Orchid Island Capital 8K Other Events | ORC 9 Dec 14

Exhibit 99.1

ORCHID ISLAND CAPITAL ANNOUNCES

DECEMBER 2014 MONTHLY DIVIDEND AND

NOVEMBER 28, 2014 RMBS PORTFOLIO CHARACTERISTICS

·	December 2014 Monthly Dividend of $0.18 Per Share

·	RMBS Portfolio Characteristics as of November 28, 2014

Vero Beach, FL, December 9, 2014 - Orchid Island Capital, Inc. (the “Company”) (NYSE:ORC) announced that today the Board of Directors declared a monthly cash dividend for the month of December 2014. The dividend of $0.18 per share will be paid December 30, 2014, to holders of record on December 26, 2014, with an ex-dividend date of December 23, 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.

As of December 5, 2014, the Company had 16,270,773 shares outstanding, including shares sold via the Company’s At-The-Market program through that date that have not yet settled. At September 30, 2014, the Company had 13,024,449 shares outstanding.

RMBS Portfolio Characteristics

Details of the RMBS portfolio as of November 28, 2014 are presented below. These figures are preliminary and subject to change. The information contained herein is an intra-quarter update created by the Company based upon information that the Company believes is accurate:

·	RMBS Valuation Characteristics

·	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. has elected 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			Nov 2014 CPR
Asset Category	Face1		Value1		Price		Portfolio			Coupon			(Reported in Dec)
As of November 28, 2014
Adjustable Rate RMBS	$	3,546	$	3,742		105.52		0.27	%		3.52	%		0.00	%
10-1 Hybrid Rate RMBS		69,625		70,961		101.92		5.17	%		2.54	%		5.33	%
Hybrid Adjustable Rate RMBS		69,625		70,961		101.92		5.17	%		2.54	%		5.33	%
15 Year Fixed Rate RMBS		79,567		84,531		106.24		6.15	%		3.40	%		6.79	%
20 Year Fixed Rate RMBS		242,424		261,221		107.75		19.00	%		4.00	%		2.60	%
30 Year Fixed Rate RMBS		816,204		895,130		109.67		65.11	%		4.57	%		4.47	%
Total Fixed Rate RMBS		1,138,195		1,240,882		109.02		90.26	%		4.37	%		4.22	%
Total Pass-through RMBS		1,211,366		1,315,585		108.60		95.70	%		4.27	%		4.28	%
Interest-Only Securities		329,707		42,398		12.86		3.08	%		4.04	%		13.59	%
Inverse Interest-Only Securities		106,089		16,740		15.78		1.22	%		6.23	%		12.09	%
Structured RMBS		435,796		59,138		13.57		4.30	%		4.66	%		13.22	%
Total Mortgage Assets	$	1,647,162	$	1,374,723				100.00	%		4.28	%		7.12	%

(1)	Amounts include assets with a fair value of approximately $44.5 million purchased in November 2014 which settle in December 2014.

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 November 28, 2014						As of November 28, 2014
Fannie Mae	$	1,052,459		76.6	%	Whole Pool Assets	$	1,077,791		78.4	%
Freddie Mac		313,248		22.7	%	Non Whole Pool Assets		296,932		21.6	%
Ginnie Mae		9,016		0.7	%	Total Mortgage Assets	$	1,374,723		100.0	%
Total Mortgage Assets	$	1,374,723		100.0	%

Repurchase Agreement Exposure By Counterparty
($ in thousands)
						Weighted
			% of			Average
	Total		Total			Maturity		Longest
As of November 28, 2014	Borrowings1		Debt			in Days		Maturity
J.P. Morgan Securities LLC	$	190,001		15.3	%		63	3/10/2015
Citigroup Global Markets Inc		178,474		14.5	%		32	2/4/2015
CRT Capital Group, LLC		116,903		9.5	%		54	1/26/2015
KGS-Alpha Capital Markets, L.P		109,673		8.9	%		44	4/6/2015
Mitsubishi UFJ Securities (USA), Inc		89,133		7.3	%		43	1/23/2015
Cantor Fitzgerald & Co		78,215		6.4	%		26	1/20/2015
ED&F Man Capital Markets Inc		75,916		6.2	%		46	2/2/2015
Goldman, Sachs & Co		61,277		5.0	%		83	2/19/2015
Morgan Stanley & Co		59,011		4.8	%		19	12/17/2014
Guggenheim Securities, LLC		49,901		4.1	%		45	1/23/2015
Barclays Capital Inc.		48,839		4.0	%		26	12/24/2014
South Street Securities, LLC		37,501		3.1	%		38	1/26/2015
Daiwa Securities America Inc.		32,747		2.7	%		14	12/12/2014
Suntrust Robinson Humphrey, Inc		32,225		2.6	%		3	12/1/2014
Mizuho Securities USA, Inc		25,115		2.0	%		51	1/26/2015
ICBC Financial Services LLC		23,494		1.9	%		55	1/22/2015
Other		20,676		1.7	%		83	2/19/2015
Total Borrowings	$	1,229,101		100.0	%		44	4/6/2015

(1)	In November 2014, the Company purchased assets with a fair value of approximately $44.5 million which settle in December 2014 that are expected to be funded by repurchase agreements.

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 November 28, 2014
Adjustable Rate RMBS	$	3,742		5		10.05	%		2.00	%	$	16		$	(22	)
Hybrid Adjustable Rate RMBS		70,961		99		7.54	%		2.00	%		1,373			(1,656	)
Total Fixed Rate RMBS		1,240,882		n/a		n/a			n/a			18,279			(26,137	)
Total Pass-through RMBS		1,315,585		n/a		n/a			n/a			19,668			(27,815	)
Interest-Only Securities		42,398		n/a		n/a			n/a			(6,397	)		5,800
Inverse Interest-Only Securities		16,740		1		6.39	%		n/a			(823	)		137
Structured RMBS		59,138		n/a		n/a			n/a			(7,220	)		5,937
Total Mortgage Assets	$	1,374,723		n/a		n/a			n/a		$	12,448		$	(21,878	)
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					$	760,000		Dec-2018			$	(12,804	)	$	14,250
Payer Swaption						375,000		Sep-2025				(340	)		929
Grand Total											$	(696	)	$	(6,699	)

(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

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