Orchid Island Capital Reports Q2 Earnings Turnaround Amid Portfolio Adjustments
Orchid Island Capital (NYSE:ORC) reported second-quarter earnings of $0.44 per share for the quarter ended June 30, 2026, marking a significant turnaround from a loss in the first quarter. The company's book value increased to $7.22 per share and total return improved to 6.2%, reversing a negative performance earlier in the year. The firm adjusted its portfolio modestly by shifting toward lower-coupon 30-year mortgage-backed securities, particularly those with coupons near par such as 5%, 5.5%, and 6%. Management emphasized that these changes were more of fine-tuning than major repositioning but noted a reduction in the average coupon by about six basis points. Amid rising interest-rate uncertainty, Orchid significantly increased its hedging coverage to protect against rate volatility. Hedge positions now cover 91% of repo funding compared with 72% at the end of Q1. The company added five-year and ten-year swaps as part of this strategy.
Tickers: $ORC
Topics: hedge_coverage mortgage-backed_securities real_estate_investment_trusts