Bimini Capital Management : ― Press Release dated August 11, 2022 - Form 8-K

BIMINI CAPITAL MANAGEMENT ANNOUNCES SECOND QUARTER 2022 RESULTS

VEROBEACH,Fla.,(August11,2022)-BiminiCapitalManagement,Inc.(OTCQB:BMNM),("BiminiCapital,""Bimini,"orthe

"Company"), today announced results of operations for the three-month periodended June 30, 2022.

Second Quarter 2022 Highlights

●

Net loss of $1.2 million, or $0.11 per common share

●

Book value per share of $2.66

●

Company to discuss results on Friday, August 12, 2022, at 10:00 AM ET

Management Commentary

Commenting on the second quarter results, Robert E. Cauley,Chairman and Chief Executive Officer, said, "During thelatter part of the

second quarter of 2022 inflation datadrove a material change in Fedpolicy, interest rates and the outlook for the economy.Specifically,

the CPI for May, released inJune, was far abovemarket expectations.Survey measures of inflationexpectations, released on thesame

day, surged tomulti-decade highs. In July,the June CPI reading was released and wasagain well above market expectations. Equally

troubling, elevated inflation readings were very broad based, implying inflationary pressures have clearly spread from just those sectors

most exposed toCOVID-19 related supplyconstraints. This wasthe catalyst forthe Fed topivot even moreforcefully than theydid during

late 2021/early 2022, demonstrated by the Fed increasing theFed Funds rate by 200 basis points collectively atthe May, June and July

meetings.The market expects the Fed to continuing raising the Fed Funds rate by another 100 basis points by year-end.Increases in

the Fed Funds rate are likely to affect economic activity,and the Fed has acknowledged their actions may lead to a recession.Sectors

of the economy most sensitive to interest rates - such as housing - havealready started to slow.

"The market appearsto anticipate theFed will beable to containinflation and thatthe result willbe a contractionin economic growth.

This is reflected inyields for longer-term U.S.Treasuries. With theFed expected to increasethe Fed Funds rateby another 100 basis

points or more, shorter maturity U.S.Treasuries remain elevated, with the yield on the 2-yearU.S. Treasury Note yielding approximately

3.23% on August 10,2022.The combined effect -more increases to theFed Funds rate, andthe presumption inflation will ultimately

be contained by the Fed - albeit potentially at the expense of a recession, has caused the yield curve to invert whereby shorter maturity

U.S. Treasuriesyield more thanlong-term U.S. Treasuries.This condition maypersist for thebalance of 2022and into 2023.These

developmentswere detrimental to the performanceof Agency MBS securities andas the quarter came toan end the current coupon 30-

year fixed rate mortgage - a widely referenced benchmark - was tradingat very wide spreads to comparable duration treasuries - and

nearly as wide as the spreads seen during March of 2020 when the financialmarkets where at the peak of their distress.

"Given thesedevelopments in thefixed incomemarkets and thepoor performance ofAgency MBS inparticular Orchid IslandCapital

reported asecond quarter2022 lossof $60.1million andits shareholdersequity declinedfrom $592.4million to$506.4 million.The

market conditionsdescribed abovedrove theloss asagency MBSunderperformed comparableduration treasuriesand theOrchid's

hedge positions. The declinein shareholders equity maylead to reduced managementfees at Bimini Advisorsin the near-term since the

management fees area function ofOrchid's equity.Orchid also reducedits monthlydividend twice duringthe first quarterso monthly

dividend revenues onthe Company's approximately2.5 million shares declinedfrom approximately $402.3 thousandto approximately

$350.4 thousand during the secondquarter. Orchid, like Bimini, will focus onweathering the current marketconditions and looks forward

to capitalizing on the attractive returns that historically have become availableas markets settle.

BMNM Announces Second Quarter 2022 Results

Page 2

August 11, 2022

"As we discussed at the end of the first quarter, we took steps to reduce the MBSportfolio at Royal Palm in response to adverse market

conditions. In fact,the Agency MBS portfolioat Royal Palm Capitaldecreased during the secondquarter of 2022 by$16.1 million, the

combined effectof netsales of$12.3 millionmentioned above,$2.1 millionof paydownsand returnof investmenton thestructured

securities portfolio and $1.7 million of net realized and unrealizedmarket to market losses. As the second quarter of 2022 unfoldedour

intention wasto growour cash positionuntil wesaw clearevidence themarket hadstabilized before redeployingour cashto resume

growing the portfolio. To date, the AgencyMBS market has recoveredsomewhat during thethird quarter of 2022,and we will likelybegin

to rebuild the portfolio over the balance of the quarter."

Details of Second Quarter 2022 Results of Operations

The Company reported net loss of $1.2 million for the three-month period endedJune 30, 2022.Advisory service revenue for the

quarter was $3.3 million.We recorded interest and dividend income of $0.7 million and interest expenseon long-term debt of $0.3

million. We recorded a $1.0 million mark to market loss on our shares of Orchid commonstock and realized and unrealized losses of

$1.8 million on our MBS portfolio. The results for the quarter also included operatingexpenses of $2.1 million and an income tax benefit

of $0.1 million.

Management of Orchid Island Capital, Inc.

Orchid is managed and advised by Bimini.As Manager, Bimini is responsible for administering Orchid's business activities and day-to-

dayoperations.Pursuant totheterms ofthe managementagreement, BiminiAdvisors providesOrchidwith itsmanagement team,

including its officers, along with appropriate support personnel.

Bimini also maintains a common stockinvestment in Orchid which isaccounted for under the fair valueoption, with changes in fair value

recordedinthestatementofoperationsforthecurrentperiod.ForthethreemonthsendedJune30,2022,Bimini'sstatementof

operations included a fair value adjustment of $(1.0) million and dividends of $0.4 million from its investment in Orchid's common stock.

Also duringthe threemonths endedJune 30,2022, Biminirecorded $3.3million inadvisory servicesrevenue formanaging Orchid's

portfolio consisting of $2.6 million of management fees, $0.5 million in overhead reimbursementand $0.2 million in repurchase, clearing

and administrative fees.

Book Value Per Share

The Company's BookValuePer Share atJune 30, 2022was $2.66.The Company computesBook ValuePer Share bydividing total

stockholders'equitybythetotalnumberofsharesoutstandingoftheCompany'sClassACommonStock.AtJune30,2022,the

Company's stockholders' equity was $27.9 million, with 10,472,779 Class A Commonshares outstanding.

Capital Allocation and Return on Invested Capital

The Companyallocates capital betweentwo MBS sub-portfolios,the pass-through MBSportfolio ("PTMBS") andthe structured MBS

portfolio, consistingof interestonly ("IO")and inverseinterest-only ("IIO")securities.The tablebelow detailsthe changesto therespective

sub-portfolios during the quarter.

BMNM Announces Second Quarter 2022 Results

Page 3

August 11, 2022

Portfolio Activity for the Quarter

Structured Security Portfolio

Pass-Through

Interest-Only

Inverse Interest

Portfolio

Securities

Only Securities

Sub-total

Total

Market Value - March 31, 2022

$

51,643,964

$

3,019,549

$

15,689

$

3,035,238

$

54,679,202

Securities purchased

10,821,877

-

-

-

10,821,877

Securities sold

(23,096,853)

-

-

-

(23,096,853)

Losses on sales

(858,001)

-

-

-

(858,001)

Return of investment

n/a

(110,372)

(1,424)

(111,796)

(111,796)

Pay-downs

(1,980,029)

n/a

n/a

n/a

(1,980,029)

Premium lost due to pay-downs

(84,638)

n/a

n/a

n/a

(84,638)

Mark to market gains (losses)

(954,176)

124,615

(5,151)

119,464

(834,712)

Market Value - June 30, 2022

$

35,492,144

$

3,033,792

$

9,114

$

3,042,906

$

38,535,050

The tables below present theallocation of capital between therespective portfolios at June 30,2022 and March 31, 2022,and the return

on invested capital for each sub-portfoliofor the three-month period endedJune 30, 2022. Capital allocationis defined as the sum of the

market value of securities held, less associated repurchase agreement borrowings, plus cash and cash equivalents and restricted cash

associated with repurchase agreements.Capital allocated to non-portfolio assets is not included in the calculation.

The returns on investedcapital in the PTMBS and structured MBSportfolios were approximately (35.0)%and 5.9%, respectively, for the

second quarter of 2022.The combined portfolio generated a return on invested capital of approximately(19.2)%.

Capital Allocation

Structured Security Portfolio

Pass-Through

Interest-Only

Inverse Interest

Portfolio

Securities

Only Securities

Sub-total

Total

June 30, 2022

Market value

$

35,492,144

$

3,033,792

$

9,114

$

3,042,906

$

38,535,050

Cash equivalents and restricted cash

6,529,567

-

-

-

6,529,567

Repurchase agreement obligations

(36,925,999)

-

-

-

(36,925,999)

Total

(1)

$

5,095,712

$

3,033,792

$

9,114

$

3,042,906

$

8,138,618

% of Total

62.6%

37.3%

0.1%

37.4%

100.0%

March 31, 2022

Market value

$

51,643,964

$

3,019,549

$

15,689

$

3,035,238

$

54,679,202

Cash equivalents and restricted cash

7,983,873

-

-

-

7,983,873

Repurchase agreement obligations

(54,814,689)

-

-

-

(54,814,689)

Total

(1)

$

4,813,148

$

3,019,549

$

15,689

$

3,035,238

$

7,848,386

% of Total

61.3%

38.5%

0.2%

38.7%

100.0%

(1)

Invested capital includes the value of the MBS portfolio and cash equivalents andrestricted cash, reduced by repurchase agreement

borrowings.

BMNM Announces Second Quarter 2022 Results

Page 4

August 11, 2022

Returns for the Quarter Ended June 30, 2022

Structured Security Portfolio

Pass-Through

Interest-Only

Inverse Interest

Portfolio

Securities

Only Securities

Sub-total

Total

Interest income (net of repo cost)

$

260,498

$

57,910

$

986

$

58,896

$

319,394

Realized and unrealized (losses) gains

(1,896,815)

124,615

(5,151)

119,464

(1,777,351)

Hedge losses

(49,688)

n/a

n/a

n/a

(49,688)

Total Return

$

(1,686,005)

$

182,525

$

(4,165)

$

178,360

$

(1,507,645)

Beginning capital allocation

$

4,813,148

$

3,019,549

$

15,689

$

3,035,238

$

7,848,386

Return on invested capital for the quarter

(1)

(35.0)%

6.0%

(26.5)%

5.9%

(19.2)%

(1)

Calculated by dividing the TotalReturn by the Beginning Capital Allocation, expressed as a percentage.

Prepayments

For the second quarter of 2022,the Company received approximately $2.1 million in scheduledand unscheduled principal repayments

and prepayments, whichequated to a3-month constant prepaymentrate ("CPR") ofapproximately 20.0%for the secondquarter of 2022.

Prepayment rates on the two MBS sub-portfolios were as follows (in CPR):

PT

Structured

MBS Sub-

MBS Sub-

Total

Three Months Ended

Portfolio

Portfolio

Portfolio

June 30, 2022

17.2

22.9

20.0

March 31, 2022

18.5

25.6

20.9

December 31, 2021

13.7

35.2

21.1

September 30, 2021

15.5

26.9

18.3

June 30, 2021

21.0

31.3

21.9

March 31, 2021

18.5

16.4

18.3

Portfolio

The following tables summarize the MBS portfolio as of June 30, 2022and December 31, 2021:

($ in thousands)

Weighted

Percentage

Average

of

Weighted

Maturity

Fair

Entire

Average

in

Longest

Asset Category

Value

Portfolio

Coupon

Months

Maturity

June 30, 2022

Fixed Rate MBS

$

35,492

92.1%

4.03%

324

1-May-52

Interest-Only MBS

3,034

7.9%

2.82%

302

15-May-51

Inverse Interest-Only MBS

9

0.0%

5.45%

203

15-May-39

Total MBS Portfolio

$

38,535

100.0%

3.55%

322

1-May-52

December 31, 2021

Fixed Rate MBS

$

58,029

95.4%

3.69%

330

1-Sep-51

Interest-Only MBS

2,759

4.6%

2.86%

306

15-May-51

Inverse Interest-Only MBS

15

0.0%

5.90%

209

15-May-39

Total MBS Portfolio

$

60,803

100.0%

3.41%

329

1-Sep-51

BMNM Announces Second Quarter 2022 Results

Page 5

August 11, 2022

($ in thousands)

June 30, 2022

December 31, 2021

Percentage of

Percentage of

Agency

Fair Value

Entire Portfolio

Fair Value

Entire Portfolio

Fannie Mae

$

24,701

64.1%

$

39,703

65.3%

Freddie Mac

13,834

35.9%

21,100

34.7%

Total Portfolio

$

38,535

100.0%

$

60,803

100.0%

June 30, 2022

December 31, 2021

Weighted Average Pass Through Purchase Price

$

106.70

$

109.33

Weighted Average Structured Purchase Price

$

4.48

$

4.81

Weighted Average Pass Through Current Price

$

100.30

$

109.30

Weighted Average Structured Current Price

$

12.95

$

9.87

Effective Duration

(1)

3.909

2.103

(1)

Effective duration is theapproximate percentage changein price for a100 basis point changein rates.An effective durationof 3.909 indicates

that aninterest rateincrease of1.0% wouldbe expectedto causea 3.909%decrease inthe valueof theMBS inthe Company'sinvestment

portfolio at June 30, 2022.An effective duration of2.103 indicates that an interestrate increase of 1.0% wouldbe expected to causea 2.103%

decrease in the value of the MBS in the Company's investment portfolio at December 31, 2021. These figures include the structured securities in

the portfolio but notthe effect ofthe Company's hedges.

Effective duration quotesfor individual investmentsare obtained fromThe Yield Book,

Inc.

Financing and Liquidity

As ofJune 30, 2022,the Company had outstanding repurchase obligations of approximately $36.9 million with a netweighted average

borrowingrate of1.34%.These agreementswere collateralizedby MBSwith afair value,includingaccruedinterest,of approximately$38.5

million and cashof approximately $0.8 million. AtJune 30,2022, theCompany's liquidity was approximately $5.8 million, consisting of

unpledgedMBS and cashand cash equivalents.

We maypledgemore ofour structuredMBS aspart ofa repurchaseagreementfunding,but retaincash inlieu ofacquiringadditionalassets.

In this way,we can, ata modest cost, retainhigher levels of cash onhand and decrease the likelihood wewill have tosell assets ina

distressedmarket inorder toraise cash.Below isa list ofoutstandingborrowingsunder repurchaseobligationsat June 30,2022.

($ in thousands)

Repurchase Agreement Obligations

Weighted

Weighted

Total

Average

Average

Outstanding

% of

Borrowing

Amount

Maturity

Counterparty

Balances

Total

Rate

at Risk

(1)

(in Days)

Mirae Asset Securities (USA) Inc.

$

27,557

74.6%

1.33%

$

1,794

28

South Street Securities, LLC

4,451

12.1%

1.17%

150

18

Mitsubishi UFJ Securities (USA), Inc.

2,596

7.0%

1.93%

304

23

ED&F Man Capital Markets, Inc.

2,322

6.3%

1.13%

77

18

$

36,926

100.0%

1.34%

$

2,325

26

(1)

Equal to the fair value of securities sold (including accrued interest receivable)and cash posted as collateral,if any, minus thesum of repurchase

agreement liabilities,accrued interestpayable and securitiesposted by thecounterparty(if any).

BMNM Announces Second Quarter 2022 Results

Page 6

August 11, 2022

Summarized Consolidated Financial Statements

The following is a summarized presentationof the unaudited consolidatedbalance sheets as of June 30, 2022, and December31, 2021,

and the unauditedconsolidatedstatementsof operationsfor thesix and threemonths endedJune 30,2022 and2021.Amountspresented

are subjectto change.

BIMINI CAPITAL MANAGEMENT,INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited - Amounts Subject ToChange)

June 30, 2022

December 31, 2021

ASSETS

Mortgage-backed securities

$

38,535,050

$

60,803,144

Cash equivalents and restricted cash

6,529,567

9,812,410

Orchid Island Capital, Inc. common stock, at fair value

7,396,767

11,679,107

Accrued interest receivable

173,903

229,942

Deferred tax assets, net

36,351,770

35,036,312

Other assets

4,356,438

4,523,726

Total Assets

$

93,343,495

$

122,084,641

LIABILITIES AND STOCKHOLDERS' EQUITY

Repurchase agreements

$

36,925,999

$

58,877,999

Long-term debt

27,427,705

27,438,976

Other liabilities

1,106,396

2,767,816

Total Liabilities

65,460,100

89,084,791

Stockholders' equity

27,883,395

32,999,850

Total Liabilities andStockholders' Equity

$

93,343,495

$

122,084,641

Class A Common Shares outstanding

10,472,779

10,702,194

Book value per share

$

2.66

$

3.08

BMNM Announces Second Quarter 2022 Results

Page 7

August 11, 2022

BIMINI CAPITAL MANAGEMENT,INC.

CONSOLIDATED STATEMENTSOF OPERATIONS

(Unaudited - Amounts Subject to Change)

Six Months Ended June 30,

Three Months Ended June 30,

2022

2021

2022

2021

Advisory services

$

6,407,741

$

4,211,221

$

3,332,379

$

2,185,812

Interest and dividend income

1,636,110

2,201,257

742,441

1,084,544

Interest expense

(663,720)

(570,309)

(376,412)

(280,903)

Net revenues

7,380,131

5,842,169

3,698,408

2,989,453

Other expense

(9,223,396)

(1,821,883)

(2,865,092)

(2,480,283)

Expenses

4,138,351

3,481,004

2,112,872

1,724,421

Net (loss) income before income tax (benefit) provision

(5,981,616)

539,282

(1,279,556)

(1,215,251)

Income tax (benefit) provision

(1,315,458)

168,638

(92,982)

(295,465)

Net (loss) income

$

(4,666,158)

$

370,644

$

(1,186,574)

$

(919,786)

Basic and Diluted Net Income (Loss) Per Share of:

CLASS A COMMON STOCK

$

(0.44)

$

0.03

$

(0.11)

$

(0.08)

CLASS B COMMON STOCK

$

(0.44)

$

0.03

$

(0.11)

$

(0.08)

Three Months Ended June 30,

Key Balance Sheet Metrics

2022

2021

Average MBS

(1)

$

46,607,126

$

70,924,730

Average repurchase agreements

(1)

45,870,344

72,240,999

Average stockholders' equity

(1)

28,513,181

35,318,386

Key Performance Metrics

Average yield on MBS

(2)

3.36%

3.26%

Average cost of funds

(2)

0.63%

0.17%

Average economic cost of funds

(3)

2.25%

4.09%

Average interest rate spread

(4)

2.73%

3.09%

Average economic interest rate spread

(5)

1.11%

(0.83)%

Summarized Consolidated Financial Statements

(1).

Average MBS,repurchase agreementsand stockholders'equity balancesare calculatedusing two datapoints, thebeginning andending balances.

(2).

Portfolio yields andcosts offunds arecalculated basedonthe averagebalances ofthe underlyinginvestment portfolio/repurchase agreement

balances andare annualizedfor the quarterlyperiods presented.

(3).

Represents interest cost of our borrowings and the effect of derivative agreements attributed to the period related to hedging activities,divided by

average repurchaseagreements.

(4).

Average interestrate spread iscalculated bysubtractingaverage costof funds fromaverage yieldon MBS.

(5).

Average economicinterest ratespread is calculatedby subtractingaverage economiccost of fundsfrom averageyield on MBS.

BMNM Announces Second Quarter 2022 Results

Page 8

August 11, 2022

About Bimini Capital Management, Inc.

Bimini Capital Management,Inc. invests primarilyin, but is not limited to investingin, residentialmortgage-relatedsecurities issuedby the

Federal NationalMortgage Association(Fannie Mae), the FederalHome Loan Mortgage Corporation(Freddie Mac) and the Government

National Mortgage Association(Ginnie Mae). Its objective is to earn returns on the spread between the yieldon its assets and itscosts,

including the interest expense onthe fundsit borrows.In addition, Biminigenerates a significant portion ofits revenue servingas the

manager ofthe MBS portfolioof Orchid IslandCapital,Inc.

Forward Looking Statements

Statementshereinrelatingto mattersthat arenot historicalfactsare forward-lookingstatementsas definedin thePrivateSecuritiesLitigation

Reform Act of 1995. The reader is cautioned thatsuch forward-lookingstatements are based on informationavailable at the time and on

management'sgood faithbeliefwith respectto futureevents,and aresubjectto risksand uncertaintiesthat couldcause actualperformance

or results todiffer materiallyfrom those expressedin such forward-lookingstatements.Importantfactors thatcould causesuch differences

aredescribedinBiminiCapitalManagement,Inc.'sfilingswiththeSecuritiesandExchangeCommission,includingBiminiCapital

Management, Inc.'s mostrecent Annual Report onForm 10-Kand Quarterly Reportson Form10-Q. BiminiCapital Management, Inc.

assumes no obligation to update forward-looking statements to reflect subsequent results, changes in assumptions or changes inother

factors affectingforward-lookingstatements.

Earnings Conference Call Details

An earningsconferencecall andlive audiowebcastwill behosted Friday,August 12,2022, at10:00 AMET. Participantscan receivedial-in

informationvia emailby followingthe link:

https://ige.netroadshow.com/registration/q4inc/11341/bimini-capital-second-quarter-earnings-conference-call/

AliveaudiowebcastoftheconferencecallcanbeaccessedviatheinvestorrelationssectionoftheCompany'swebsiteat

https://ir.biminicapital.comor athttps://events.q4inc.com/attendee/286429349,and anaudio archive ofthe webcast willbe available for

approximatelyone year.

CONTACT:

Bimini CapitalManagement,Inc.

Robert E.Cauley, 772-231-1400

Chairmanand ChiefExecutiveOfficer

https://ir.biminicapital.com