Cherry Hill Mortgage (NYSE: CHMI) Q4 2025 earnings and dividend update
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Cherry Hill Mortgage Investment Corporation reported stronger results for the fourth quarter of 2025, with GAAP net income of
Earnings available for distribution attributable to common stockholders were
The MSR portfolio had an unpaid principal balance of
Positive
- Stronger earnings: GAAP net income applicable to common stockholders rose to $5.3M ($0.14 per diluted share) in Q4 2025, up from $1.96M ($0.05 per diluted share) in Q3 2025.
- EAD improvement: Earnings available for distribution attributable to common stockholders increased to $3.9M, or $0.11 per diluted share, from $3.3M, or $0.09 per diluted share, quarter over quarter.
Negative
- None.
Insights
Q4 showed higher income, stable dividends and modest book value progress.
Cherry Hill Mortgage posted GAAP net income of
Performance reflected
GAAP book value stood at
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 25, 2026
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation)
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Commission File Number:
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(IRS Employer Identification No.)
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(Address of principal executive offices, including zip code)
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this
chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new
or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which
registered
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| Item 2.02. |
Results of Operations and Financial Condition.
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On February 25, 2026, Cherry Hill Mortgage Investment Corporation (the “Company”) reported its results of operations for the quarter
ended December 31, 2025. A copy of the press release is furnished as Exhibit 99.1.
The information in this Current Report on Form 8-K, including the exhibit attached hereto, is being furnished and shall not be deemed
“filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, and shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as
amended.
| Item 9.01. |
Financial Statements and Exhibits.
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(d)
Exhibits:
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99.1
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Press release, dated February 25, 2026.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be
signed on its behalf by the undersigned, hereunto duly authorized.
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CHERRY HILL MORTGAGE INVESTMENT
CORPORATION
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By:
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/s/ Apeksha Patel
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Apeksha Patel
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Date: February 25, 2026
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Chief Financial Officer and Treasurer
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EXHIBIT INDEX
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Exhibit
Number
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Description
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99.1
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Press release, dated February 25, 2026
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Exhibit 99.1
CHERRY HILL MORTGAGE INVESTMENT CORPORATION
ANNOUNCES FOURTH QUARTER 2025 RESULTS
TINTON FALLS, NJ – February 25, 2026 — Cherry Hill Mortgage Investment Corporation (NYSE: CHMI) (“Cherry Hill” or the “Company”) today reported results for the fourth
quarter 2025.
Fourth Quarter 2025 Highlights
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GAAP net income applicable to common stockholders of $5.3 million, or $0.14 per share.
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Earnings available for distribution (“EAD”) attributable to common stockholders of $3.9 million, or $0.11 per diluted share.
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Common book value per share of $3.44 at December 31, 2025.
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Declared regular common dividend of $0.10 per share; annualized common dividend yield was 15.4% based on the closing sale
price of the Company’s common stock as reported by the NYSE on February 24, 2026.
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Aggregate portfolio leverage stood at 5.4x at December 31, 2025.
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As of December 31, 2025, the Company had unrestricted cash of $54.9 million.
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“We were pleased to close out 2025 with another solid quarter, marked once again by increasing book value and net asset value per share,” said Jay Lown, President and
CEO of Cherry Hill Mortgage Investment Corporation. “Our diversified portfolio of RMBS and MSRs continued to perform well in a dynamic market environment and we remain committed to growing our portfolio and delivering attractive risk-adjusted returns
for our shareholders.”
Operating Results
Cherry Hill reported GAAP net income applicable to common stockholders for the fourth quarter of 2025 of $5.3 million, or $0.14 per basic and diluted weighted average
common share outstanding. Reported GAAP net income was determined based primarily on the following: $3.2 million of net interest income, $8.1 million of net servicing income, a net realized loss of $1.9 million on derivatives, a net unrealized gain
of $6.6 million on RMBS measured at fair value through earnings, a net unrealized loss of $0.4 million on derivatives, a net unrealized loss of $3.9 million on investments in Servicing Related Assets, and general and administrative expenses and
compensation and benefits in the aggregate amount of $3.3 million.
Earnings available for distribution attributable to common stockholders for the fourth quarter of 2025 were $3.9 million, or $0.11 per basic and diluted weighted average
common share outstanding. For a reconciliation of GAAP net income to non-GAAP earnings available for distribution, please refer to the reconciliation table accompanying this release.
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Three Months Ended
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December 31, 2025
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September 30, 2025
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(unaudited)
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(unaudited)
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Income
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Interest income
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$
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15,838
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$
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15,643
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Interest expense
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12,628
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12,343
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Net interest income
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3,210
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3,300
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Servicing fee income
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10,629
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10,764
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Servicing costs
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2,481
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2,297
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Net servicing income
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8,148
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8,467
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Other income (loss)
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Realized loss on derivatives, net
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(1,939
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(10,496
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)
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Realized gain on acquired assets, net
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-
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2
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Unrealized gain on RMBS, measured at fair value through earnings, net
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6,560
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10,730
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Unrealized gain (loss) on derivatives, net
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(361
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)
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2,482
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Unrealized loss on investments in Servicing Related Assets
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(3,857
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)
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(5,912
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)
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Total Income
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11,761
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8,573
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Expenses
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General and administrative expense
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1,544
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2,154
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Compensation and benefits
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1,740
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1,620
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Total Expenses
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3,284
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3,774
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Income Before Income Taxes
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8,477
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4,799
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Provision for corporate business taxes
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619
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284
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Net Income
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7,858
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4,515
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Net income allocated to noncontrolling interests in Operating Partnership
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(130
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)
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(83
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)
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Dividends on preferred stock
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(2,436
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)
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(2,477
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Net Income Applicable to Common Stockholders
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$
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5,292
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$
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1,955
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Net Income Per Share of Common Stock
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Basic
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$
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0.14
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$
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0.05
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Diluted
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$
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0.14
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$
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0.05
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Weighted Average Number of Shares of Common Stock Outstanding
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Basic
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36,593,018
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36,134,925
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Diluted
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36,630,066
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36,148,929
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Dollar amounts in thousands, except per share amounts.
Net unrealized gain on the Company’s RMBS portfolio classified as available-for-sale that are reported in accumulated other comprehensive income was approximately $1.2
million.
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Three Months Ended
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December 31, 2025
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September 30, 2025
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(unaudited)
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(unaudited)
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Net Income
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$
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7,858
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$
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4,515
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Other comprehensive income:
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Unrealized gain on RMBS, available-for-sale, net
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1,173
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2,561
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Net other comprehensive income
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1,173
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2,561
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Comprehensive income
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$
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9,031
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$
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7,076
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Comprehensive loss attributable to noncontrolling interests in Operating Partnership
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(142
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(119
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Dividends on preferred stock
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(2,436
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(2,477
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Comprehensive income attributable to common stockholders
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$
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6,453
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$
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4,480
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Dollar amounts in thousands.
Portfolio Highlights for the Quarter Ended December 31, 2025
The Company realized net servicing fee income of $8.1 million, net interest income of $3.2 million and other income of $0.4 million, primarily related to an unrealized
gain on RMBS, and partially offset by realized and unrealized losses on derivatives and an unrealized loss on investments in Servicing Related Assets. The unpaid principal balance for the MSR portfolio stood at $15.9 billion as of December 31, 2025
and the carrying value of the MSR portfolio ended the quarter at $214.8 million. Net interest spread for the RMBS portfolio stood at 2.52% and the debt-to-equity ratio on the aggregate portfolio ended the quarter at 5.4x.
The RMBS portfolio had a book value and carrying value of approximately $1.2 billion at quarter-end December 31, 2025. The portfolio had a weighted average coupon of
4.98% and weighted average maturity of 27 years.
In order to mitigate duration risk and interest rate risk associated with the Company’s RMBS and MSRs, Cherry Hill used interest rate swaps, TBAs, Treasury futures and
Eris SOFR swap futures. At quarter end December 31, 2025, the Company held interest rate swaps with a notional amount of $828.7 million, TBAs with a notional amount of ($409.5) million, Treasury futures with a notional amount of $19.5 million and
Eris SOFR swap futures with a notional amount of ($16.8) million.
As of December 31, 2025, Cherry Hill’s GAAP book value was $3.44 per diluted share, net of the fourth quarter dividend.
Dividends
On December 12, 2025, the Board of Directors declared a quarterly dividend of $0.10 per share of common stock for the fourth quarter of 2025. The dividend was paid in
cash on January 30, 2026 to common stockholders of record as of the close of business on December 31, 2025. Additionally, the Board of Directors declared a dividend of $0.5125 per share on the Company’s 8.20% Series A Cumulative Redeemable Preferred
Stock and a dividend of $0.6259 per share on the Company’s 8.250% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock for the fourth quarter 2025. The dividends were paid in cash on January 15, 2026 to Series A and B Preferred
stockholders of record as of the close of business on December 31, 2025.
Earnings Available for Distribution
Earnings available for distribution (“EAD”) is a non-GAAP financial measure that we define as GAAP net income (loss), excluding realized gain (loss) on RMBS, unrealized
gain (loss) on RMBS measured at fair value through earnings, realized and unrealized gain (loss) on derivatives, realized gain (loss) on acquired assets, realized and unrealized gain (loss) on investments in MSRs (net of any estimated MSR
amortization) and any tax expense (benefit) on realized and unrealized gain (loss) on MSRs. MSR amortization refers to the portion of the change in fair value of the MSR that is primarily due to the realization of cashflows, runoff resulting from
prepayments and an adjustment for any gain or loss on the capital used to purchase the MSR. EAD also includes interest rate swap periodic interest income (expense) and drop income on TBA dollar roll transactions, which are included in “Realized gain
(loss) on derivatives, net” on the consolidated statements of income (loss). EAD is adjusted to exclude outstanding LTIP-OP Units in our Operating Partnership and dividends paid on our preferred stock.
EAD is provided for purposes of potential comparability to other issuers that invest in residential mortgage-related assets. We believe providing investors with EAD, in
addition to related GAAP financial measures, may provide investors some insight into our ongoing operational performance. However, the concept of EAD does have significant limitations, including the exclusion of realized and unrealized gains
(losses), and given the apparent lack of a consistent methodology among issuers for defining EAD, it may not be comparable to similarly titled measures of other issuers, which define EAD differently from us and each other. As a result, EAD should not
be considered a substitute for our GAAP net income (loss) or as a measure of our liquidity. While EAD is one indicia of the Company’s earnings capacity, it is not the only factor considered in setting a dividend and is not the same as REIT taxable
income which is calculated in accordance with the rules of the IRS.
The following table provides a reconciliation of net income to EAD for the three months ended December 31, 2025 and September 30, 2025.
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Three Months Ended
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December 31, 2025
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September 30, 2025
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(unaudited)
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(unaudited)
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Net Income
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$
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7,858
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$
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4,515
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Realized loss on derivatives, net ¹
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6,497
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15,843
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Realized gain on acquired assets, net
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-
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(2
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)
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Unrealized gain on RMBS, measured at fair value through earnings, net
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(6,560
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)
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(10,730
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)
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Unrealized loss (gain) on derivatives, net
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361
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(2,482
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)
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Unrealized gain on investments in MSRs, net of estimated MSR amortization
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(3,053
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)
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(2,080
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)
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Tax expense on realized and unrealized gain on MSRs
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1,307
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801
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Total EAD:
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$
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6,410
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$
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5,865
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EAD attributable to noncontrolling interests in Operating Partnership
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(92
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)
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(84
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)
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Dividends on preferred stock
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(2,436
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)
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(2,477
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)
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EAD Attributable to Common Stockholders
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$
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3,882
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$
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3,304
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EAD Attributable to Common Stockholders, per Diluted Share
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$
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0.11
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$
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0.09
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GAAP Net Income Per Share of Common Stock, per Diluted Share
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$
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0.14
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$
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0.05
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Dollar amounts in thousands, except per share amounts.
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Excludes drop income on TBA dollar rolls of $167,000 and $589,000 and interest rate swap periodic interest income of $4.4 million and $4.8 million for the three-month periods ended December 31, 2025
and September 30, 2025, respectively.
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Additional Information
Additional information regarding Cherry Hill’s financial condition and results of operations will be available in its Annual Report on Form 10-K for the year ended
December 31, 2025, which will be filed with the Securities and Exchange Commission. In addition, an investor presentation with supplemental information regarding Cherry Hill, its business and its financial condition as of December 31, 2025 and its
results of operations for the quarter ended December 31, 2025 will be posted to the Investor Relations section of Cherry Hill’s website, www.chmireit.com. Cherry Hill will discuss the investor presentation on the conference call referenced below.
Webcast and Conference Call
The Company’s management will host a conference call today at 5:00 pm Eastern Time. A copy of this earnings release and the investor presentation referenced above will
be posted to the Investor Relations section of Cherry Hill’s website, www.chmireit.com. All interested parties are welcome to participate on the live call.
A live webcast of the conference call will be available in the investor relations section of the Company’s website at www.chmireit.com. To listen to the live broadcast,
go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. An online archive of the webcast will be available on the Company’s website for one year following the call.
To Participate in the Telephone Conference Call:
Participants may register for the conference call here. Once registered, dial-in information for the call will be made available.
About Cherry Hill Mortgage Investment Corporation
Cherry Hill Mortgage Investment Corporation is a real estate finance company that acquires, invests in and manages residential mortgage assets in the United States. For
additional information, visit www.chmireit.com.
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,
including, among others, statements relating to the Company’s long-term growth opportunities and strategies and the Company’s ability to expand its market opportunities and create its own Excess MSRs and its ability to generate sustainable and
attractive risk-adjusted returns for stockholders. These forward-looking statements are based upon the Company’s present expectations, but these statements are not guaranteed to occur. For a description of factors that may cause the Company’s actual
results or performance to differ from its forward-looking statements, please review the information under the heading “Risk Factors” included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and other documents filed by the Company with the Securities and Exchange Commission.
Contact:
Cherry Hill Mortgage Investment Corporation
Investor Relations
(877) 870-7005
InvestorRelations@chmireit.com
FAQ
How did Cherry Hill Mortgage (CHMI) perform in Q4 2025?
Cherry Hill Mortgage reported GAAP net income of $7.9 million for Q4 2025, with $5.3 million applicable to common stockholders, or $0.14 per diluted share. This compares with $0.05 per diluted share in the prior quarter, indicating stronger quarterly performance.
What were Cherry Hill Mortgage’s earnings available for distribution in Q4 2025?
Earnings available for distribution attributable to common stockholders were $3.9 million, or $0.11 per diluted share, in Q4 2025. This increased from $3.3 million, or $0.09 per diluted share, in Q3 2025, reflecting better distributable earnings capacity for common shareholders.
What dividend did Cherry Hill Mortgage (CHMI) declare for Q4 2025?
For Q4 2025, Cherry Hill Mortgage declared a $0.10 per share cash dividend on common stock, paid January 30, 2026. It also declared quarterly cash dividends of $0.5125 per share on Series A and $0.6259 per share on Series B preferred stock.
What was Cherry Hill Mortgage’s book value per share at December 31, 2025?
As of December 31, 2025, Cherry Hill Mortgage’s GAAP book value was $3.44 per diluted share, net of the fourth quarter dividend. This figure reflects the company’s equity value per share after accounting for portfolio marks and quarterly distributions.
How large were Cherry Hill Mortgage’s MSR and RMBS portfolios at year-end 2025?
At December 31, 2025, the MSR portfolio had an unpaid principal balance of $15.9 billion and carrying value of $214.8 million. The RMBS portfolio had a book and carrying value of about $1.2 billion, with a 4.98% weighted average coupon and 27-year weighted average maturity.
What were Cherry Hill Mortgage’s key income drivers in Q4 2025?
Key drivers were $3.2 million of net interest income, $8.1 million of net servicing income and a $6.6 million unrealized gain on RMBS. These were partly offset by realized and unrealized losses on derivatives and a $3.9 million unrealized loss on servicing-related assets.
Filing Exhibits & Attachments
5 documents
Cherry Hill Mtg Invt Corp