Orchid Island Capital (ORC) 8-K Results of Operations and Financial Condition

EXHIBIT 99.1

ORCHID ISLAND CAPITAL ANNOUNCES

JULY 2014 MONTHLY DIVIDEND AND

JUNE 30, 2014 RMBS PORTFOLIO CHARACTERISTICS

·   July 2014 Monthly Dividend of $0.18 Per Share

·   Estimated Book Value Per Share at June 30, 2014 of $13.05

·   RMBS Portfolio Characteristics as of June 30, 2014

Vero Beach, Fla., July 10, 2014 - Orchid Island Capital, Inc. (the “Company”) (NYSE MKT:ORC) announced that today the Board of Directors declared a monthly cash dividend for the month of July 2014. The dividend of $0.18 per share will be paid July 31, 2014, to holders of record on July 28, 2014, with an ex-dividend date of July 24, 2014.

The Company intends to make regular monthly cash distributions to its stockholders. In order to qualify as a real estate investment trust (“REIT”) the Company must distribute annually to its stockholders an amount at least equal to 90% of its REIT taxable income, determined without regard to the deduction for dividends paid and excluding any net capital gain. The Company will be subject to income tax on taxable income that is not distributed and to an excise tax to the extent that certain percentages of its taxable income is not distributed by specified dates. The Company has not established a minimum distribution payment level and is not assured of its ability to make distributions to stockholders in the future.

Estimated June 30, 2014 Book Value Per Share

The Company’s estimated book value per share as of June 30, 2014 was $13.05.  The Company computes book value per share by dividing total stockholders' equity by the total number of shares outstanding of the Company's Common Stock. At June 30, 2014, the Company's preliminary estimated total stockholders' equity was approximately $125.7 million with 9,632,108 Common shares outstanding. These figures and the resulting estimated book value per share are preliminary, subject to change, and subject to review by the Company’s independent registered public accounting firm.

RMBS Portfolio Characteristics

Details of the RMBS portfolio as of June 30, 2014 are presented below. These figures are preliminary and subject to change and, with respect to figures that will appear in the Company’s unaudited financial statements and associated footnotes as of and for the three month period ended June 30, 2014, are subject to  review by the Company’s independent registered public accounting firm.

·   RMBS Assets by Agency

·   Investment Company Act of 1940 Whole Pool Test Results

·   Repurchase agreement exposure by counterparty

·   RMBS Risk Measures

About Orchid Island Capital, Inc.

Orchid Island Capital, Inc. is a specialty finance company that invests in Agency RMBS that are either traditional pass-through Agency RMBS or structured Agency RMBS. Orchid Island Capital, Inc. intends to elect to be taxed as a real estate investment trust for federal income tax purposes.

Forward Looking Statements

This press release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward looking statements are based upon Orchid Island Capital, Inc.’s present expectations, but these statements are not guaranteed to occur. Investors should not place undue reliance upon forward looking statements. For further discussion of the factors that could affect outcomes, please refer to the “Risk Factors” section of the Company’s Form 10-K for the year ended December 31, 2013.

RMBS Valuation Characteristics
($ in thousands)
							Percentage			Weighted			Realized
	Current		Fair		Current		of			Average			Jun 2014 CPR
Asset Category	Face		Value		Price		Portfolio			Coupon			(Reported in Jul)
As of June 30, 2014
Adjustable Rate RMBS	$	4,286	$	4,650		108.51		0.53	%		4.11	%		0.18	%
10-1 Hybrid Rate RMBS		74,473		75,061		100.79		8.57	%		2.55	%		12.61	%
Hybrid Adjustable Rate RMBS		74,473		75,061		100.79		8.57	%		2.55	%		12.61	%
15 Year Fixed Rate RMBS		83,012		87,688		105.63		10.01	%		3.40	%		3.25	%
20 Year Fixed Rate RMBS		123,605		131,984		106.78		15.07	%		3.93	%		3.91	%
30 Year Fixed Rate RMBS		482,603		527,538		109.31		60.22	%		4.54	%		5.57	%
Total Fixed Rate RMBS		689,220		747,210		108.41		85.30	%		4.30	%		4.81	%
Total Pass-through RMBS		767,979		826,921		107.68		94.40	%		4.14	%		5.74	%
Interest-Only Securities		281,193		38,743		13.78		4.42	%		4.40	%		19.25	%
Inverse Interest-Only Securities		72,162		10,340		14.33		1.18	%		6.04	%		13.43	%
Structured RMBS		353,355		49,083		13.89		5.60	%		4.74	%		17.98	%
Total Mortgage Assets	$	1,121,334	$	876,004				100.00	%		4.17	%		10.08	%

RMBS Assets by Agency						Investment Company Act of 1940 (Whole Pool) Test
($ in thousands)						($ in thousands)
			Percentage						Percentage
	Fair		of				Fair		of
Asset Category	Value		Portfolio			Asset Category	Value		Portfolio
As of June 30, 2014						As of June 30, 2014
Fannie Mae	$	547,123		62.5	%	Whole Pool Assets	$	740,212		84.5	%
Freddie Mac		318,454		36.3	%	Non Whole Pool Assets		135,792		15.5	%
Ginnie Mae		10,427		1.2	%	Total Mortgage Assets	$	876,004		100.0	%
Total Mortgage Assets	$	876,004		100.0	%

Repurchase Agreement Exposure By Counterparty
($ in thousands)
						Weighted
			% of			Average
	Total		Total			Maturity		Longest
As of June 30, 2014	Borrowings		Debt			in Days		Maturity
Citigroup Global Markets Inc	$	156,153		19.8	%		19	9/3/2014
Cantor Fitzgerald & Co		79,295		10.1	%		27	8/22/2014
KGS-Alpha Capital Markets, L.P		76,241		9.7	%		36	10/3/2014
Morgan Stanley & Co		66,373		8.5	%		50	8/19/2014
CRT Capital Group, LLC		64,760		8.3	%		55	8/29/2014
Mitsubishi UFJ Securities (USA), Inc		58,960		7.5	%		7	7/25/2014
Goldman, Sachs & Co		56,637		7.2	%		25	7/28/2014
ED&F Man Capital Markets Inc		53,094		6.8	%		21	8/1/2014
J.P. Morgan Securities LLC		48,343		6.2	%		10	7/11/2014
Mizuho Securities USA, Inc		45,138		5.8	%		13	7/23/2014
South Street Securities, LLC		40,042		5.1	%		16	7/28/2014
Suntrust Robinson Humphrey, Inc		24,826		3.2	%		3	7/3/2014
Other		13,839		1.8	%		74	9/12/2014
Total Borrowings	$	783,701		100.0	%		26	10/3/2014

RMBS Risk Measures
($ in thousands)
Mortgage Assets
			Weighted
			Average		Weighted			Weighted			Modeled			Modeled
			Months		Average			Average			Interest			Interest
			To Next		Lifetime			Periodic			Rate			Rate
	Fair		Coupon Reset		Cap			Cap Per Year			Sensitivity			Sensitivity
Asset Category	Value		(if applicable)		(if applicable)			(if applicable)			(-50 BPS)(1)			(+50 BPS)(1)
As of June 30, 2014
Adjustable Rate RMBS	$	4,650		1		10.16	%		2.00	%	$	7		$	(13	)
Hybrid Adjustable Rate RMBS		75,061		104		7.55	%		2.00	%		1,768			(2,134	)
Total Fixed Rate RMBS		747,210		n/a		n/a			n/a			13,795			(19,349	)
Total Pass-through RMBS		826,921		n/a		n/a			n/a			15,570			(21,496	)
Interest-Only Securities		38,743		n/a		n/a			n/a			(7,049	)		6,872
Inverse Interest-Only Securities		10,340		0		6.19	%		n/a			(647	)		136
Structured RMBS		49,083		n/a		n/a			n/a			(7,696	)		7,008
Total Mortgage Assets	$	876,004		n/a		n/a			n/a		$	7,874		$	(14,488	)
Funding Hedges
											Modeled			Modeled
											Interest			Interest
					Average			Hedge			Rate			Rate
					Notional			Period			Sensitivity			Sensitivity
					Balance			End Date			(-50 BPS)(1)			(+50 BPS)(1)
Eurodollar Futures Contracts - Short Positions					$	500,000		Dec-2018			$	(8,950	)	$	10,295
Payer Swaption						100,000		Jun-2020				(680	)		1,295
Grand Total											$	(1,756	)	$	(2,898	)

(1)   Modeled results from Citigroup Global Markets, Inc. Yield Book. Interest rate shocks assume instantaneous parallel shifts and horizon prices are calculated assuming constant LIBOR OAS. These results are for illustrative purposes only and actual results may differ materially.

Contact:

Orchid Island Capital, Inc.

Robert E. Cauley

3305 Flamingo Drive, Vero Beach, Florida 32963

Telephone: (772) 231-1400