Orchid Island Capital, Inc. · NYSE:ORC

Orchid Island Capital — Investor Presentation (June 2013)

10 slides from Orchid Island Capital's investor presentation, Jun 10, 2013

  1. Slide 1: Investor Presentation - June 2013

    Investor Presentation - June 2013

  2. Slide 2: Disclaimers

    Disclaimers FORWARD-LOOKING INFORMATION This presentation contains forward-looking statements and information. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements include statements preceded by,

  3. Slide 3: Investment Highlights

    Investment Highlights Track Record of Performance  Annualized return on invested capital at Bimini of 22.4% from September 2008 to December 2012  149% cumulative return on invested capital based on 18 quarters of operation  Demonstrated consistent returns through Agency- only strategy with minima

  4. Slide 4: Overview of Orchid Island

    Overview of Orchid Island Externally Target Assets Management Management Fee Dividend Policy Managed  Agency pass-though  Robert E. Cauley,  Manager is a wholly  1.50% of equity,  Monthly Dividends to securities and CEO owned subsidiary of scaling down paid out of taxable structured Agency Bimi

  5. Slide 5: Experienced Management

    Experienced Management Robert E. Cauley G. Hunter Haas, IV Jerry Sintes Chief Executive Officer, President and Chief Financial Officer, Secretary, Chief Vice President, Controller and Treasurer Chairman of the Board Investment Officer and Director Co-Founded Bimini 12 years of industry experience 25

  6. Slide 6: Independent Directors

    Independent Directors John B. Van Heuvelen W. Coleman Bitting Frank P. Filipps Ava L. Parker Position at Orchid: Director; Position at Orchid: Independent Position at Orchid: Independent Position at Orchid: Independent audit committee chair and director, compensation committee Director, member of au

  7. Slide 7: Challenges of the Traditional Model

    Challenges of the Traditional Model The traditional REIT investment model: Repo-funded pass-through securities  Holders of premium priced Agency RMBS are Equity Issuances vs. Agency Prices(1) $ in 000s Dollars ($) Price Risk vulnerable to losses if prepayments rise 3,000 108 unexpectedly Agency Mor

  8. Slide 8: Orchid Approach

    Orchid Approach 1 Asset Selection 2 Embedded Leverage 3 Protect Book Value Issue  Traditional REITs buy a  Traditional REITs finance  Traditional REITs imperfectly narrow catalogue of low- long-term assets with short hedge MBS with swaps duration MBS term debt  Orchid expands the  Unfunded stru

  9. Slide 9: Our Approach to Risk Management

    Our Approach to Risk Management Asset Selection Book Value Stability Embedded Leverage  Structured Agency RMBS can  Agency pass-though securities  Strategy does not require ongoing provide more attractive returns combined with structured Agency fixed swap payments, yet has a than pass-throughs in

  10. Slide 10: Specified Pools – Risks & Rewards

    Specified Pools – Risks & Rewards Fannie Mae 30yr Fixed Rate MBS 3.50% 4.00% (2012 Prod) (2011 Prod) Low Loan Balance Pools "Reward" Q1 Prepayment Speeds (1) 22% 28% Amortization Period relative to Generic 4.5x 3.6x Yield of LLB Pool - May 8, 2013 Price 2.72% 2.47% Yield of Generic Pool - May 8, 201

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