Bimini Capital Management, Inc. · OTC:BMNM
Bimini Capital Management — Bimini Mortgage Management — Investor Presentation (October 2005)
58 slides from Bimini Capital Management's investor presentation, Oct 5, 2005
Slide 1: Investor Presentation October 2005
Slide 2: Table of Contents
we We Opteum. Table of Contents FINANCIAL SERVICES Opteum Corporate Overview. Corporate Structure — Pending Merger with Bimini Mortgage Management. Page 3 COpteum Strengths. Regional Offices. Opteum Financial Overview... Opteum Products ... The Five Star Series The Five Star Series Expanded, a soien
Slide 3: Safe Harbor Statement
nk Safe Harbor Statement Opteum ‘These materials contain forward-looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. The reader is cautioned that such forward-looking statements are based on information available at the time and o
Slide 4: Corporate Overview
Opteum. FINANCIAL SERVICES CORPORATE OVERVIEW
Slide 5: Opteum Corporate Overview
Me Ink Opteum Corporate Overview Opteum * 1988 Peter Norden acquires Old Town Mortgage * 1989 Merger of Old Town Mortgage with First Builders Financial ( Marty Levine, President ) to create First Town Mortgage * First Town Mortgage grows as a retail banker — 500 employees; $1.6 Billion funded in 199
Slide 6: Opteum Corporate Overview: Bimini Mortgage Management
Opteum Corporate Overview Opteum BIMINI MORTGAGE MANAGEMENT * Jeffrey J. Zimmer Chairman, CEO and President. + NYSE: BMM; * Bimini is a REIT, which primarily invests in mortgage-related securities '* Began operations in 2003; * Definitive merger agreement with Opteum signed 9/28; NBIMINI
Slide 7: Proposed Corporate Structure
Proposed Corporate Structure Opteum Financial Services (A wholly owned taxable subsidiary) Opteum Mortgage Acceptance Corp.
Slide 8: Opteum Strengths
Opteum Strengths Opteum + Strong & experienced executive management team; Full spectrum origination channels - Retail, Wholesale & Conduit; Nationwide originations with geographic diversification; Originations for 2005" : $4.6 Billion; 2004: $4.6 Billion; and 2003: $2.8 Billion; 2002: $1.2 Billion I
Slide 9: Regional Offices
Regional Offices Opteum.
Slide 10: Financial Overview
Opteum. FINANCIAL SERVICES FINANGIAL OVERVIEW
Slide 11: Net Income Summary
a) teum. Net Income Summary Opteum i: cj
Slide 12: Production by Channel
Production by Channel Opteum, Volume Growth as of August 31, 2005 ptm Financial Sevces ‘Lean Production by Chanel tough August 39,2005 +2005 doseatoan preduston based en actu la hough August 31,2008,
Slide 13: Warehouse Capacity
Warehouse Capacity Uncommitted On/Off Bs ues Uncommited (On Demand onaon REC Commits 27312008 on Chase (1) Commies 1172972008, on ‘Colonia Bank Committed - Working Capital 902006 on Colona Bank Commies 902006 On Colonia Bank Uncommited (On Demand on Citigroup) Commie 2127/2006 On Bear Steams Uncommi
Slide 14: Opteum Products
4 we Ae Opteum. FINANCIAL SERVICES OPTEUM PRODUCTS Five Star Series - Credit Grade Alt ‘A’ Five Star Expanded Series - Credit Grade “A-” Five Star Second Lien Program = -_ Credit Grade Alt ‘A’
Slide 15: Opteum Products - Underwriting Overview
a“ Ink Opteum Products - Underwriting Overview Opteum *_ * FIVESTARSERIES” + 6 Documentation Types: - Full Documentation; ~ Stated Income / Verified Assets (SIVA); No Income / Verified Assets (NIVA); - Stated Income / Stated Assets (SISA); - No Income / No Assets (NINA); = No Income / No Employment
Slide 16: Opteum Products - Underwriting Overview
a“ Ink Opteum Products - Underwriting Overview Opteum *_ * FIVESTARSERIES” * Qualifying Ratios (Including Interest Only): LTV / CLTV >80%: 45%; 70.01-80%: 50% ; <=70%: 55% * Credit Score & History: - Minimum Credit Score is 620 for Primary Wage Earner, - Loan Amounts or Combined Loan Amounts > $1M r
Slide 17: Opteum Products - Underwriting Overview
nv ns Opteum Products - Underwriting Overview Opteum x" x FIVESTARSERIES™ om ‘+ Revolving / Installment: - <= 90% LTV; Disregard all lates; - > 90% LTV Revolving: Max 2x30 Non-Rolling Lates; ~ Installment: Max 1x30 Non-Rolling Lates in last 12 months. ‘* Appraisals: All loans require a full appraisa
Slide 18: Opteum Products - Underwriting Overview
Me i < Opteum Products - Underwriting Overview : pleum. > nm itl Pag FIVESTARSERIES” * Purchase, Rate Term and Cash Out Transactions; + 30-Year Fixed Rate and 2-Year and 3-Year Adjustable Rate mortgages: + Prepayment penalties: 1-3 year hard prepay; * Interest Only available on adjustable only; * Cr
Slide 19: Opteum Products - Underwriting Overview
Me nk Opteum Products - Underwriting Overview Opteum ti J FIVESTARSERIES , * Credit History Trade Lines: = 12 months mortgage / rental history required on all doc types; ~ Full, Limited: LTV >90% or loans >S$500K: 24 month credit history with minimum 2 trades paid as agreed, 1 with minimum 24 month
Slide 20: Opteum Products - Underwriting Overview
Ne # Opteum Products - Underwriting Overview Opteum > nm * * FIVESTASSERIES” kek A feresray tae * Maximum CLTV: 100% / max 1* lien = 80% CLTV; * Debt Ratios: 50%, will allow up to 55% debt to income ratio with compensating factors; + Mortgage Insurance: Not Required; + Appraisal Review. - For loan a
Slide 21: Opteum Products - Underwriting Guidelines
a“ Ink Opteum Products - Underwriting Guidelines Opteum «*« FIVESTARSERIES™ mor ‘SECOND LIEN PROGRAM + Purchase, Rate Term, Cash Out Transactions + 30 year Amortized due in 15 years; 15 year fixed Fully Amortized + Credit Requirements: - 2 years history, minimum 5 trades jinimum 12 months Mortgage /
Slide 22: Exception Process
M4 Aa Ine a teum. Exception Process Opteum The following exceptions on all products require management approval: Regional Underwriting Managers: Opteum’s Chief Credit Officers: * Debt to Income Ratios + Any exception to guideline on investor occupancy * Minimum trade lines + Purpose + Reserves + Occ
Slide 23: C&S Marketing Reports
C&S Marketing Reports Opteum. automated workflow process collateral risk assessment property & flood information services aluation services
Slide 24: The Opteum Zone
The Opteum Zone Opteum fori, - ane opreumzone OPTEUM’S AUTOMATED UNDERWRITING ENGINE Rules-based engine designed with logic, compensating factors, and risk grading OZ utilizes the S&P Levels for Risk Grading for loans under Jumbo A, Alt ‘A and A- Release Stage 1 - Pre-Qual released May 05 to wholesa
Slide 25: Opteum Mortgage Acceptance Corp. Securitizations Issued
Opteum. FINANCIAL SERVICES OPTEUM MORTGAGE ACCEPTANGE CORP. SECURITIZATIONS ISSUED
Slide 26: Opteum Mortgage Acceptance Corp - Securitizations thru August 2005
ss Ae Opteum. Opteum Mortgage Acceptance Corp - Securitizations thru August 2005 rma es ac 2004-1 «HMAC 20082 HMAC 20063 -—=—«HMAC 2004-4 HMAC 20088 ignite 8 tenner | 8° arian | seman | 8° stonnaasoo |e aaararine cone 208 ay 0.208 saris | namsr a0 | ose tae retin = s nsesnso | 5 asusmo | cusmmse | +
Slide 27: Opteum Mortgage Acceptance Corp - Securitizations thru August 2005
ss Ae Opteum. Opteum Mortgage Acceptance Corp - Securitizations thru August 2005 rma es ac 2004-1 «HMAC 20082 HMAC 20063 -—=—«HMAC 2004-4 HMAC 20088 ignite 8 tenner | 8° arian | seman | 8° stonnaasoo |e aaararine cone 208 ay 0.208 saris | namsr a0 | ose tae retin = s nsesnso | 5 asusmo | cusmmse | +
Slide 28: Fiscal 2005 Production Summary
Fiscal 2005 Production Summary se Opte + Through August 31, 2005, Opteum Closed 4.6 Billion Dollars of Residential Mortgages Product # of Loans Loan Amount % of Total FNMA / FHLMC 1,788 325,708,512 7.0% FHAIVA 1,170 170,623,779 3.7% Non-Conforming 749 239,263,601 5.2% Prime ARM 514 105,238,754 2.3%
Slide 29: Product Mix by Channel
Product Mix by Channel Opteum,
Slide 30: Issuance Summary
Issuance Summary Opteum. TOTAL SECURTTIZED ‘AMOUNT 68 Billion 47 Billion LOAN AMOUNT 230, 412 269,079 Fico 601 700 uv 780% 765% curv 247% 35.8% ARM m% 81% ‘%FIKED 28% 10% ‘SFR 80% 84% ‘condo 11% 10% 24 UNIT 9% o% PURCHASE 58% 65% [RATETERM REFI 2% Th ‘CASH-OUT REF 34% 28% PRIMARY RESIDENCE 32% 84% 2
Slide 31: Issuance Summary By Deal Name
Issuance Summary By Deal Name Me Opte Name UPB Issue Net WALTV WACLTV WAFICO ‘Amount wac HMAC 2004-1 | 309,846,147 5.634 81.64 8467 683 HMAC 2004-2 | 387,791,245 5.296 77.35 81.32 692 HMAC 2004-3 [417,055,302 5.244 77.00 81.89 682 HMAC 2004-4 | 410,125,325 5.620 79.60 8472 690 HMAC 2004-5 [413,874,7
Slide 32: Katrina Exposure
Me mans Katrina Exposure Opteum ALL STATES' AL, LA, MS ONLY Investor Balance Loan Balance of Deal Name unt Balance vmact | 4 | soza2131 HMAC 1 4 | so2iziai_| 180,178,95600 | 0.270% HMac2 | 13 | 90564834 HMAC 2 7 _[_a7sisoare | a7ss7ia7i00 | 062% wMaca |i _| 172,085.34 HMAC 3 8 | s6e260.41 | 316621,5
Slide 33: Collateral Detail - thru August 2005
se Ae e Opteum Collateral Detail - thru August 2005 Pana SESS Documentation Type | Percentage Fico Score Percentage Full Doc 2% 680+ 58% Stated incVerified Asset | 39% 660679 16% ‘Stated InciStated Asset | 25% 620-659 22% ‘No Ratio 4% 560-619 a NINA 10% 520579 0% LTV Distribution Percentage State Di
Slide 34: Security Performance
Me ant Security Performance rma es Name CPR © G0Day 90Day TotalDQ.— BK Fe REO 2004-1 17 | saat [04% | 000% | 1.09% | 312% | o9a% | 0.50% 2008-2 15 | 2443 | 02% | 00% | 1.06% | os7% | 126% | oe 20043 14 | 2625 [ o16% | 000% | ooe% | o6o% | 162% | 013% 20044 12 | 2728 | 000% | 000% | o7e% | osim | 116
Slide 35: Senior Management Bios
Opteum. FINANCIAL SERVICES SENIOR MANAGEMENT Bios
Slide 36: Senior Management Bios: Peter Norden
Senior Management Bios Opteum Peter Norden Chairman, Chief Executive Officer, and President Peter R. Norden has a long established track record inthe mortgage banking industy. In 1975, hhe began his career asa senior auctor for Newark, N.J-based Touche Ross and Company, ‘where he specialized in mort
Slide 37: Senior Management Bios: Martin J. Levine
Senior Management Bios Opteum. Martin J. Levine Executive Vice President and Chief Operations Officer Marin J. Levine. @ Certifed Public Accountant, has an extensive backoround with major fs Including Touche Ross end Company. Coopers and Lybrand. Kenneth Leventhal and ‘Company and Pan American Prope
Slide 38: Senior Management Bios: Rick E. Floyd
Me ne Senior Management Bios Opteum Rick E. Floyd Executive Vice President and National Production Manager Rick E. Floyd ined Opteum Financial Services in 200' (under the Homestar Mortgage Services name). As @ partner operating inthe capacity of Executive Vice President / National Production Manage.
Slide 39: Senior Management Bios: Frank Plenskofski
Senior Management Bios Opteum Frank Plenskofski Chief Financial Officer Frank Plenskotsl, a Certifed Public Accountant. began his accomplished career inthe mortgage industry as ‘an aud manager with Laventhal & Horwath in Philadelphia, Pa. After fve years inthe fed, he was offered a postion as the Se
Slide 40: Senior Management Bios: Timothy P. O'Neill
Ms % Opteum Senior Management Bios wc os Timothy P. O'Neill Chief Accounting Officer Tim O'Nells @ Certified Pubic Accountant who has wide range of experience inthe fhancial world, He began his career working for publ accounting firms and an intematonal manufacturer of art q ‘supplies. Evertually, h
Slide 41: Senior Management Bios: Jeff Pancer
Senior Management Bios Opteum Jeff Pancer Senior Vice President — Capital Markets JetfPancer has been with Opteum since June 1999 (under the Homestar Motgage Services name) [As Senior VP — Secondary Marketing, he i respensile for hedging morteage pipelines, providing dally bricing ofall mortgage pro
Slide 42: Senior Management Bios: Mary Glass-Schannault
Senior Management Bios Opteum J Mary Glass-Schannault Managing Director of Structured Finance Senior Vice President ‘Mary Glass-Schannaut has been with Opteum since October 2002 (formerly Homestar Morgage Services), Ms, Schaunnaut is recognized in the mortgage industry fr being Innovative and knowle
Slide 43: Senior Management Bios: Grace Currid
Senior Management Bios Opteum Grace Currid Senior Vice President Chief Credit Officer Grace Curid serves as Senior Vice President and Chief Crest Ofer. She is responsible for ‘managing all aspects of Opteum's lending and creat policies and procedures. As part of this responstity, she also manages th
Slide 44: Senior Management Bios: Bela M. Donine
Ms .% yk Senior Management Bios Opteum $ ‘le Bela M Donine Vice President Chief Credit Officer - Conduit Prior to joining Opteum Funding formerly Homestar). Ms. Donine was most recently the Senior Vice President - Underwsing / Credit and Chief Credit Offcer for Impac Funding Coxpaation since its inc
Slide 45: Opteum Product Matrices
Opteum. FINANCIAL SERVICES OPTEUM PRODUCT MATRICES
Slide 46: Five Star Series Product Matrix
open ee amas ces FIVESTARSERIES a = erer lane 1) ee et) | Se | =) ee | ee fea ee ee | ee 1) B/R RB) RR) eR |e Be) Re | eR ae ee =| RR | eR ee eo eee ees e | | eR pA 2S | wR ee ge eel ee ae ae aa ae ee oe BoE in| etm etts[mtttinktte| *peemeneemteeetenne mee ee ee it] ee | Be ge | Be ge | Bet) ee A a
Slide 47: Five Star Series Product Matrix
3e B Opteum ny * FIVESTARSERIES’ rca ots ene Weta a) 4 | Sim | Sox tome | sox ttex | 1 | dem | Soe sox | Go oor | + | dsm | aoe oe | fox son 4 | Gem | aoe tome | coe tox | 1 | Some | soe see] coe aoe | dt | Some | tox sex | om sox Si eee a a a 4 | fat | aoe ook | com aoe |r| aw | Som om | Se soe ||
Slide 48: Five Star Series Product Matrix
HE * . Opteum 4X FIVESTARSERIES a 3 2 $923858 2929282|2 9999995 | 39998 $285958 2528293) S283898 S98298|2 $299958 2599293|2 i S992893 | S98999: ee ae — Se Sree te Rae tment ey net A Ae at eh Cee ont cog tart oe Ln At Betreiemmmen, geese mre Ant cane pa abe parry tr pe te
Slide 49: Five Star Series Product Matrix
ttt ik FIVESTARSERIES: scarey aK arenes eave ‘Owner Occupied 2nd Home ee ary + | foc | sox soox | Som te oe + | Soc | som toom | sox Toe oe + | Sar | toe “Sox | fom oom To 4 [oa | oe oe | ao zea | sox | ox sox | oom oy Fei | som | se sox | son moe som | aon aoe | Soe on ee iw | to fom | Toe se Te m_
Slide 50: Five Star Series Product Matrix
* * * * FIVESTARSERIES Cad 93) 3858)5 332/33836 Fy 358) 3283|5 $92) 2983)¢ Saas tyreacs as Nae ae Sas ee a ean ss dasa ae ca ae Rene
Slide 51: Five Star Series Product Matrix
“* FIVESTARSERIES’ * * com pn se a a a a Pr a sox foe | aoe come | ot | sso | tox tom | ome ome | ot | oor | tom ce | ome ne wx sox | oom som | + | ‘wr | oom oom | nm me | t | ‘tm | ‘ne ne | ns ne a rd Seo | ae ame “SoS prea MAGLI, Rg 20m in 1 eee. Ont? ih ie amen ont in Sa Fes Nr 3 a ANA yr
Slide 52: Credit (3x30) Program Highlights
‘CREDIT (3x30), PROGRAM HIGHLIGHTS. aleel2|slsels|slsels S55 || ISR el |; = | ge) 2) &) Be |S & | #2 | 8 me | 2 — 7 teaee: 90% | 600.000 ‘600 8% ‘600 ‘om | 600,000 820 f+ wosonmeee 2S SS || = RN ag) = | || = # | Se | Se rae esSeniret| | Se | 2 [eles mm go% | 400000 580 e5% | 400.000 ‘380 75% | 660,0
Slide 53: Oven,
2 Oven,
Slide 54: Oyci
Oyci Page
Slide 55: sin
& sin ‘set tnptoys taroners Settle eons neti ru) Fane Brower
Slide 56: Five Star Series Second Lien Program
2nd Home Full Boe to * FIVESTARSERIES” ‘SECOND LIEN PROGRAM
Slide 57: Five Star Series Second Lien Program
FE petretreeneire Oe Optetm see mm * FIVESTARSERIES” —e 4 ‘SECOND LIEN PROGRAM <a OT i -— ome Gaerne er Zee SS ee ‘rat ere and ee fA sn menses Sm tm ao no mings or teaver spent tp beng septa son ecm peat cnt Foe ato, [sec cyon santas soqapieastany con incur Neca natrpten goa antenann} wos ~ Peng mtt
Slide 58: Searchable text section of graphics shown above
Searchable text section of graphics shown above [G RAPHIC] [LOGO] INVESTOR PRESENTATION OCTOBER 2005 Ta ble of Contents Opteum Corporate Overview Corporate Structure – Pending Merger with Bimini Mortgage Management Opteum Strengths Regional Offices Opteum Financial Overview Opteum Products The Five
Bimini Mortgage Management — Investor Presentation (October 2005) on 6ix