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Orchid Island Capital Announces November 2018 Monthly Dividend and October 31, 2018 RMBS Portfolio Characteristics

November 14, 2018

-- November 2018 Monthly Dividend of $0.08 Per Share -- RMBS Portfolio Characteristics as of October 31, 2018 -- Repurchased 966,484 shares through stock repurchase plan. -- Next Dividend Announcement Expected December 10, 2018

VERO BEACH, Fla., Nov. 14, 2018 (GLOBE NEWSWIRE) -- Orchid Island Capital, Inc. (the “Company”) (NYSE:ORC) announced today that the Board of Directors (the “Board”) declared a monthly cash dividend for the month of November 2018. The dividend of $0.08 per share will be paid December 10, 2018, to holders of record on November 30, 2018, with an ex-dividend date of November 29, 2018. The Company plans on announcing its next dividend after the Board’s meeting on December 10, 2018.

The Company intends to make regular monthly cash distributions to its stockholders. In order to qualify as a real estate investment trust (“REIT”), the Company must distribute annually to its stockholders an amount at least equal to 90% of its REIT taxable income, determined without regard to the deduction for dividends paid and excluding any net capital gain. The Company will be subject to income tax on taxable income that is not distributed and to an excise tax to the extent that a certain percentage of its taxable income is not distributed by specified dates. The Company has not established a minimum distribution payment level and is not assured of its ability to make distributions to stockholders in the future.

As of November 14, 2018, the Company had 51,072,684 shares outstanding, including 153,794 shares repurchased pursuant to the Company’s stock repurchase program through that date that have not yet settled. At September 30, 2018, the Company had 52,039,168 shares outstanding.

RMBS Portfolio Characteristics

Details of the RMBS portfolio as of October 31, 2018 are presented below. These figures are preliminary and subject to change. The information contained herein is an intra-quarter update created by the Company based upon information that the Company believes is accurate:

-- RMBS Valuation Characteristics -- RMBS Assets by Agency -- Investment Company Act of 1940 (Whole Pool) Test Results -- Repurchase Agreement Exposure by Counterparty -- RMBS Risk Measures

About Orchid Island Capital, Inc.

Orchid Island Capital, Inc. is a specialty finance company that invests in Agency RMBS that are either traditional pass-through Agency RMBS or structured Agency RMBS. Orchid Island Capital, Inc. has elected to be taxed as a REIT for federal income tax purposes.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements include, but are not limited to, statements about the Company’s distributions. These forward-looking statements are based upon Orchid Island Capital, Inc.’s present expectations, but these statements are not guaranteed to occur. Investors should not place undue reliance upon forward-looking statements. For further discussion of the factors that could affect outcomes, please refer to the “Risk Factors” section of the Company’s Form 10-K for the year ended December 31, 2017.

RMBS Valuation Characteristics ($ in thousands) --------------- - --------- - --------- ------- - ------- ------ ------ --- -------- ------- ------- - --------- - --------- RealizedRealized Oct Aug - 2018 Oct Net Weighted CPR 2018 Modeled Modeled CPR Interest Interest % Weighte Average (1-Month(3-Month Rate Rate d ) ) Current Fair of Current Average Maturity (Reporte(Reporte Sensitivit Sensitivit d d y y Type Face Value(1) Portfoli Price Coupon GWAC Age (Months) in Nov) in Nov) (-50 BPS) (+50 BPS) o (2) (2) --------------- - --------- - --------- ------- - ------- ------ ------ --- -------- ------- ------- - --------- - --------- ARM RMBS ARM RMBS $ 1,356 $ 1,431 0.04 % $ 105.55 4.75 % 5.19 % 168 193 0.13 % 0.59 % $ 8 $ (7 ) --------------- - --------- - --------- ----- - - ------- ---- - ---- - --- -------- ----- - ----- - - ------- - - ------- - Total ARM RMBS 1,356 1,431 0.04 % 105.55 4.75 % 5.19 % 168 193 0.13 % 0.59 % 8 (7 ) --------------- - --------- - --------- ----- - - ------- ---- - ---- - --- -------- ----- - ----- - - ------- - - ------- - Fixed Rate RMBS Fixed Rate CMO 732,772 749,098 21.37 % 102.23 4.27 % 4.61 % 8 350 6.70 % 7.23 % 8,043 (12,496 ) --------------- - --------- - --------- ----- - - ------- ---- - ---- - --- -------- ----- - ----- - - ------- - - ------- - Fixed Rate CMO 732,772 749,098 21.37 % 102.23 4.27 % 4.61 % 8 350 6.70 % 7.23 % 8,043 (12,496 ) Total --------------- - --------- - --------- ----- - - ------- ---- - ---- - --- -------- ----- - ----- - - ------- - - ------- - 15yr 3.5 2,840 2,846 0.08 % 100.22 3.50 % 3.83 % 61 118 23.91 % 9.42 % 55 (54 ) 15yr 4.0 810,434 827,628 23.61 % 102.12 4.00 % 4.52 % 5 173 5.98 % 2.46 % 15,966 (16,828 ) --------------- - --------- - --------- ----- - - ------- ---- - ---- - --- -------- ----- - ----- - - ------- - - ------- - 15yr Total 813,274 830,474 23.69 % 102.11 4.00 % 4.51 % 6 172 6.04 % 5.02 % 16,021 (16,882 ) --------------- - --------- - --------- ----- - - ------- ---- - ---- - --- -------- ----- - ----- - - ------- - - ------- - 20yr 4.0 203,040 206,265 5.89 % 101.59 4.00 % 4.47 % 18 219 6.34 % 8.29 % 4,915 (5,029 ) 20yr 4.5 18,723 19,321 0.55 % 103.20 4.50 % 5.13 % 7 233 0.33 % 13.50 % 320 (390 ) --------------- - --------- - --------- ----- - - ------- ---- - ---- - --- -------- ----- - ----- - - ------- - - ------- - 20yr Total 221,763 225,586 6.44 % 100.39 4.04 % 4.52 % 17 220 5.83 % 8.73 % 5,235 (5,419 ) --------------- - --------- - --------- ----- - - ------- ---- - ---- - --- -------- ----- - ----- - - ------- - - ------- - 30yr 4.0 309,409 310,606 8.86 % 100.39 4.00 % 4.48 % 20 337 2.86 % 4.56 % 8,542 (9,610 ) 30yr 4.5 1,031,528 1,065,818 30.41 % 103.32 4.50 % 4.92 % 13 345 7.00 % 7.58 % 22,387 (27,127 ) 30yr 5.0 168,487 178,126 5.08 % 105.72 5.00 % 5.50 % 8 351 5.68 % 6.45 % 3,121 (3,890 ) --------------- - --------- - --------- ----- - - ------- ---- - ---- - --- -------- ----- - ----- - - ------- - - ------- - 30yr Total 1,509,424 1,554,550 44.35 % 102.99 4.45 % 4.90 % 14 344 6.00 % 7.16 % 34,050 (40,627 ) --------------- - --------- - --------- ----- - - ------- ---- - ---- - --- -------- ----- - ----- - - ------- - - ------- - Total Fixed 3,277,233 3,359,708 95.84 % 102.52 4.27 % 4.71 % 11 294 6.16 % 7.00 % 63,349 (75,424 ) Rate RMBS --------------- - --------- - --------- ----- - - ------- ---- - ---- - --- -------- ----- - ----- - - ------- - - ------- - Total Pass 3,278,589 3,361,139 95.88 % 102.52 4.27 % 4.71 % 11 294 6.15 % 6.99 % 63,357 (75,431 ) Through RMBS --------------- - --------- - --------- ----- - - ------- ---- - ---- - --- -------- ----- - ----- - - ------- - - ------- - Structured RMBS Interest-Only 740,822 121,460 3.48 % 16.36 3.71 % 4.30 % 60 249 9.46 % 10.28 % (12,127 ) 8,120 Securities Inverse Interest-Only 231,414 22,415 0.64 % 9.69 2.85 % 4.86 % 52 299 8.88 % 11.20 % 2,822 (3,206 ) Securities --------------- - --------- - --------- ----- - - ------- ---- - ---- - --- -------- ----- - ----- - - ------- - - ------- - Total 972,236 143,875 4.12 % 14.80 3.51 % 4.43 % 58 261 9.32 % 10.51 % (9,305 ) 4,914 Structured RMBS --------------- - --------- - --------- ----- - - ------- ---- - ---- - --- -------- ----- - ----- - - ------- - - ------- - Total Mortgage $ 4,250,825 $ 3,505,014 100.0 % 4.10 % 4.65 % 22 287 6.88 % 7.87 % $ 54,052 $ (70,517 ) Assets --------------- - --------- - --------- ----- - - ------- ---- - ---- - --- -------- ----- - ----- - - ------- - - ------- -

Interest Interest Average Hedge Rate Rate Notional Period Sensitivit Sensitivity y Hedge Balance End (-50 BPS) (+50 BPS)(1) (1) ---------------------- ------------ ----------- - --------- - ------------ Eurodollar Futures (1,725,000 ) Feb-2020 $ (17,250 ) $ 17,250 Swaps (1,260,000 ) Oct-2020 (13,477 ) 13,477 5-Year Treasury Future (165,000 ) Dec-2018(3) (3,630 ) 4,594 TBA (500,000 ) Nov-2018 (13,801 ) 16,258 Swaptions (850,000 ) Mar-2028 (5,031 ) 24,820 ---------------------- ---------- - ----------- - ------- - - ------------ Hedge Total (4,500,000 ) $ (53,189 ) $ 76,399 ---------------------- ---------- - ----------- - ------- - - ------------ Rate Shock Grand Total $ 863 $ 5,882 ---------------------- ------------ ----------- - ------- - - ------------

(1) Amounts in the tables above exclude assets with a fair value of approximately $13.6 million sold in October 2018, which settle in November 2018.(2) Modeled results from Citigroup Global Markets Inc. Yield Book. Interest rate shocks assume instantaneous parallel shifts and horizon prices are calculated assuming constant LIBOR option-adjusted spreads. These results are for illustrative purposes only and actual results may differ materially.(3) Five year treasury futures contracts were valued at prices of $112.38 at October 31, 2018. The notional contract value of the short position was $185.4 million.

RMBS Assets by Agency Investment Company Act of 1940 Whole Pool Test ($ in thousands) ($ in thousands) ---------------------- - --------- ------- ---------------------- - --------- ------- Percenta Percenta ge ge Fair of Fair of Asset Category Value(1) Portfoli Asset Category Value(1) Portfoli o o ---------------------- - --------- ------- ---------------------- - --------- ------- As of October 31, 2018 As of October 31, 2018 Fannie Mae $ 1,983,016 56.6 % Non-Whole Pool Assets $ 1,116,834 31.9 % Freddie Mac 1,517,102 43.3 % Whole Pool Assets 2,388,180 68.1 % ---------------------- - --------- ----- - Ginnie Mae 4,896 0.1 % Total Mortgage Assets $ 3,505,014 100.0 % ---------------------- - --------- ----- - ---------------------- - --------- ----- - Total Mortgage Assets $ 3,505,014 100.0 % ---------------------- - --------- ----- -

(1) Amounts in the tables above exclude assets with a fair value of approximately $13.6 million sold in October 2018, which settle in November 2018.

Borrowings By Counterparty ($ in thousands) ------------------------------------- - ------------- ------- ------ -------- ---------- WeighteWeighted d % of AverageAverage Total Total Repo Maturity Longest As of October 31, 2018 Borrowings(1) Debt Rate in Days Maturity ------------------------------------- - ------------- ------- ------ -------- ---------- J.P. Morgan Securities LLC $ 481,212 14.2 % 2.37 % 35 1/14/2019 RBC Capital Markets, LLC 447,484 13.4 % 2.41 % 46 1/30/2019 Mirae Asset Securities (USA) Inc. 369,342 11.1 % 2.29 % 10 11/23/2018 Wells Fargo Bank, N.A. 265,778 8.0 % 2.37 % 27 11/30/2018 Citigroup Global Markets Inc 239,712 7.2 % 2.40 % 19 11/28/2018 Mitsubishi UFJ Securities (USA), Inc 220,094 6.6 % 2.34 % 17 11/19/2018 ICBC Financial Services LLC 186,561 5.6 % 2.30 % 32 12/13/2018 Cantor Fitzgerald & Co 178,673 5.4 % 2.24 % 13 11/13/2018 ABN AMRO Bank N.V. 153,860 4.6 % 2.28 % 36 12/13/2018 ED&F Man Capital Markets Inc 121,029 3.6 % 2.25 % 9 11/9/2018 ING Financial Markets LLC 112,007 3.4 % 2.33 % 13 11/29/2018 FHLB-Cincinnati 98,013 2.9 % 2.30 % 1 11/1/2018 Natixis, New York Branch 89,660 2.7 % 2.55 % 18 11/23/2018 South Street Securities, LLC 80,063 2.4 % 2.35 % 28 11/29/2018 Guggenheim Securities, LLC 57,514 1.7 % 2.29 % 15 11/16/2018 Lucid Cash Fund USG LLC 53,383 1.6 % 2.43 % 15 11/15/2018 Bank of Montreal 49,342 1.5 % 2.37 % 14 11/14/2018 Daiwa Securities America Inc. 45,131 1.4 % 2.36 % 5 11/5/2018 ASL Capital Markets Inc. 41,197 1.2 % 2.26 % 14 11/19/2018 J.V.B. Financial Group, LLC 15,374 0.5 % 2.36 % 15 11/15/2018 Mizuho Securities USA, Inc 10,083 0.3 % 2.37 % 21 11/21/2018 Merrill Lynch, Pierce, Fenner & Smith 8,855 0.3 % 2.78 % 6 11/13/2018 Lucid Prime Fund, LLC 5,591 0.2 % 2.84 % 15 11/15/2018 Nomura Securities International, Inc. 5,442 0.2 % 2.40 % 51 12/21/2018 ------------------------------------- - ------------- ----- - ---- - -------- ---------- Total Borrowings $ 3,335,400 100.0 % 2.35 % 24 1/30/2019 ------------------------------------- - ------------- ----- - ---- - -------- ----------

(1) In October 2018, the Company sold assets with a fair value of approximately $13.6 million, which settle in November 2018 that collateralize approximately $13.2 million of repurchase agreements included in the table above.

Contact:

Orchid Island Capital, Inc.Robert E. Cauley3305 Flamingo Drive, Vero Beach, Florida 32963Telephone: (772) 231-1400

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