v3.26.1
Note 14 - Segment Information
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

NOTE 14. SEGMENT INFORMATION

 

The Company’s business is organized into the asset management segment of Bimini Advisors, the asset management segment of TJIM, and the investment portfolio segment, with each representing a reportable segment. Our chief operating decision maker ("CODM") is our Chief Executive Officer. The results of each segment are regularly reviewed by the CODM to assess the performance of the segment and make decisions regarding the allocation of resources to the segments. The primary measure of segment performance used by the CODM is income (loss) before income taxes. Net revenues is also used to assess the financial performance of the segments and for purposes of allocating resources. The accounting policies of our three reportable business segments are the same as those described in Note 1.

 

The asset management segment of Bimini Advisors includes the investment advisory services provided by Bimini Advisors to Orchid and Royal Palm. As discussed in Note 2, the revenues of this asset management segment consist of management fees, overhead reimbursements and repurchase, clearing and administrative fees received pursuant to a management agreement with Orchid. Total revenues received under this management agreement for the six and three months ended June 30, 2026 were approximately $10.2 million and $5.1 million, respectively, accounting for approximately 74% and 70% of consolidated revenues. Total revenues received under this management agreement for the six and three months ended June 30, 2025 were approximately $7.4 million and $3.8 million, respectively, accounting for approximately 66% and 68% of consolidated revenues.

 

The asset management segment of TJIM includes discretionary and non-discretionary investment advisory services to institutional investors, high-net-worth individuals, retirement plans, sub advisory platforms, and foundations, in all cases attributable only to the operation of TJIM after April 1, 2026. Total revenues received under this segment for the three months ended June 30, 2026 were approximately $1.7 million, accounting for approximately 24% of consolidated revenues for that period.

 

The investment portfolio segment includes the investment activities conducted by Royal Palm. The investment portfolio segment receives revenue in the form of interest and dividend income on its investments.

 

The majority of our assets, revenues and expenses are directly associated with each respective business segment and are included in determining each segment's asset balance and operating results. Those assets, revenues and expenses that are not directly attributable to a particular business segment are included in the Corporate function. Corporate operating expenses are allocated to the reportable segments based on their proportional share of total revenues. As a result, the sum of each statement of operations line item for the three reportable segments and the Corporate function is equal to that same statement of operations line item for the consolidated entity. In addition, the sum of the total assets for the three reportable segments and the Corporate function is equal to the total assets of the consolidated entity.

 

Segment information for the six and three months ended  June 30, 2026 and 2025 is as follows:

 

(in thousands)

                        
  

Asset Management

                
  

Bimini

      

Investment

             

Six Months Ended June 30, 2026

 Advisors  TJIM(4)  Portfolio  Corporate  Eliminations  Total 

Advisory services, external customers

 $10,205  $1,728  $-  $-  $-  $11,933 

Advisory services, other operating segments(1)

  76   -   -   -   (76)  - 

Interest and dividend income

  -   10   1,781   -   -   1,791 

Total revenues

  10,281   1,738   1,781   -   (76)  13,724 

Interest expense(2)

  -   -   (842)  (995)  -   (1,837)

Net revenues

  10,281   1,738   939   (995)  (76)  11,887 

Other income (expense), net

  -   3   (494)  -   -   (491)

Operating expenses

  (102)  (1,120)  (46)  (7,303)  -   (8,571)

Allocated expenses(3)

  (5,405)  (878)  (1,020)  7,303   -   - 

Intercompany expenses(1)

  -   -   (76)  -   76   - 

Income (loss) before income taxes

 $4,774  $(257) $(697) $(995) $-  $2,825 

 

(in thousands)

                        
  

Asset Management

                
  

Bimini

      

Investment

             

Six Months Ended June 30, 2025

 Advisors  TJIM(4)  Portfolio  Corporate  Eliminations  Total 

Advisory services, external customers

 $7,393  $-  $-  $-  $-  $7,393 

Advisory services, other operating segments(1)

  81   -   -   -   (81)  - 

Interest and dividend income

  -   -   3,734   -   -   3,734 

Total revenues

  7,474   -   3,734   -   (81)  11,127 

Interest expense(2)

  -   -   (2,497)  (1,079)  -   (3,576)

Net revenues

  7,474   -   1,237   (1,079)  (81)  7,551 

Other income (expense), net

  -   -   (1,026)  -   -   (1,026)

Operating expenses

  (73)  -   (65)  (5,604)  -   (5,742)

Allocated expenses(3)

  (3,724)  -   (1,881)  5,605   -   - 

Intercompany expenses(1)

  -   -   (81)  -   81   - 

Income (loss) before income taxes

 $3,677  $-  $(1,816) $(1,078) $-  $783 

 

(in thousands)

                        
  

Asset Management

                
  

Bimini

      

Investment

             

Three Months Ended June 30, 2026

 Advisors  TJIM(4)  Portfolio  Corporate  Eliminations  Total 

Advisory services, external customers

 $5,078  $1,728  $-  $-  $-  $6,806 

Advisory services, other operating segments(1)

  20   -   -   -   (20)  - 

Interest and dividend income

  -   10   412   -   -   422 

Total revenues

  5,098   1,738   412   -   (20)  7,228 

Interest expense(2)

  -   -   (144)  (499)  -   (643)

Net revenues

  5,098   1,738   268   (499)  (20)  6,585 

Other income, net

  -   3   64   -   -   67 

Operating expenses

  (52)  (1,120)  (22)  (3,651)  -   (4,845)

Allocated expenses(3)

  (2,565)  (878)  (208)  3,651   -   - 

Intercompany expenses(1)

  -   -   (20)  -   20   - 

Income (loss) before income taxes

 $2,481  $(257) $82  $(499) $-  $1,807 

 

(in thousands)

                        
  

Asset Management

                
  

Bimini

      

Investment

             

Three Months Ended June 30, 2025

 Advisors  TJIM(4)  Portfolio  Corporate  Eliminations  Total 

Advisory services, external customers

 $3,811  $-  $-  $-  $-  $3,811 

Advisory services, other operating segments(1)

  40   -   -   -   (40)  - 

Interest and dividend income

  -   -   1,787   -   -   1,787 

Total revenues

  3,851   -   1,787   -   (40)  5,598 

Interest expense(2)

  -   -   (1,191)  (541)  -   (1,732)

Net revenues

  3,851   -   596   (541)  (40)  3,866 

Other income (expense), net

  -   -   (998)  -   -   (998)

Operating expenses

  (31)  -   (25)  (2,763)  -   (2,819)

Allocated expenses(3)

  (1,881)  -   (882)  2,763   -   - 

Intercompany expenses(1)

  -   -   (40)  -   40   - 

Income (loss) before income taxes

 $1,939  $-  $(1,349) $(541) $-  $49 

 

(1)

Includes fees paid by Royal Palm to Bimini Advisors for advisory services at an annualized rate of 1.5% of capital allocated to Royal Palm's MBS portfolio.

(2)

Includes interest on repurchase agreements in the Investment Portfolio column and long-term debt in the Corporate column.

(3)

Operating expenses are allocated based on each segment’s proportional share of total revenues.

(4)The activity and results of operations of TJIM prior to April 1, 2026, the closing date of the TJIM Acquisition, are not included.

 

Assets in each reportable segment as of June 30, 2026 and December 31, 2025 were as follows:

 

(in thousands)

                    
  

Asset Management

            
  

Bimini

      

Investment

         
  

Advisors

  

TJIM

  

Portfolio

  

Corporate

  

Total

 

June 30, 2026

 $2,668  $17,969  $37,936   5,793  $64,366 

December 31, 2025

  2,617   -   120,751   6,326   129,694 

 

As a result of the TJIM Acquisition, the composition of the Company’s business changed both from the perspective of how its capital is deployed and how it reports its results for its operating segments. The TJIM Acquisition required the deployment of a significant portion of the Company’s capital, including most of the capital deployed into the investment portfolio prior to the TJIM Acquisition.