Good morning and welcome to the Fourth Quarter 2013 Earnings Conference Call for Orchid Island Capital Incorporated. This call is being recorded today Thursday, February 20, 2014. At this time, the company would like to remind the listeners that statements made during today’s conference call relating to matters that are not historical facts are forward-looking statements subject to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. Listeners are cautioned that such forward-looking statements are based on information currently available on the management’s good faith, belief with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in such forward-looking statements. Important factors that could cause such differences are described in the company’s filings with the Securities and Exchange Commission, including the company’s most recent Annual Report on Form 10-K. The company assumes no obligation to update such forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking statements. Now I would like to turn the conference over to the company’s Chairman and Chief Executive Officer, Mr. Robert Cauley. Please go ahead, sir.

Thank you, operator. Last year may end up being the beginning of the end of the market environment we have (less lifts) since the end onset of the financial crisis in 2008. While no one would suggest it is all as well and our (plums) are behind us, clearly the economy has more, many to do before you’re back to the conditions that existed in 2006 or even 2007. The Federal Reserve today announced as it begin to remove the combination beginning in January of 2014. This process played out over several months starting in May of 2013 when former Fed Chairman, Ben Bernanke, then the Fed would start to taper it’s asset purchases of the near term if the economy continue to perform as it had recently. And the Chairman’s words, the economy’s performance was consistent with the Fed’s expectations when it announced the third round of quantitative easing or QE3 in the fall of 2012. The market reacted very strongly to the Chairman’s words and sold off violently. The market started to price – some increases in the Fed funds rate by the end of 2014. The Fed team is surprised by the market’s reaction and they attempted to reassure the markets that had no intention to raise the Fed’s fund rate near future. Nonetheless the markets sold off and the MBS market in particular was negatively impacted. The market has remained very sensitive to economic data suits and as market participants try to going inside into the Fed’s next move. As we all know the Fed commenced its tapering program in January of this year. The Fed announced another round in reductions through its asset purchases at the conclusion of its January meeting as well. From this point forward absent material erosion and economic data, it appears…

(Operator Instructions) And our first question comes from the line of David Walrod with Ladenburg. You may proceed with your question.

Good morning.

Good morning, Dave.

Just want to clarify a couple of things. You – when did lended the secondary offering in January closed?

It closed in two tranches, the first close on the 20th and then the (indiscernible) was exercised and closed on the 29th.

And you said that the assets were largely deployed by the end of January that’s fully levered or deployed?

Yes, substantially completed 100%.

Okay. Now in the fourth quarter you took that your capital allocation somewhat significantly towards the structured portfolio. Was that an anticipation of doing a deal or how should we think about how the capital was deployed now going forward, is it more closer to the 50:50 range or is it still favor the structured portfolio?

Hey David, this is Hunter. We did shift a little bit towards the end of the fourth quarter. We found some securities that we would like than more interested and we had a little more cash on hand than sitting idle than we typically care to have. So when we made that investment we had sense gone with the deployment of the proceeds would really come back to closer to where we were prior to those acquisitions. So a little more balance kind of 50:50 range. We have a little dry powder still left in the derivative structured securities and are just looking for opportunities I guess.

I’d just add what Hunter talked about some of the opportunities that we saw. Some of the inverse IOs we found that we could acquire very attractive yields, David, that we can see earlier in the year and so we could kind of replicate structured pass-through rates with the inverse IO rate.

Good, good. And then you gave us some good color on where book value was at the end of January. Can you just give us an idea of how that’s trended in February obviously not down anything specific?

Well a pretty good number as of January 31, it is now the market had rallied all the way through January and I believe Monday the 3rd was the low rates – recent low. Since then we have backed up some, these backup starts. My sense is that book value would not be materially different from where it was at month end. Rates have not moved much, mortgages had also tightened so when rates rally we had this best of both well where rates were rallied, mortgages were tightening, so really going up in price and kind of go a little choppy. So as we backed off you’ve seen them IOs have had a pretty decent run. So net-net I don’t know it will be materially unchanged.

Absolutely tightening as Bob alluded to as rates came down in the first part of this year, the first month and a week or so of this year. Absent the tightening we probably would have leaked off a little bit of book value because we are and have been at least empirically so hedged in such a way that we’re very much still braced for higher rates. But we’ve had some things go our way as well. Bob mentioned in his prepared remarks the specified pool pay-ups much of the proceeds we deployed in January and some of the portfolio turnover in the fourth quarter were used to buy those types of assets, they have had a great run and IOs continue to do very well which is part of the reason why we’ve taken a little time now from and staying slightly under invested from that front. So we have the portfolio I think where we wanted to be right now.

Okay. That’s great. Thanks. Thanks all. I appreciate it.

Thanks, Dave.

Thank you. (Operator Instructions) And I’m not showing any further questions in the queue. I would now like to turn the call back over to the speakers for any closing remarks.

Thank you, operator. We appreciate everybody taken the time to listen in to the extent somebody is going to listen to the replay and therefore maybe have a question later we will be available all day tomorrow, please give us a call in the office, number is 772-231-1400, otherwise we appreciate your time and we will talk to you again at the end of the first quarter. Thank you.

Ladies and gentlemen, thank you for participating in today’s conference. This does conclude the program and you may all disconnect. Have a great day everyone.