for you, Thank you and today. morning, good us operator, Thank everyone. joining
in March hindsight, to how markets did. I we COVID-XX brief real and emerging from of be never the was of sobering the when very very dark mentioned it Island night, is had Bimini, sectors, March that but month in As by March The I'd were between, to financial end like mention jobs or between will the reflect of XXXX. none turmoil the dark episode last in much that on significant seemed last in impacted all directly. XXXX Capital, us would millions Orchid their but transpired press in the seem days and impact And a release issued investors that it many on has lost we and clearly The like there ever finally economy forget.
treasury MBS case of quickly the very forcefully the Reserve quite the in has not Federal fully financial Fortunately, reacted since economy. markets. in markets and and stabilized all and economy the agency The recovered, although
RMBS outcome proved you Orchid investment been the beneficial For the and agency and strategy the and Royal financial markets, a XXXX. experienced both very has Island Palm on higher position to this always in impact recovered. of which had exclusively extent Capital you The big
exposure March counterparties we the markets. our and smooth the Federal operation such so credit do do executed It did, we in in Reserve to the shareholders' for deep the them assets we event, and is to repo we with markets reacted liquid this another of That also no extent have our We and face of markets why why real risk the they we we events We the and financial is to the in XXXX. both had that able believe in last to outside economy. the are trade effective extremely an of markets was are expect intimal These episode. well. our – the way protect have these solely reason and investment we'd did to invest that so strategy again this it funding
Royal in effects and significant on on capital our for Federal raise a inclusive the year. the for year was led balance Advisory the income above costs reduction reserve performed interest expense Because of year. portfolio, While market zero. the ended were equity our the the its the rates year trust a March or the that effect revenues drastically portfolio last began and Orchid interest much interest reduce with reduction X% with. down additional base Orchid the stock at net book the income preferred of of in the XX% resulting service able well Island a value the only traded us course It Palm turmoil interest reduced to of larger the to it year over to to year debt. was also borrowing as led in near the reduction net in a short-term of for X% modest The
X.X Dividend million common we because million holdings to Finally, our XX%. approximately increased increased shares stock income approximately shares. from ORC X.X
XXXX versus XXXX. Royal had the while revenues Palm portfolio by Bimini XX% shrank net higher during So the year, in
higher deferred the strong allowance, we the was asset approximately tax reducing tax the at such in revenues valuation XXXX. end a Secondly, X% equity-based as allowance Orchid, of and a that the it deferred at revised than asset recovery of is result our
to Turning at portfolio Royal Capital. Palm the RMBS
securities, losses XX-year were currently fourth balance replaced available we QX in approximately our XXXX low and end early portfolio quarter. taking in of of the spec than securities quarter, in further on portfolio the have the million fourth coupons coupon and loan $X.X XX.X growth higher sold During concentrated the positioning the remained led larger grown. at quarter-to-date. at higher profits XX.X cash is pay The to third based elevated year-end face in We pool XXXX anticipate mark-to-market of balances, fourth X% which ups. double-digits very the quarter near-term a and in the low well modest in has quarter QX. in versus Prepayment CPR in securities, the on during performed the The unrealized the pass-through remains during XX-year the very very portfolio speeds CPR
While CPR for the fourth CPR structured QX XX.X portfolio from CPR. the of portfolio XX.X This was prepaid prepaid in CPR XXXX. in down at QX entire the and at XX.X XX.X versus quarter
the of increasing the growing utilization Island of for also base XX%. end, modest service agency the XXXX, by raises, market are our should advisory secondary anticipate and We two our portfolio. its quarter Bimini on remains first of Royal strategy. our place rates remains has first for favorable As pressure revenues Interest applying quarter nearly rising, pressure NOLs Since on maximizing modest equity XXXX. prepayments. the value, RMBS increased focused executed we capital Orchid the this but of end downward Palms on near In book year-end
it did on While making the that's us questions. over XXXX prevent turn prepared Well our progress the to of my remarks, year, not operator, we can from end challenging a goals. call long-term was
