Orchid Island Capital, Inc.

Additionally, the likely benefits from the One Big Beautiful Bill Act, deregulation, capital expenditure and artificial intelligence should be supportive of growth in the near future.

SEC original ↗Orchid Island Capital, Inc. — Earnings release (8-K exhibit)EX-99Oct 23, 2025

The yield on our average Agency RMBS increased from 5.38% in the second quarter of 2025 to 5.65% for the third quarter of 2025 , and our repurchase agreement borrowing costs increased from 4.23% for the second quarter of 2025 to 4.45% for the third quarter of 2025 .

SEC original ↗Orchid Island Capital, Inc. — Earnings release (8-K exhibit)EX-99Oct 23, 2025

The increase in book value reflects our net income of $0.53 per share and the dividend distribution of $0.36 per share.

SEC original ↗Orchid Island Capital, Inc. — Earnings release (8-K exhibit)EX-99Oct 23, 2025

Financing, Leverage and Liquidity As of September 30, 2025 , the Company had outstanding repurchase obligations of approximately $8.0 billion with a net weighted average borrowing rate of 4.33% .

SEC original ↗Orchid Island Capital, Inc. — Earnings release (8-K exhibit)EX-99Oct 23, 2025

The Company s adjusted leverage ratio, defined as the balance of repurchase agreement liabilities divided by stockholders' equity, at September 30, 2025 was 7.4 to 1.

SEC original ↗Orchid Island Capital, Inc. — Earnings release (8-K exhibit)EX-99Oct 23, 2025

To enhance our liquidity even further, we may pledge more of our structured RMBS as part of a repurchase agreement funding, but retain the cash in lieu of acquiring additional assets.

SEC original ↗Orchid Island Capital, Inc. — Earnings release (8-K exhibit)EX-99Oct 23, 2025

158,100 1.97 % 4.41 % 14 Natixis, New York Branch 104,895 1.31 % 4.34 % 29 Lucid Prime Fund, LLC 34,907 0.44 % 4.34 % 16 Total / Weighted Average $ 8,006,978 100.00 % 4.33 % 39 Hedging In connection with its interest rate risk management strategy, the Company economically hedges a portion of the cost of its repurchase agreement funding against a rise in interest rates by entering into derivative financial instrument contracts.

SEC original ↗Orchid Island Capital, Inc. — Earnings release (8-K exhibit)EX-99Oct 23, 2025

We entered into these arrangements to generate additional cash available to meet margin calls on PT RMBS; therefore, we have not considered these balances to be allocated to the structured securities strategy.

SEC original ↗Orchid Island Capital, Inc. — Earnings release (8-K exhibit)EX-99Oct 23, 2025

Our investment strategy focuses on, and our portfolio consists of, two categories of Agency RMBS: (i) traditional pass-through Agency RMBS, such as mortgage pass-through certificates, and CMOs issued by the GSEs, and (ii) structured Agency RMBS, such as IOs, IIOs and principal only securities, among other types of structured Agency RMBS.

SEC original ↗Orchid Island Capital, Inc. — Earnings release (8-K exhibit)EX-99Oct 23, 2025

There is evidence that the tariffs introduced by the U.

SEC original ↗Orchid Island Capital, Inc. — Earnings release (8-K exhibit)EX-99Oct 23, 2025

presidential administration and the associated uncertainty surrounding their impact on growth and inflation is impacting the labor market, and the Federal Reserve has stated they now see the balance of risk tilted towards economic weakness versus inflation.

SEC original ↗Orchid Island Capital, Inc. — Earnings release (8-K exhibit)EX-99Oct 23, 2025

However, there is also evidence that the economy has been resilient in the face of the tariffs and that growth and consumer spending appear stable.

SEC original ↗Orchid Island Capital, Inc. — Earnings release (8-K exhibit)EX-99Oct 23, 2025

government, including the Fed, market expectations, capital raising, future opportunities and prospects of the Company, the stock repurchase program, geopolitical uncertainty and general economic conditions (including the effects of tariffs, trade wars, inflation, the U.

SEC original ↗Orchid Island Capital, Inc. — Earnings release (8-K exhibit)EX-99Oct 23, 2025

The reader is cautioned that such forward-looking statements are based on information available at the time and on management's good faith belief with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in such forward-looking statements.

SEC original ↗Orchid Island Capital, Inc. — Earnings release (8-K exhibit)EX-99Oct 23, 2025