2012, according to the contractual maturities of the securities in the portfolio. Actual maturities of RMBS investments are generally shorter than stated contractual maturities and are affected by the contractual lives of the underlying mortgages, periodic payments of principal, and prepayments of principal. | ||||||
(in thousands) | ||||||
2013 | 2012 | |||||
Greater than five years and less than ten years | $ | 1,521 | $ | 12,980 | ||
Greater than or equal to ten years | 349,702 | 102,400 | ||||
Total | $ | 351,223 | $ | 115,380 |
Repurchase_Agreements_Tables
Repurchase Agreements (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Disclosure of Repurchase Agreements [Abstract] | ' | |||||||||||
Schedule of Repurchase Agreements | ' | |||||||||||
As of December 31, 2013 and 2012, the Company’s repurchase agreements had remaining maturities as summarized below: | ||||||||||||
(in thousands) | ||||||||||||
OVERNIGHT | BETWEEN 2 | BETWEEN 31 | GREATER | |||||||||
(1 DAY OR | AND | AND | THAN | |||||||||
LESS) | 30 DAYS | 90 DAYS | 90 DAYS | TOTAL | ||||||||
31-Dec-13 | ||||||||||||
Fair market value of securities pledged, including | ||||||||||||
accrued interest receivable | $ | - | $ | 326,348 | $ | 10,650 | $ | - | $ | 336,998 | ||
Repurchase agreement liabilities associated with | ||||||||||||
these securities | $ | - | $ | 308,402 | $ | 10,155 | $ | - | $ | 318,557 | ||
Net weighted average borrowing rate | - | 0.39% | 0.37% | 0.39% | ||||||||
31-Dec-12 | ||||||||||||
Fair market value of securities pledged, including | ||||||||||||
accrued interest receivable | $ | - | $ | 109,863 | $ | - | $ | - | $ | 109,863 | ||
Repurchase agreement liabilities associated with | ||||||||||||
these securities | $ | - | $ | 103,941 | $ | - | $ | - | $ | 103,941 | ||
Net weighted average borrowing rate | - | 0.49% | - | - | 0.49% | |||||||
Schedule of Underlying Assets of Repurchase Agreements when Amount of Repurchase Agreements Exceeds 10 Percent of Assets | ' | |||||||||||
Summary information regarding the Company’s amounts at risk with individual counterparties greater than 10% of the Company’s equity at December 31, 2013 and December 31, 2012 is as follows: | ||||||||||||
(in thousands) | ||||||||||||
Weighted | ||||||||||||
Average | ||||||||||||
Amount | Maturity | |||||||||||
Repurchase Agreement Counterparties | at Risk | (in Days) | ||||||||||
31-Dec-13 | ||||||||||||
Citigroup Global Markets, Inc. | $ | 5,487 | 11 | |||||||||
31-Dec-12 | ||||||||||||
Citigroup Global Markets, Inc. | $ | 3,714 | 18 | |||||||||
South Street Securities, LLC | 1,802 | 7 |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Derivative Financial Instruments [Abstract] | ' | |||||||
Schedule of Eurodollar Positions | ' | |||||||
The table below presents information related to the Company’s Eurodollar futures positions at December 31, 2013. As of December 31, 2012, the Company had no outstanding futures positions. | ||||||||
(in thousands) | ||||||||
Average | ||||||||
Weighted | Contract | |||||||
Average | Notional | Open | ||||||
Expiration Year | LIBOR Rate | Amount | Equity(1) | |||||
2014 | 0.40% | 262,500 | -189 | |||||
2015 | 0.80% | 275,000 | -146 | |||||
2016 | 1.90% | 250,000 | 1,367 | |||||
2017 | 3.03% | 250,000 | 2,291 | |||||
2018 | 3.77% | 250,000 | 1,575 | |||||
2.02% | $ | 4,898 | ||||||
Cash posted as collateral, included in restricted cash | $ | 2,446 | ||||||
Open equity represents the cumulative gains (losses) recorded on open futures positions. | ||||||||
Income Statement Effect of Derivatives [Table Text Block] | ' | |||||||
The table below presents the effect of the Company’s derivative financial instruments on the statements of operations for the years ended December 31, 2013 and 2012. | ||||||||
(in thousands) | ||||||||
2013 | 2012 | |||||||
Eurodollar futures contracts (short positions) | $ | 4,828 | $ | -40 |
Capital_Stock_Tables
Capital Stock (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Capital Stock [Abstract] | ' | ||||||
Dividends | ' | ||||||
The table below presents the cash dividends declared on the Company’s common stock since its IPO. | |||||||
Declaration Date | Record Date | Payment Date | Per Share Amount | Total | |||
8-Mar-13 | 25-Mar-13 | 27-Mar-13 | $ | 0.135 | $ | 451,125 | |
10-Apr-13 | 25-Apr-13 | 30-Apr-13 | 0.135 | 451,125 | |||
9-May-13 | 28-May-13 | 31-May-13 | 0.135 | 451,125 | |||
10-Jun-13 | 25-Jun-13 | 28-Jun-13 | 0.135 | 451,125 | |||
9-Jul-13 | 25-Jul-13 | 31-Jul-13 | 0.135 | 451,125 | |||
12-Aug-13 | 26-Aug-13 | 30-Aug-13 | 0.135 | 451,125 | |||
10-Sep-13 | 25-Sep-13 | 30-Sep-13 | 0.135 | 451,125 | |||
10-Oct-13 | 25-Oct-13 | 31-Oct-13 | 0.135 | 451,125 | |||
12-Nov-13 | 25-Nov-13 | 27-Nov-13 | 0.135 | 451,125 | |||
11-Dec-13 | 26-Dec-13 | 30-Dec-13 | 0.18 | 601,500 | |||
(1)January 9, 2014 | 27-Jan-14 | 31-Jan-14 | 0.18 | 925,500 | |||
(1)February 11, 2014 | 25-Feb-14 | 28-Feb-14 | 0.18 | 974,100 | |||
The effect of the dividends declared during 2014 is not reflected in the Company’s financial statements as of December 31, 2013. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Earnings Per Share [Abstract] | ' | ||||||
Earnings Per Share | ' | ||||||
The table below reconciles the numerator and denominator of EPS for the years ended December 31, 2013 and 2012. | |||||||
(in thousands, except per-share information) | |||||||
2013 | 2012 | ||||||
Basic and diluted EPS per common share: | |||||||
Numerator for basic and diluted EPS per common share: | |||||||
Net (loss) income - Basic and diluted | $ | -698 | $ | 534 | |||
Weighted average common shares: | |||||||
Common shares outstanding at the balance sheet date | 3,342 | 154 | |||||
Common shares to be distributed as a stock dividend | - | 828 | |||||
Effect of weighting | -330 | - | |||||
Weighted average shares-basic and diluted | 3,012 | 982 | |||||
(Loss) income per common share: | |||||||
Basic and diluted | $ | -0.23 | $ | 0.54 | |||
Fair_Value_Tables
Fair Value (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||
Assets Measured at Fair Value on Recurring Basis | ' | ||||||||
The following table presents financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 and December 31, 2012: | |||||||||
(in thousands) | |||||||||
Quoted Prices | |||||||||
in Active | Significant | ||||||||
Markets for | Other | Significant | |||||||
Identical | Observable | Unobservable | |||||||
Fair Value | Assets | Inputs | Inputs | ||||||
Measurements | (Level 1) | (Level 2) | (Level 3) | ||||||
31-Dec-13 | |||||||||
Mortgage-backed securities | $ | 351,223 | $ | - | $ | 351,223 | $ | - | |
Eurodollar futures contracts | 2,446 | 2,446 | - | - | |||||
31-Dec-12 | |||||||||
Mortgage-backed securities | $ | 115,380 | $ | - | $ | 115,380 | $ | - | |
Significant_Accounting_Policie
Significant Accounting Policies (Organization) (Details) (Orchid Island Capita lInc Member [Member]) | 12 Months Ended |
Dec. 31, 2013 | |
Orchid Island Capita lInc Member [Member] | ' |
Entity Incorporation, Date of Incorporation | 17-Aug-10 |
Entity Incorporation, State Country Name | 'MD |
Operations Commenced Date | 24-Nov-10 |
Significant_Accounting_Policie1
Significant Accounting Policies - Cash and Cash Equivalents (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Accounting Policies [Abstract] | ' | ' |
Cash Held by Broker as Margin on Eurodollar Futures Contracts | $2,446,000 | $0 |
Cash Held on Deposit with Repurchase Agreement Counterparties | 0 | 449,000 |
Uninsured Cash Balances | 7,400,000 | ' |
Insurance per depositor at each financial institution | $250,000 | ' |
Significant_Accounting_Polies_
Significant Accounting Polies - Income Taxes (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Discussion of the distribution requirements for REIT compliance | 'Bimini has elected to be taxed as a real estate investment trust (bREITb) under the Internal Revenue Code of 1986, as amended (the bCodeb). Until the closing of its IPO on February 20, 2013, Orchid was a bqualified REIT subsidiaryb of Bimini under the Code. Beginning with its short tax period commencing on February 20, 2013 and ended December 31, 2013, Orchid will elect and intends to qualify to be taxed as a REIT. REITs are generally not subject to federal income tax on their REIT taxable income provided that they distribute to their stockholders at least 90% of their REIT taxable income on an annual basis. In addition, a REIT must meet other provisions of the Code to retain its tax status. |
Significant_Accounting_Policie2
Significant Accounting Policies - IPO (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Initial Offering Period | '2013-02-20 | ' |
Stock Issued During Period Shares New Issues | 2,360,000 | ' |
Proceeds From Issuance Initial Public Offering | $35,400,000 | $0 |
Significant_Accounting_Policie3
Significant Accounting Policies - Secondary Offering (Details) (USD $) | 1 Months Ended |
Jan. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Secondary Offering Period | 'January 23, 2014 |
Stock Issued During Secondary Offering | 1,800,000 |
Underwriters Overallotment Period | 'January 29, 2014 |
Underwriters Overallotment Shares | 270,000 |
Proceeds From Secondary Offering | $24,200,000 |
MortgageBacked_Securities_By_T
Mortgage-Backed Securities - By Type (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Fair Value | $351,222,512 | $115,379,574 |
Total Pass Through Certificates [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Fair Value | 326,975,000 | 109,605,000 |
Total Strucutured Certificates [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Fair Value | 24,248,000 | 5,775,000 |
Hybrid Adjustable Rate Mortgages [Member] | Total Pass Through Certificates [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Fair Value | 76,118,000 | 59,485,000 |
Adjustable-rate Mortgages [Member] | Total Pass Through Certificates [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Fair Value | 5,334,000 | 6,531,000 |
Fixed-rate Mortgages [Member] | Total Pass Through Certificates [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Fair Value | 245,523,000 | 43,589,000 |
Interest Only Securities [Member] | Total Strucutured Certificates [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Fair Value | 19,206,000 | 2,884,000 |
Inverse Interest Only Securities [Member] | Total Strucutured Certificates [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Fair Value | $5,042,000 | $2,891,000 |
MortgageBacked_Securities_By_M
Mortgage-Backed Securities - By Maturity (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Mortgage Backed Securities [Abstract] | ' | ' |
Greater than five years and less than ten years | $1,521,000 | $12,980,000 |
Greater than or equal to ten years | 349,702,000 | 102,400,000 |
Total mortgage-backed securities | $351,222,512 | $115,379,574 |
Repurchase_Agreements_Narrativ
Repurchase Agreements - Narrative (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure of Repurchase Agreements [Abstract] | ' | ' |
Repurchase agreements | $318,557,054 | $103,941,174 |
Fair Value of securities pledged, including accrued interest receivable | 336,998,000 | 109,863,000 |
Cash Held on Deposit with Repurchase Agreement Counterparties | 0 | 449,000 |
Weighted Average Borrowing Rate | 0.39% | 0.49% |
Maximum Amount at Risk | $18,300,000 | ' |
Repurchase_Agreements_Maturiti
Repurchase Agreements - Maturities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Assets Sold under Agreements to Repurchase [Line Items] | ' | ' |
Fair Value of securities pledged, including accrued interest receivable | $336,998,000 | $109,863,000 |
Repurchase agreements | 318,557,054 | 103,941,174 |
Weighted Average Borrowing Rate | 0.39% | 0.49% |
Between 2 and 30 Days [Member] | ' | ' |
Assets Sold under Agreements to Repurchase [Line Items] | ' | ' |
Fair Value of securities pledged, including accrued interest receivable | 326,348,000 | 109,863,000 |
Repurchase agreements | 308,402,000 | 103,941,000 |
Weighted Average Borrowing Rate | 0.39% | 0.49% |
Between 31 and 90 Days [Member] | ' | ' |
Assets Sold under Agreements to Repurchase [Line Items] | ' | ' |
Fair Value of securities pledged, including accrued interest receivable | 10,650,000 | ' |
Repurchase agreements | $10,155,000 | ' |
Weighted Average Borrowing Rate | 0.37% | ' |
Repurchase_Agreements_Amounts_
Repurchase Agreements - Amounts At Risk (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Citigroup Global Markets, Inc. | ' | ' |
Repurchase Agreement Counterparties With Whom Amount At Risk Exceeds Ten Percent of Stockholders Equity [Line Items] | ' | ' |
Amount At Risk | $5,487,000 | $3,714,000 |
Weighted Average Maturity of Repurchase Agreement in Days | '11 days | '18 days |
South Street Securities, LLC | ' | ' |
Repurchase Agreement Counterparties With Whom Amount At Risk Exceeds Ten Percent of Stockholders Equity [Line Items] | ' | ' |
Amount At Risk | ' | $1,802,000 |
Weighted Average Maturity of Repurchase Agreement in Days | ' | '7 days |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Narrative (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Derivative Financial Instruments [Abstract] | ' |
Type of Derivative Instrument | 'Eurodollar Futures Contracts |
Underlying Risk | 'Interest Rate Risk |
Description of Objective | 'Economically hedge a portion of interest rate risk in up-rate environment |
Eurodollar_Futures_Positions_D
Eurodollar Futures Positions (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Derivatives, Fair Value [Line Items] | ' | ' |
Cash Held by Broker as Margin on Eurodollar Futures Contracts | $2,446,000 | $0 |
Eurodollar Future [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Locked-In LIBOR Rate | 2.02% | ' |
Open Equity | 4,898,000 | ' |
Year 2014 Expiration [Member] | Eurodollar Future [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Locked-In LIBOR Rate | 0.40% | ' |
Notional Amount | 262,500,000 | ' |
Open Equity | -189,000 | ' |
Year 2015 Expiration [Member] | Eurodollar Future [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Locked-In LIBOR Rate | 0.80% | ' |
Notional Amount | 275,000,000 | ' |
Open Equity | -146,000 | ' |
Year 2016 Expiration [Member] | Eurodollar Future [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Locked-In LIBOR Rate | 1.90% | ' |
Notional Amount | 250,000,000 | ' |
Open Equity | 1,367,000 | ' |
Year 2017 Expiration [Member] | Eurodollar Future [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Locked-In LIBOR Rate | 3.03% | ' |
Notional Amount | 250,000,000 | ' |
Open Equity | 2,291,000 | ' |
Year 2018 Expiration [Member] | Eurodollar Future [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Locked-In LIBOR Rate | 3.77% | ' |
Notional Amount | 250,000,000 | ' |
Open Equity | $1,575,000 | ' |
Derivative_Income_Statement_Ef
Derivative Income Statement Effect (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Derivative Financial Instruments [Abstract] | ' | ' |
Gains (losses) on Eurodollar futures contracts | $4,828,288 | ($39,725) |
Capital_Stock_Narrative_Detail
Capital Stock - Narrative - (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Common Stock [Abstract] | ' | ' |
Common Stock Shares Authorized | 500,000,000 | 1,000,000 |
Common Stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred Stock [Abstract] | ' | ' |
Preferred Shares Authorized | 100,000,000 | 0 |
Preferred Stock Par Or Stated Value Per Share | $0.01 | ' |
Ownership Limitations [Abstract] | ' | ' |
Stock Ownership Limit | 9.80% | ' |
Maximum Ownership Percentage That Bimini Can Hold as Long as it Qualifies as a REIT | 35.00% | ' |
Capital_Stock_Issuances_of_Com
Capital Stock - Issuances of Common Stock (Details) (USD $) | 1 Months Ended | 12 Months Ended | |
Jan. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Initial Public Offering [Abstract] | ' | ' | ' |
Intial Public Offering Date | ' | 20-Feb-13 | ' |
Stock Issued During Period Shares New Issues | ' | 2,360,000 | ' |
Proceeds From Issuance Initial Public Offering | ' | $35,400,000 | $0 |
Secondary Offering [Abstract] | ' | ' | ' |
Secondary Offering Period | 'January 23, 2014 | ' | ' |
Stock Issued During Secondary Offering | 1,800,000 | ' | ' |
Underwriters Overallotment Period | 'January 29, 2014 | ' | ' |
Underwriters Overallotment Shares | 270,000 | ' | ' |
Proceeds From Secondary Offering | 24,200,000 | ' | ' |
Bimini Capital Management Inc [Member] | ' | ' | ' |
Issuances of Common Stock [Abstract] | ' | ' | ' |
Shares Issued During Period | ' | ' | 4,110 |
Issuance of common shares to repay amount due to Bimini Capital Management, Inc. | ' | ' | $411,000 |
Stock Issuance Date | ' | ' | 'July 15, 2012 |
Capital_Stock_Dividends_Detail
Capital Stock - Dividends (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||||||||||||
Feb. 28, 2014 | Jan. 31, 2014 | Dec. 31, 2013 | Nov. 30, 2013 | Oct. 31, 2013 | Sep. 30, 2013 | Aug. 31, 2013 | Jul. 31, 2013 | Jun. 30, 2013 | 31-May-13 | Apr. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash Dividends [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Declaration Date | 'February 11, 2014 | 'January 9, 2014 | 'December 11, 2013 | 'November 12, 2013 | 'October 10, 2013 | 'September 10, 2013 | 'August 12, 2013 | 'July 9, 2013 | 'June 10, 2013 | 'May 9, 2013 | 'April 10, 2013 | 'March 8, 2013 | 'December 11, 2013 | ' |
Record Date | 'February 25, 2014 | 'January 27, 2014 | 'December 26, 2013 | 'November 25, 2013 | 'October 25, 2013 | 'September 25, 2013 | 'August 26, 2013 | 'July 25, 2013 | 'June 25, 2013 | 'May 28, 2013 | 'April 25, 2013 | 'March 25, 2013 | 'December 26, 2013 | ' |
Payment Date | 'February 28, 2014 | 'January 31, 2014 | 'December 30, 2013 | 'November 27, 2013 | 'October 31, 2013 | 'September 30, 2013 | 'August 30, 2013 | 'July 31, 2013 | 'June 28, 2013 | 'May 31, 2013 | 'April 30, 2013 | 'March 27, 2013 | 'December 30, 2013 | ' |
Per Share Amount | $0.18 | $0.18 | $0.18 | $0.14 | $0.14 | $0.14 | $0.14 | $0.14 | $0.14 | $0.14 | $0.14 | $0.14 | $1.40 | $0 |
Total | $974,100 | $925,500 | $601,500 | $451,125 | $451,125 | $451,125 | $451,125 | $451,125 | $451,125 | $451,125 | $451,125 | $451,125 | ' | ' |
Stock Dividend [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Dividend Declaration Date | ' | ' | '2/14/2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2/14/2013 | ' |
Shares Issued For Each Share Outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.37 | ' |
Total Shares Issued Pursuant To Stock Dividend | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 827,555 | ' |
Stock Dividend Issue Date | ' | ' | 20-Feb-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20-Feb-13 | ' |
Stock_Incentive_Plans_Descript
Stock Incentive Plans - Descriptions of Plans (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Employee Benefits And Share Based Compensation [Abstract] | ' |
Maximum Number of Shares to Be Issued the Plan | 4,000,000 |
Percentage of Outstanding Stock Limitation | 10.00% |
Income_Taxes_REIT_Activities_D
Income Taxes - REIT Activities (Details) (USD $) | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ' |
Undistributed REIT taxable income | $100,000 |
Capital Loss Carryforward | $5,200,000 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Net Income (Loss) Available to Common Stockholders, Diluted [Abstract] | ' | ' |
Net Income (Loss) Available to Common Stockholders, Basic | ($698,000) | $534,000 |
Net Income (Loss) Available to Common Stockholders, Diluted | ($698,000) | $534,000 |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | ' | ' |
Common Shares Outstanding | 3,341,665 | 154,110 |
Common shares to be distributed as a stock dividend | 0 | 828,000 |
Effect of Weighting | -330,000 | 0 |
Weighted Average Shares - Basic | 3,011,912 | 981,665 |
Weighted Average Shares - Diluted | 3,011,912 | 981,665 |
Income (Loss) Per Share - Basic | ($0.23) | $0.54 |
Income (Loss) Pe Share - Diluted | ($0.23) | $0.54 |
Earnings_Per_Share_Narrative_D
Earnings Per Share - Narrative (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Earnings Per Share [Abstract] | ' |
Stock Dividend Declaration Date | '2/14/2013 |
Shares Issued For Each Share Outstanding | 5.37 |
Total Shares Issued Pursuant To Stock Dividend | 827,555 |
Stock Dividend Issue Date | 20-Feb-13 |
Assets_and_Liabilities_Recorde
Assets and Liabilities Recorded at Fair Value on Recurring Basis (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Mortgage-backed securities | $351,222,512 | $115,379,574 |
Eurodollar Futures Contracts | 2,446,000 | 0 |
Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Mortgage-backed securities | 351,223,000 | 115,380,000 |
Eurodollar Futures Contracts | 2,446,000 | 0 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Mortgage-backed securities | 0 | 0 |
Eurodollar Futures Contracts | 2,446,000 | 0 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Mortgage-backed securities | 351,223,000 | 115,380,000 |
Eurodollar Futures Contracts | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Mortgage-backed securities | 0 | 0 |
Eurodollar Futures Contracts | $0 | $0 |
Related_Party_Transactions_Nar
Related Party Transactions - Narrative (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Related Party Transaction [Line Items] | ' | ' |
Management Fees And Allocated Expenses | $679,000 | $335,000 |
Due from affiliates | 0 | 45,126 |
Due to affiliates | 81,925 | 0 |
W Coleman Bitting [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Consulting Fees | 3,800 | 30,400 |
Bimini Capital Management Inc [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Initial Term Of Management Agreement | '1 year | ' |
Automatic Renewal Period Of Management Agreement | '1 year | ' |
Bimini Advisors, LLC [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Initial Term Of Management Agreement | '3 years | ' |
Automatic Renewal Period Of Management Agreement | '1 year | ' |
Offering Expenses Paid | 3,000,000 | 200,000 |
FlatWorld Failed Merger Costs | ' | $800,000 |