Advisory Fees Rise as Bimini Earnings Fall

Operators running fee-based advisory firms should watch how portfolio marks offset acquisition-driven revenue growth.

Updated on Nov. 8, 2026 in Corporate Finance

Advisory Fees Rise as Bimini Earnings Fall

Bimini Capital Management reported third-quarter 2026 earnings of $0.10 per share, down from $0.18 a year earlier, as net income attributable to stockholders fell to $1,020,658 from $1,822,743. The company's advisory business expanded following its April 1, 2026 acquisition of an 80% stake in Tom Johnson Investment Management, LLC, which is relevant for operators tracking how small financial firms grow through acquisition.

Why it matters

Advisory revenue rose to $6,643,805 from $4,457,711, reflecting higher management fees tied to growth in Orchid Island Capital's average equity, while net other expense of $1,194,855 swung from net other income a year earlier. The shift shows that fee-based growth can coexist with weaker bottom-line results when investment-portfolio marks move against the company.

Advisory services revenue reached $6,643,805, up from $4,457,711 a year earlier, and TJIM contributed $1.69 million of third-quarter advisory revenue. Unrealized losses of $771,609 on mortgage-backed securities and U.S. Treasury securities and $876,370 on Orchid Island Capital common stock weighed on results.

The players

Bimini Capital Management

A small financial services holding company whose Bimini Advisors subsidiary manages a mortgage-backed securities portfolio and earns advisory fees.

Orchid Island Capital

A publicly traded mortgage REIT whose average equity drives the management fees paid to Bimini Advisors.

Tom Johnson Investment Management, LLC

An investment management firm in which Bimini acquired an 80% ownership stake in April 2026, adding advisory revenue.

The details

Bimini Advisors manages a mortgage-backed securities portfolio for Orchid Island Capital and provides related services, earning management fees tied to the size of that portfolio's equity base. The latest quarter's unrealized losses on securities and on Orchid Island stock were partly offset by $452,341 in gains on derivative instruments. Acquiring 80% of TJIM added a separate advisory revenue stream on top of the existing fee base.

April 1, 2026: Bimini acquired its 80% stake in Tom Johnson Investment Management, LLC.
Q3 2025: Prior-year quarter earnings of $0.18 per share were reported.
Q3 2026 (three months ended Sept. 30, 2026): Bimini reported $0.10 per share in earnings.

Market Landscape

Small listed asset managers are increasingly using acquisitions to diversify fee income away from a single managed portfolio. Bimini's TJIM deal follows that pattern, with advisory revenue now broadening beyond its Orchid Island mandate.

Operators of small financial firms should weigh whether acquisitions can add stable advisory fees that offset swings in investment-portfolio marks. Finance teams should track unrealized gains and losses separately from fee revenue when evaluating a company's earnings quality.

The takeaway

Fee income from an acquired advisory business can grow faster than total earnings when portfolio losses are large, so the gap between revenue growth and net income is the figure to monitor. Review the company's next quarterly filing to see whether TJIM's contribution holds at roughly $1.69 million per quarter.