BIMINI CAPITAL MANAGEMENT, INC. Annual Report - A Comprehensive Review

Discover how BIMINI CAPITAL MANAGEMENT, INC. navigated the past year. This report offers retail investors a clear, concise overview of the company's performance for the year ended December 31, 2025, highlighting its operations, financial health, and strategic direction.

1. Business Overview (What does this company do?)

Bimini Capital Management operates primarily in two core areas: Asset Management and managing its own Investment Portfolio. A significant part of their business involves Mortgage-Backed Securities (MBS), which are investments backed by pools of mortgages. They also provide essential advisory services to a related entity, Orchid Island Capital, specifically managing Royal Palm's MBS portfolio, for which they earn management fees.

2. Management Discussion (MD&A highlights)

Major Wins:

• Bimini Capital Management maintained strong advisory client relationships, ensuring a consistent stream of management fees from Orchid Island Capital.

Key Challenges:

• The company faces threatened litigation initiated in 2025. This legal action relates to a breach of representations and warranties concerning a past MBS sale. This challenge could result in potential costs and poses both a financial and reputational risk.

3. Risk Factors (Key risks that could hurt the stock price)

Investors should understand several critical risks:

• Interest Rate Swings: Changes in interest rates significantly impact the value of their MBS portfolio and borrowing costs, directly affecting profitability.
• Investment Strategy Execution: The success of their business hinges on their ability to select and manage investments effectively. A misstep in strategy could lead to underperformance.
• Availability of Attractive Investments: A competitive or illiquid market could limit their ability to find profitable investment opportunities, hindering growth.
• Mortgage Prepayment Rates: Unpredictable changes in homeowner prepayment behavior can affect the cash flows and value of their MBS.
• Legal and Regulatory Risks: The ongoing threatened litigation poses a direct financial and reputational risk. Additionally, changes in financial regulations or tax laws could impact their operations and profitability.
• Credit Risk: While MBS generally carry high ratings, a risk of default on the underlying mortgages always exists, which could impact portfolio value.
• Concentration Risk: A significant portion of their assets and revenue ties to MBS and the advisory relationship with Orchid Island Capital, making them susceptible to adverse developments in these areas.

Additional Relevant Information (Typical 10-K Disclosures)

Leadership or strategy changes

A significant subsequent event occurred on January 13, 2026, when Bimini Capital Management announced an agreement with Tom Johnson Investment Management LLC (TJIM).

Market trends or regulatory changes affecting them

Their tax exposure is primarily localized to Florida, where state taxes constitute their entire tax effect in certain categories. This geographic concentration means changes in Florida's tax laws could disproportionately impact their tax obligations. Furthermore, potential regulatory changes affecting the mortgage market or financial services industry could also influence their operations and compliance costs.