BIMINI CAPITAL MANAGEMENT, INC.

BIMINI CAPITAL MANAGEMENT,** INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

June 30, 2025

NOTE1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Business Description

Bimini Capital Management, Inc., a Maryland corporation (“Bimini Capital” and collectively with its subsidiaries, the “Company”) was formed in* September 2003,*and is a holding company. The Company operates intwo business segments through its principal wholly owned operating subsidiary, Royal Palm Capital LLC, which includes its wholly owned subsidiary, Bimini Advisors Holdings, LLC.

Royal Palm Capital, LLC maintains an investment portfolio, consisting primarily of residential mortgage-backed securities (“MBS”) investments and shares of Orchid Island Capital, Inc. (“Orchid”) common stock, for its own benefit. Royal Palm Capital, LLC and its wholly owned subsidiaries are collectively referred to as "Royal Palm."

Bimini Advisors Holdings, LLC and its wholly owned subsidiary, Bimini Advisors, LLC (an investment advisor registered with the Securities and Exchange Commission), are collectively referred to as “Bimini Advisors.” Bimini Advisors manages a MBS portfolio for Orchid and receives fees for providing these services. Bimini Advisors also provides certain repurchase agreement trading, clearing and administrative services to Orchid. Bimini Advisors also manages the MBS portfolio of Royal Palm.

Segment Reporting

The Company’s operations are classified intotwo reportable segments: the asset management segment and the investment portfolio segment. These segments are evaluated by management in deciding how to allocate resources and in assessing performance. The accounting policies of the operating segments are the same as the Company’s accounting policies with the exception that inter-segment revenues and expenses are included in the presentation of segment results. For further information see Note13.

Consolidation

The accompanying condensed consolidated financial statements include the accounts of Bimini Capital and its subsidiaries, as listed above. All inter-company accounts and transactions have been eliminated.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form10-Q and Article8 of Regulation S-X. Accordingly, they* may**not* include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of results for the interim period are included. Operating results for thesix andthree-month periods ended* June 30, 2025* arenot necessarily indicative of the results that* maybe expected for the year ending December 31, 2025*.

The consolidated balance sheet at* December 31, 2024* has been derived from the audited financial statements at that date but doesnot include all of the information and footnotes required by GAAP for complete consolidated financial statements. For further information, refer to the financial statements and footnotes included in the Company’s Annual Report on Form10-K for the year ended* December 31, 2024*.

Use of Estimates

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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could significantly differ from those estimates. Significant estimates affecting the accompanying consolidated financial statements include determining the fair values of MBS, the amounts of asset valuation allowances, and the computation of the income tax provision or benefit and the deferred tax asset allowances recorded for each accounting period.

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Variable Interest Entities (“VIEs”)

A variable interest entity (“VIE”) is consolidated by an enterprise if it is deemed the primary beneficiary of the VIE. The Company obtains interests in VIEs through its investments in MBS. The interests in these VIEs are passive in nature and arenot expected to result in the Company obtaining a controlling financial interest in these VIEs in the future. As a result, the Company doesnot consolidate these VIEs and accounts for the interest in these VIEs as MBS. See Note3. The maximum exposure to loss for these VIEs is the carrying value of the MBS.

Bimini Capital has a common share investment in a trust, Bimini Capital Trust II, (“BCTII”), used in connection with the issuance of Bimini Capital's junior subordinated notes. BCTII is a VIE, as the holders of the equity investment at risk donot have adequate decision making ability over BCTII’s activities. Bimini Capital's investment was financed directly by BCTII as a result of its loan of the proceeds to Bimini Capital, therefore that investment isnot an equity investment at risk and isnot a variable interest. Since Bimini Capital isnot the primary beneficiary of BCTII, the Company hasnot consolidated the financial statements of BCTII into its consolidated financial statements, and this investment is accounted for on the equity method. See Note7.

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 ofthree months or less at the time of purchase. Restricted cash includes cash pledged as collateral for repurchase agreements and margin for derivative instruments. The following table presents the Company’s cash, cash equivalents and restricted cash as of* June 30, 2025* and* December 31, 2024*.

The Company maintains cash balances at several banks and excess margin withtwo exchange clearing members. At times, balances* mayexceed federally insured limits. The Company hasnot* experienced any losses related to these balances. Restricted cash balances are uninsured, but are held in separate accounts that are segregated from the general funds of the counterparty. The Company limits uninsured balances to only large, well-known banks and exchange clearing members and believes that it isnot exposed to significant credit risk on cash and cash equivalents or restricted cash balances.

Advisory Services

Bimini Advisors manages and advises Orchid pursuant to the terms of a management agreement. See Note2. Under the terms of the management agreement, Orchid is obligated to pay Bimini Advisors a monthly management fee and a pro rata portion of certain overhead costs and to reimburse the Company for any direct expenses incurred on its behalf. Revenues from management fees are recognized over the period of time in which the service is performed.

Mortgage-Backed Securities

The Company invests primarily in mortgage pass-through (“PT”) MBS issued by Freddie Mac, Fannie Mae or Ginnie Mae, collateralized mortgage obligations (“CMOs”), interest-only (“IO”) securities and inverse interest-only (“IIO”) securities representing interest in or obligations backed by pools of mortgage-backed loans. The Company refers to MBS and CMOs as PT MBS and IO and IIO securities as structured MBS. The Company has elected to account for its investment in MBS under the fair value option. Electing the fair value option requires the Company to record changes in fair value in the consolidated statement of operations, which, in management’s view, more appropriately reflects the results of the Company’s operations for a particular reporting period and is consistent with the underlying economics and how the portfolio is managed.

The Company records MBS transactions on the trade date. Security purchases that havenot settled as of the balance sheet date are included in the MBS balance with an offsetting liability recorded, whereas securities sold that havenot settled as of the balance sheet date are removed from the MBS balance with an offsetting receivable recorded.

Fair value is defined as 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 MBS are based on independent pricing sources and/orthird-party broker quotes, when available.

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Income on PT MBS is based on the stated interest rate of the security. Premiums or discounts present at the date of purchase arenot amortized. Premium loss and discount accretion resulting from monthly principal repayments are reflected in unrealized gains and losses on MBS in the consolidated statements of operations. 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 for future reporting periods 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 MBS during each reporting period are recorded in earnings and reported as unrealized gains or losses on MBS in the accompanying consolidated statements of operations. The amount reported as unrealized gains or losses on MBS thus captures the net effect of changes in the fair market value of securities caused by market developments and any premium or discount lost as a result of principal repayments during the period. Realized gains and losses on sales of MBS, using the specific identification method, are reported as a separate component of net portfolio income on the statement of operations.

Orchid Island Capital, Inc. Common Stock

The Company accounts for its investment in Orchid common shares at fair value. The change in the fair value and dividends received on this investment are reflected in the consolidated statements of operations for each reporting period. We estimate the fair value of Orchid’s common shares on a market approach using “Level1” inputs based on the quoted market price of Orchid’s common stock on a national stock exchange.

Derivative Financial Instruments

The Company has historically used derivative instruments to manage interest rate risk, facilitate asset/liability strategies and manage other exposures, and it* maycontinue to do so in the future. The principal instruments that the Company has used are interest rate futures contracts, and “to-be-announced” (“TBA”) securities transactions. The Company accounts for TBA securities as derivative instruments. Other types of derivative instruments may*be used in the future. Gains and losses associated with derivative transactions are reported in gain (loss) on derivative instruments in the accompanying consolidated statements of operations.

During thesix andthree months ended* June 30, 2025* and2024, the Company only held U.S. Treasury Note (“T-Note”) and Secured Overnight Financing Rate (“SOFR”) futures contracts. The Company recorded losses of approximately $(1.8) million and $(0.4) million on these instruments during thesix andthree months ended* June 30, 2025*, respectively, compared to gains of approximately $1.4 million and $0.2 million for thesix andthree months ended* June 30, 2024*, respectively.

Derivative instruments are carried at fair value, and changes in fair value are recorded in the consolidated operations for each period. The Company’s derivative financial instruments arenot designated as hedge accounting relationships, but rather are used as economic hedges of its portfolio assets and liabilities. Gains and losses on derivatives, except those that result in cash receipts or payments, are included in operating activities on the statements of cash flows. Cash payments and cash receipts from settlement of derivatives, including current period net cash settlements on interest rate swaps, are classified as an investing activity on the statements of cash flows. The Company's derivative agreements generally contain provisions that allow for netting or setting off derivative assets and liabilities with the counterparty; however, related assets and liabilities are reported on a gross basis in the Company's consolidated balance sheets. Derivative instruments in a gain position, if any, are reported as derivative assets at fair value and derivative instruments in a loss position, if any, are reported as derivative liabilities at fair value in the consolidated balance sheets.

Holding derivatives creates exposure to credit risk related to the potential for failure by counterparties to honor their commitments. In the event of default by a counterparty, the Company* mayhave difficulty recovering its collateral and may**not* receive payments provided for under the terms of the agreement. The Company’s derivative agreements require it to post or receive collateral to mitigate such risk. In addition, the Company uses only registered central clearing exchanges and well-established commercial banks as counterparties, monitors positions with individual counterparties and adjusts posted collateral as required. The Company’s futures contracts are exchange traded contracts that are valued based on exchange pricing with daily margin requirements. The margin requirement varies based on the market value of the open position and the equity retained in the account. Margin posted is treated as settlement of the outstanding value of the futures contract. Any margin excess or deficit outstanding is recorded as a receivable or payable as of the date of the Company’s balance sheets. The Company realizes gains and losses on these contracts upon expiration equal to the difference between the current fair value of the underlying asset and the contractual price of the futures contract.

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Financial Instruments

The fair value of financial instruments is disclosed either in the body of the consolidated financial statements or in the accompanying notes. MBS, Orchid common stock and derivative assets and liabilities are accounted for at fair value in the consolidated balance sheets. The methods and assumptions used to estimate fair value for these instruments are presented in Note12.

Property and Equipment, net

Property and equipment, net, consists of computer equipment with a depreciable life of 3 years, office furniture and equipment with depreciable lives of 8 to 20 years, land which hasno depreciable life, and our building and its improvements with depreciable lives of 30 years. Property and equipment is recorded at acquisition cost and depreciated to their respective salvage values using the straight-line method over the estimated useful lives of the assets. Depreciation is included in administrative and other expenses in the consolidated statement of operations.

Repurchase Agreements

The Company finances the acquisition of the majority of its PT MBS through the use of repurchase agreements under master repurchase agreements. Repurchase agreements are accounted for as collateralized financing transactions, which are carried at their contractual amounts, including accrued interest, as specified in the respective agreements.

Earnings Per Share

Basic EPS is calculated as income available to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted EPS is calculated using the treasury stock ortwo-class method, as applicable for common stock equivalents. However, the common stock equivalents arenot included in computing diluted EPS if the result is anti-dilutive.

Outstanding shares of Class B Common Stock, participating and convertible into Class A Common Stock, are entitled to receive dividends in an amount equal to the dividends declared, if any, on each share of Class A Common Stock. Accordingly, shares of the Class B Common Stock are included in the computation of basic EPS using thetwo-class method and, consequently, are presented separately from Class A Common Stock.

The shares of Class C Common Stock arenot included in the basic EPS computation as these shares donot have participation rights. The outstanding shares of Class B and Class C Common Stock arenot included in the computation of diluted EPS for the Class A Common Stock as the conditions for conversion into shares of Class A Common Stock werenot met.

Income Taxes

Income taxes are provided for using the asset and liability method. Deferred tax assets and liabilities represent the differences between the financial statement and income tax bases of assets and liabilities using enacted tax rates. The measurement of net deferred tax assets is adjusted by a valuation allowance if, based on the Company’s evaluation, it is more likely thannot that they willnot be fully realized in future accounting periods.

The Company’s U.S. federal income tax returns for years ended on or after* December 31, 2021*remain open for examination. Although management believes its calculations for tax returns are correct and the positions taken thereon are reasonable, the final outcome of a tax examination, should it occur, could be materially different from the tax returns filed by the Company, and those differences could result in significant costs or benefits to the Company. Bimini Capital and its includable subsidiaries, and Royal Palm and its includable subsidiaries, file their tax returns as separate tax paying entities.

The Company assesses the likelihood, based on their technical merit, that uncertain tax positions will be sustained during a tax examination based on the facts, circumstances and information available. The measurement of uncertain tax positions is adjusted when new information is available, or when an event occurs that requires a change. The Company recognizes tax positions in the consolidated financial statements only when it is more likely thannot that the position will be sustained upon examination by the relevant taxing authority based on the technical merits of the position. A position that meets this standard is measured at the largest amount of benefit that will more likely thannot be realized upon settlement. The difference between the benefit recognized and the tax benefit claimed on a tax return is referred to as an unrecognized tax benefit and is recorded as a liability in the consolidated balance sheets. The Company has recordedno such liabilities. The Company records income tax-related interest and penalties, if applicable, within the income tax provision.

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Recent Accounting Pronouncements

We adopted Accounting Standards Update (“ASU”)2023-07, Segment Reporting (Topic280):Improvements to Reportable Segments,beginning with our Annual Report on Form10-K for the year ended* December 31, 2024.The ASU is applicable to our interim periods beginning in2025.* The amendments in the ASU require disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. The adoption didnot have a material impact on our financial statements.

In* December 2023,the Financial Accounting Standards Board (“FASB”) issued ASU2023*-09, Income Taxes (Topic740):Improvements to Income Tax Disclosures,which requires, among other things, greater disaggregation of information in the income tax rate reconciliation and for paid income taxes to be disaggregated by jurisdiction. On January 1, 2025,the ASU became effective. This ASU affects financial statement disclosure only, which isnot required until year-end2025 and, as a result, doesnot affect our results of operations or financial condition.

In* November 2024,the FASB issued ASUNo.* 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic220-40):Disaggregation of Income Statement Expenses. The amendments in the ASU require disclosures about specific types of expenses included in the expense captions presented on the Consolidated Statements of Income, as well as disclosures about selling expenses. ASU2024-03 is effective for fiscal years beginning after* December 15, 2026,*with early adoption allowed. We are currently evaluating the impact of adoption on our financial disclosures.

NOTE2. ADVISORY SERVICES

Bimini Advisors serves as the manager and advisor for Orchid pursuant to the terms of a management agreement. As Manager, Bimini Advisors is responsible for administering Orchid's business activities and day-to-day operations. Pursuant to the terms of the management agreement, Bimini Advisors provides Orchid with its management team, including its officers, along with appropriate support personnel. Bimini Advisors is at all times subject to the supervision and oversight of Orchid's board of directors and has only such functions and authority as delegated to it. Bimini Advisors receives a monthly management fee in the amount of:

The Company also provides certain repurchase agreement trading, clearing and administrative services to Orchid. In consideration for such services, Orchid pays the following fees to the Company:

Orchid is obligated to reimburse Bimini Advisors for any direct expenses incurred on its behalf and to pay to Bimini Advisors an amount equal to Orchid's pro rata portion of certain overhead costs set forth in the management agreement. Orchid is required to pay Bimini Advisors by the15th day of the month following the month the services are performed. The management agreement has been renewed through* February 20, 2026*and provides for automaticone-year extension options thereafter. Should Orchid terminate the management agreement without cause, it will be obligated to pay Bimini Advisors a termination fee equal tothree times the average annual management fee, as defined in the management agreement, before or on the last day of the applicable renewal term.

The following table summarizes the advisory services revenue from Orchid for thesix andthree months ended* June 30, 2025and2024*.

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At* June 30, 2025* and* December 31, 2024*, the net amount due from Orchid was approximately $1.3 million and $1.2 million, respectively.

NOTE3. MORTGAGE-BACKED SECURITIES

The following table presents the Company’s MBS portfolio as of* June 30, 2025* and* December 31, 2024*:

The following table is a summary of the Company’s net gain (loss) from the sales of MBS for thesix months ended* June 30, 2025and2024*.

NOTE4. REPURCHASE AGREEMENTS

The Company pledges certain of its MBS as collateral under repurchase agreements with financial institutions. Interest rates are generally fixed based on prevailing rates corresponding to the terms of the borrowings, and interest is generally paid at the termination of a borrowing. If the fair value of the pledged securities declines, lenders will typically require the Company to post additional collateral or pay down borrowings to re-establish agreed upon collateral requirements, referred to as “margin calls.” Similarly, if the fair value of the pledged securities increases, lenders* mayrelease collateral back to the Company. During thethree* months ended* June 30, 2025* and2024, the Company had met all margin call requirements.

As of* June 30, 2025* and* December 31, 2024*, the Company’s repurchase agreements had remaining maturities as summarized below:

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In addition, cash pledged to counterparties for repurchase agreements was approximately $0.3 million and $0.6 million as of* June 30, 2025* and* December 31, 2024,*respectively.

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, if any. At* June 30, 2025* and* December 31, 2024*, the Company had an aggregate amount at risk (the difference between the amount loaned to the Company, including interest payable, and the fair value of securities and any cash pledged, including accrued interest on such securities) with all counterparties of approximately $6.1 million and $5.8 million, respectively. Summary information regarding amounts at risk with individual counterparties greater than10% of the Company's stockholders' equity at* June 30, 2025* and* December 31, 2024* is presented in the table below.

NOTE5. PLEDGED ASSETS

Assets Pledged to Counterparties

The table below summarizes Bimini’s assets pledged as collateral under its repurchase agreements and derivative agreements as of* June 30, 2025* and* December 31, 2024*.

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Cash pledged to the Company from counterparties under repurchase agreements was $0.3 million at* December 31, 2024.There wasno cash pledged to the Company from counterparties under repurchase agreements at June 30, 2025.*Cash received as margin is recognized as cash and cash equivalents with a corresponding amount recognized as an increase in repurchase agreements in the consolidated balance sheets.

NOTE6. OFFSETTING ASSETS AND LIABILITIES

The Company’s derivatives and repurchase agreements are subject to underlying agreements with master netting or similar arrangements, which provide for the right of offset in the event of default or in the event of bankruptcy of either party to the transactions. The Company reports its assets and liabilities subject to these arrangements on a gross basis. The following tables present information regarding those assets and liabilities subject to such arrangements as if the Company had presented them on a net basis as of* June 30, 2025* and* December 31, 2024*.

The amounts disclosed for collateral received by or posted to the same counterparty are limited to the amount sufficient to reduce the asset or liability presented in the consolidated balance sheet to zero. The fair value of the actual collateral received by or posted to the same counterparty typically exceeds the amounts presented. See Note5 for a discussion of collateral posted for, or received against, repurchase obligations and derivative instruments.

NOTE7. LONG-TERM DEBT

Long-term debt at* June 30, 2025* and* December 31, 2024* is summarized as follows:

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Junior Subordinated Debt

During2005, Bimini Capital sponsored the formation of a statutory trust, known as BCTII,100% of the common equity of which is owned by Bimini Capital. It was formed for the purpose of issuing trust preferred capital securities tothird-party investors and investing the proceeds from the sale of such capital securities solely in junior subordinated debt securities of Bimini Capital. The debt securities held by BCTII are the sole assets of BCTII.

As of* June 30, 2025* and* December 31, 2024*, the outstanding principal balance on the junior subordinated debt securities owed to BCTII was $26.8 million. The interest rate for the junior subordinated debt is the CME Term SOFR on the applicable reset date plus the tenor spread adjustment of 0.26161% plus the coupon spread of 3.50%. As of* June 30, 2025* and* December 31, 2024,the interest rate was 8.08% and 8.12%, respectively. The BCTII trust preferred securities and Bimini Capital's BCTII Junior Subordinated Notes require quarterly interest distributions, are redeemable at Bimini Capital's option, in whole or in part and without penalty, and have a final maturity of December 15, 2035.*Bimini Capital's BCTII Junior Subordinated Notes are subordinate and junior in right of payment to all present and future senior indebtedness.

The Company's included consolidated financial statements present Bimini Capital's BCTII Junior Subordinated Notes issued to BCTII as a liability and Bimini Capital's investment in the common equity securities of BCTII as an asset (included in other assets). For financial statement purposes, Bimini Capital records payments of interest on the Junior Subordinated Notes issued to BCTII as interest expense.

Secured Note Payable

On* October 30, 2019,the Company borrowed $680,000 from a bank. Through October 30, 2024,interest on the note accrued at 4.89%. Thereafter, interest accrues based on the weekly average yield to the United States Treasury securities adjusted to a constant maturity of5* years, plus 3.25%. The interest rate reset to 7.37% on* October 30, 2024and will reset again on October 30, 2029.The note is secured by a mortgage on the Company’s office building and has a final maturity of October 30, 2039.*

The table below presents the future scheduled principal payments on the Company’s long-term debt.

NOTE8. COMMON STOCK

There wereno issuances of Bimini Capital's Class A Common Stock, Class B Common Stock or Class C Common Stock during thesix months ended* June 30, 2025and2024*.

Stock Repurchase Plans

On* March 7, 2024,the Board authorized a share repurchase plan pursuant to Rule10b5*-1 of the Securities Exchange Act of1934 (the*“2024* Repurchase Plan”). Pursuant to the2024 Repurchase Plan, the Company can purchase shares of its Class A Common Stock from time to time for an aggregate purchase pricenot to exceed $2.5 million. Share repurchases can be executed through various means, including, without limitation, open market transactions. The2024 Repurchase Plan doesnot obligate the Company to purchase any shares, and expires on* March 7, 2026.The authorization for the2024* Repurchase Plan can be terminated, increased or decreased by the Company’s Board of Directors in its discretion at any time. The Company hasnot repurchased any shares under the2024 Repurchase Plan.

NOTE9. 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.

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As previously disclosed, in* April 2020and November 2021,the Company received demands for payment from Citigroup, Inc. related to the indemnification provisions of various mortgage loan purchase agreements entered into prior to2007.* As of* June 30, 2025*,no further information has been received related to this matter. The ultimate resolution of this matter cannot presently be determined. However, in management's opinion, the demands are without merit and the likelihood of a material adverse outcome is remote. Accordingly, no provision or accrual has been recorded.

Management isnot aware of any other significant reported or unreported contingencies at* June 30, 2025*.

NOTE10. INCOME TAXES

The total income tax provision recorded for thesix months ended* June 30, 2025and2024* was $0.2 million and $0.5 million, respectively, on consolidated pre-tax book income of $0.8 million and $0.4 million, respectively. The total income tax provision recorded for thethree months ended* June 30, 2025and2024* was $6.5 thousand and $0.1 million, respectively, on consolidated pre-tax book income (loss) of $49.3 thousand and $(0.2) million, respectively. Company uses the discrete-period computation method for determining its income tax provision. The Company's income tax provision could be affected by numerous factors, including nondeductible expenses, the projected utilization of net operating loss carryovers (“NOLs”) and changes in its deferred tax assets and liabilities and their valuations.

The Company’s tax provisions are computed using actual annual tax rates applied to actual income to date and include the expected realization of a portion of the tax benefits of federal and state NOLs. In assessing the realizability of deferred tax assets, management considers whether it is more likely thannot that some portion or all of the deferred tax assets willnot be realized in future accounting periods. The ultimate realization of net capital loss carryforwards and NOLs is dependent upon the generation of future capital gains and taxable income in periods prior to their expiration. The Company currently provides a valuation allowance against a portion of the deferred tax assets generated by the NOLs since the Company believes that it is more likely thannot that some of the benefits willnot be realized in the future. The Company will continue to assess the need for, and the amount of, the valuation allowance at each reporting date.

NOTE11. EARNINGS PER SHARE

Shares of Class B common stock, participating and convertible into Class A common stock, are entitled to receive dividends in an amount equal to the dividends declared on each share of Class A common stock if, and when, authorized and declared by the Board of Directors. Class B common stock is included in the computation of basic EPS using thetwo-class method, and consequently is presented separately from Class A common stock. Shares of Class B common stock arenot included in the computation of diluted Class A EPS as the conditions for conversion to Class A common stock werenot met at* June 30, 2025and2024*.

Shares of Class C common stock arenot included in the basic EPS computation as these shares donot have participation rights. Shares of Class C common stock arenot included in the computation of diluted Class A EPS as the conditions for conversion to Class A common stock werenot met at* June 30, 2025and2024*.

The table below reconciles the numerator and denominator of EPS for thesix andthree months ended* June 30, 2025and2024*.

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NOTE12. FAIR VALUE

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit 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 presentation of balance sheet amounts measured at fair value based on inputs the Company uses to derive fair value measurements. These inputs are:

The Company's MBS and Orchid common stock are recorded at fair value on a recurring basis as of* June 30, 2025* and* December 31, 2024.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 arenot* traded in active markets, the Company looks to market observable data for similar assets.

The Company's MBS are valued using Level2 valuations, and such valuations currently are determined by the Company based on independent pricing sources and/orthird-party broker quotes. 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. The Company and the independent pricing sources use various valuation techniques to determine the price of the Company’s securities. These techniques include observing the most recent market for like or identical assets (including security coupon, maturity, yield, and prepayment speeds), spread pricing techniques to determine market credit spreads (option adjusted spread,zero volatility spread, spread to the U.S. Treasury curve or spread to a benchmark such as a TBA security), and model driven approaches (the discounted cash flow method, Black Scholes and SABR models which rely upon observable market rates such as the term structure of interest rates and volatility). The appropriate spread pricing method used is based on market convention. The pricing source determines the spread of recently observed trade activity or observable markets for assets similar to those being priced. The spread is then adjusted based on variances in certain characteristics between the market observation and the asset being priced. Those characteristics include: type of asset, the expected life of the asset, the stability and predictability of the expected future cash flows of the asset, whether the coupon of the asset is fixed or adjustable, the guarantor of the security if applicable, the coupon, the maturity, the issuer, size of the underlying loans, year in which the underlying loans were originated, loan to value ratio, state in which the underlying loans reside, credit score of the underlying borrowers and other variables if appropriate. The fair value of the security is determined by using the adjusted spread.

The Company’s futures contracts are Level1 valuations, as they are exchange-traded instruments and quoted market prices are readily available. Futures contracts are settled daily.

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The estimated fair value of cash and cash equivalents, restricted cash, accrued interest receivable, other assets, due from affiliates, repurchase agreements, accrued interest payable and other liabilities generally approximates their carrying values due to the short-term nature of these financial instruments. The Company estimates the fair value of the cash and cash equivalents and restricted cash using Level1 inputs, and the accrued interest receivable, other assets, due from affiliates, repurchase agreements, accrued interest payable and other liabilities using Level2 inputs. The fair value of the Company’s junior subordinated debt approximates its carrying value. The carrying value is a reasonable estimate of fair value since the instrument carries a floating rate that resets frequently. Further information regarding this instrument is presented in Note7.

The following table presents financial assets and liabilities measured at fair value on a recurring basis as of* June 30, 2025* and* December 31, 2024*:

During thesix months ended* June 30, 2025and2024*, there wereno transfers of financial assets or liabilities between Levels1, 2 or3.

NOTE13. SEGMENT INFORMATION

The Company’s business is organized into the asset management and the investment portfolio segments, with each representing a reportable segment. Our CODM is our Chief Executive Officer. The results of each segment are regularly reviewed by the CODM to assess the performance of the segment and make decisions regarding the allocation of resources to the segments. The CODM uses both net revenues and income before federal income taxes, to assess the financial performance of the segments and for purposes of allocating resources. The accounting policies of ourtwo reportable business segments are the same as those described in Note1.

The asset management segment includes the investment advisory services provided by Bimini Advisors to Orchid and Royal Palm. As discussed in Note2, the revenues of the asset management segment consist of management fees, overhead reimbursements and repurchase, clearing and administrative fees received pursuant to a management agreement with Orchid. Total revenues received under this management agreement for thesix andthree months ended* June 30, 2025* were approximately $7.4 million and $3.8 million, respectively, accounting for approximately 66% and 68% of consolidated revenues. Total revenues received under this management agreement for thesix andthree months ended* June 30, 2024* were approximately $6.1 million and $3.2 million, respectively, accounting for approximately 66% and 68% of consolidated revenues.

The investment portfolio segment includes the investment activities conducted by Royal Palm. The investment portfolio segment receives revenue in the form of interest and dividend income on its investments.

The majority of our assets, revenues and expenses are directly associated with each respective business segment and are included in determining its asset balance and operating results. Those assets, revenues and expenses that arenot directly attributable to a particular business segment are included in the Corporate function. Corporate operating expenses are allocated to the reportable segments based on their proportional share of total revenues. As a result, the sum of each income statement line item for thetwo reportable segments and the Corporate function is equal to that same income statement line item for the consolidated entity. In addition, the sum of the total assets for thetwo reportable segments and the Corporate function is equal to the total assets of the consolidated entity.

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Segment information for thesix months ended* June 30, 2025and2024* is as follows:

Segment information for thethree months ended* June 30, 2025and2024* is as follows:

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Assets in each reportable segment as of* June 30, 2025* and* December 31, 2024* were as follows:

NOTE14. RELATED PARTY TRANSACTIONS

At both* June 30, 2025* and* December 31, 2024*, the Company owned 569,071 shares of Orchid common stock, representing approximately 0.5% and 0.7%, respectively, of Orchid’s outstanding common stock on such dates. The Company received dividends on this common stock investment of approximately $0.4 million and $0.4 million during thesix months ended* June 30, 2025and2024*, respectively, and $0.2 million and $0.2 million during thethree months ended* June 30, 2025and2024*, respectively.

Robert Cauley, the Chief Executive Officer and Chairman of the Board of Directors of the Company, also serves as Chief Executive Officer and Chairman of the Board of Directors of Orchid, participates in Orchid's long term incentive compensation plan, and owns shares of common stock of Orchid. In addition, Hunter Haas, the Chief Financial Officer, Chief Investment Officer, Treasurer and member of the Board of Directors of the Company, also serves as Chief Financial Officer, Chief Investment Officer and Secretary of Orchid, is a member of Orchid’s Board of Directors, participates in Orchid's long term incentive compensation plan, and owns shares of common stock of Orchid. Robert J. Dwyer and Frank E. Jaumot, who are the Company's independent directors, each own shares of common stock of Orchid.

NOTE15. SUBSEQUENT EVENT

On* July 4, 2025,President Donald Trump signed the One Big Beautiful Bill Act (the "Act") into law. Key corporate tax provisions in the Act include the restoration of100%* bonus depreciation, immediate expensing for domestic research and experimental expenditures, changes to interest limitations under Section163(j) of the Internal Revenue Code of1986, as amended (the “Code”), updates to global intangible low-taxed income (GILTI) and foreign-derived intangible income (FDII) rules, amendments to energy credits, and expanded aggregation requirements under Section162(m) of the Code. In accordance with ASC740, the effects of the new tax law will be recognized in the period of enactment. Accordingly, the impact of the Act will be reflected beginning in the Company’s financial statements for thethird quarter of2025. The Company is currently evaluating the impact of the Act, and an estimate of the financial effect cannot be made at this time.

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