Family Ties on Bimini Capital Board Raise Governance Questions Amid Market Volatility

Vero Beach, FL – November 6, 2025 – Bimini Capital Management, Inc. (OTCQB: BMNM) announced the resignation of long-serving director Frank E. Jaumot and the appointment of Ashley B. Griffith as his replacement. While seemingly a routine transition, a closer look reveals potential conflicts of interest and occurs at a precarious time for the mortgage-backed securities (MBS) market, raising questions about corporate governance and strategic direction.

Jaumot, who has been associated with Bimini for over two decades and served as a director since 2009, departs leaving a void filled by Griffith, a veteran of institutional sales currently at Hovde Group. Griffith’s extensive experience – spanning Compass Point, Sandler O’Neill, Evercore, and Fox-Pitt, Kelton – appears to align with Bimini’s investment focus. However, the relationship between Griffith and existing Bimini director Robert Dwyer – Griffith is Dwyer’s son-in-law – is drawing scrutiny from corporate governance observers.

“Family connections on boards aren’t inherently problematic,” says one anonymous corporate governance consultant. “However, transparency is critical. The lack of disclosure regarding this relationship in the initial announcement raises eyebrows.” Bimini’s filings to date do not explicitly mention the familial tie, leaving investors to piece together the connection through public records.

This lack of transparency is concerning, particularly given the increasing complexity of the MBS market and the potential for conflicts of interest. Bimini operates a unique structure, managing portfolios for its own subsidiaries, Royal Palm Capital, LLC, and serving as the external manager of publicly traded REIT, Orchid Island Capital, Inc. (NYSE: ORC). This dual role demands rigorous oversight and impartial decision-making.

“The board has a fiduciary duty to all shareholders,” explains another anonymous financial analyst specializing in REITs. “Any potential conflict, whether real or perceived, needs to be addressed proactively. The relationship between Griffith and Dwyer needs careful consideration to ensure decisions are made in the best interest of all stakeholders, not just related parties.”

Navigating a Volatile Market

The board change occurs against a backdrop of increasing volatility in the MBS market. Rising interest rates and economic uncertainty are putting pressure on mortgage REITs like Orchid Island Capital. Bimini, as Orchid’s external manager, is directly impacted by these conditions. Recent financial filings indicate Orchid Island Capital is facing headwinds, requiring careful portfolio management and risk mitigation strategies.

“The MBS market is incredibly sensitive to interest rate fluctuations,” says an anonymous portfolio manager familiar with the sector. “Companies like Orchid Island Capital need to be nimble and adapt quickly to changing conditions. Bimini’s role in guiding that strategy is critical.”

While Orchid Island Capital has maintained relative stability, analysts point to the challenges inherent in its business model. The REIT relies heavily on the spread between the yield on its assets and its borrowing costs. A narrowing spread, coupled with rising interest rates, could significantly impact profitability.

“Bimini’s expertise in managing these complex portfolios is a key driver of Orchid’s performance,” says the anonymous REIT analyst. “The board change shouldn’t disrupt that expertise, but it does warrant increased scrutiny.”

Succession Planning and Future Outlook

Bimini maintains that the board change is part of a natural evolution and reflects a commitment to strong leadership. Jaumot’s departure marks the end of an era, but the company believes Griffith brings a fresh perspective and valuable experience to the table.

“We are confident that Ashley will be a valuable asset to the board,” stated a Bimini spokesperson. “His deep understanding of the financial markets and his track record of success will contribute to our continued growth and success.”

However, the lack of transparency surrounding the familial connection remains a point of concern. Corporate governance experts emphasize the importance of robust conflict of interest policies and full disclosure of any related party transactions.

Moving forward, Bimini needs to address these concerns and demonstrate a commitment to transparency and accountability. The company also needs to navigate the challenges of a volatile MBS market and ensure that Orchid Island Capital remains on solid footing.

The coming months will be critical for Bimini. Investors will be closely watching the company’s performance and its ability to navigate the turbulent waters of the mortgage-backed securities market. The board’s response to the questions raised by the recent appointment will be a key indicator of its commitment to sound corporate governance and long-term shareholder value.

Ultimately, the success of Bimini will depend on its ability to maintain a strong leadership team, adapt to changing market conditions, and prioritize the interests of all stakeholders. The spotlight is now on the board to demonstrate its commitment to these principles.