v3.26.1
Note 14 - Related Party Transactions
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Related Party Transactions Disclosure [Text Block]

NOTE 14. RELATED PARTY TRANSACTIONS

 

Management Agreement

 

The Company is externally managed and advised by Bimini Advisors, LLC (the “Manager”) pursuant to the terms of a management agreement. The management agreement has been renewed through February 20, 2027 and provides for automatic one-year extension options thereafter and is subject to certain termination rights. Under the terms of the management agreement, the Manager is responsible for administering the business activities and day-to-day operations of the Company. The Manager receives a monthly management fee in the amount of:

 

 

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One-twelfth of 1.5% of the first $250 million of the Company’s month-end equity, as defined in the management agreement,

 

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One-twelfth of 1.25% of the Company’s month-end equity that is greater than $250 million and less than or equal to $500 million, and

 

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One-twelfth of 1.00% of the Company’s month-end equity that is greater than $500 million.

 

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

 

 

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A daily fee equal to the outstanding principal balance of repurchase agreement funding in place as of the end of such day multiplied by 1.5 basis points for the amount of aggregate outstanding principal balance less than or equal to $5 billion, and multiplied by 1.0 basis point for any amount of aggregate outstanding principal balance in excess of $5 billion, and

 

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A fee for the clearing and operational services provided by personnel of the Manager equal to $10,000 per month.

 

The Company is obligated to reimburse the Manager for any direct expenses incurred on its behalf and to pay the Manager the Company’s pro rata portion of certain overhead costs set forth in the management agreement. Should the Company terminate the management agreement without cause, it will pay the Manager a termination fee equal to three times the average annual management fee, as defined in the management agreement, before or on the last day of the term of the agreement.

 

Total expenses recorded for the management fee, allocated overhead and repurchase agreement trading, clearing and administrative services were approximately $10.2 million and $5.1 million for the six and three months ended June 30, 2026, respectively, and $7.4 million and $3.8 million for the six and three months ended June 30, 2025, respectively. At June 30, 2026 and December 31, 2025, the net amount due to affiliates was approximately $1.8 million and $1.7 million, respectively.

 

Other Relationships with Bimini

 

Robert Cauley, the Company’s Chief Executive Officer and Chairman of the Board of Directors, also serves as Chief Executive Officer and Chairman of the Board of Directors of Bimini and owns shares of common stock of Bimini. George H. Haas, IV, the Company’s Chief Financial Officer, Chief Investment Officer, Secretary and a member of the Board of Directors, also serves as the Chief Financial Officer, Chief Investment Officer and Treasurer of Bimini and owns shares of common stock of Bimini. In addition, as of June 30, 2026, Bimini owned 569,071 shares, or 0.3%, of the Company’s common stock.