Cherry Hill Mortgage Investment Corp (CHMI): ANNOUNCES THIRD QUARTER 2026 RESULTS
Cherry Hill Mortgage Investment Corp (CHMI) filed an SEC Form 8-K — Results of Operations and Financial Condition. CHERRY HILL MORTGAGE INVESTMENT CORPORATION ANNOUNCES THIRD QUARTER 2026 RESULTS TINTON FALLS, NJ – October 29, 2026 — Cherry Hill Mortgage Investment Corporation (NYSE: CHMI) (“Cherry Hill” or the “Company”) today reported results for the third quarter 2026. Third Quarter 2026 H
How this was made
The 30-second read
Why it matters
The earnings miss and net loss suggest short‑term downside, while the dividend and merger premium provide longer‑term support.
Market read
Primary relevance to mortgage REIT investors; secondary relevance to income‑focused traders.
What to watch
Potential upside from interest‑rate hedging activities and the upcoming integration synergies post‑merger.
Cherry Hill reported GAAP net loss applicable to common stockholders of $3.9 million, or $0.11 per share, while EAD attributable to common stockholders was $5.2 million, or $0.14 per diluted share.
Third-quarter GAAP results were negative, driven primarily by a $51.8 million unrealized loss on RMBS measured at fair value through earnings, while EAD remained positive at $5.2 million and net servicing income increased sequentially.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net interest income, three months ended September 30, 2026GAAP | $4.53M | – | – |
| Interest income, three months ended September 30, 2026GAAP | $14.20M | – | – |
| Interest expense, three months ended September 30, 2026GAAP | 9,672 | – | – |
| Servicing fee income, three months ended September 30, 2026GAAP | $9.76M | – | – |
| Servicing costs, three months ended September 30, 2026GAAP | 2,235 | – | – |
| Net servicing income, three months ended September 30, 2026GAAP | $7.52M | – | – |
| Realized loss on RMBS, net, three months ended September 30, 2026GAAP | - | – | – |
| Realized gain on derivatives, net, three months ended September 30, 2026GAAP | $10.59M | – | – |
| Realized gain on acquired assets, net, three months ended September 30, 2026GAAP | - | – | – |
| Unrealized loss on RMBS, measured at fair value through earnings, net, three months ended September 30, 2026GAAP | (51,776) | – | – |
| Unrealized gain (loss) on derivatives, net, three months ended September 30, 2026GAAP | $32.10M | – | – |
| Unrealized gain (loss) on investments in Servicing Related Assets, three months ended September 30, 2026GAAP | $4.09M | – | – |
| Credit loss and impairment on other assets, three months ended September 30, 2026GAAP | (500) | – | – |
| Total other loss, three months ended September 30, 2026GAAP | −$5.50M | – | – |
| Total Income, three months ended September 30, 2026GAAP | $6.56M | – | – |
| General and administrative expense, three months ended September 30, 2026GAAP | $4.64M | – | – |
| Compensation and benefits, three months ended September 30, 2026GAAP | $1.83M | – | – |
| Total Expenses, three months ended September 30, 2026GAAP | $6.47M | – | – |
| Income Before Income Taxes, three months ended September 30, 2026GAAP | $ 87 | – | – |
| Provision for corporate business taxes, three months ended September 30, 2026GAAP | $1.56M | – | – |
| Net Income (Loss), three months ended September 30, 2026GAAP | −$1.47M | – | – |
| Net Income (Loss) Applicable to Common Stockholders, three months ended September 30, 2026GAAP | −$3.87M | – | – |
| Net Income (Loss) Per Share of Common Stock, basic, three months ended September 30, 2026GAAP | $ (0.11) | – | – |
| Net Income (Loss) Per Share of Common Stock, diluted, three months ended September 30, 2026GAAP | $ (0.11) | – | – |
| Weighted Average Number of Shares of Common Stock Outstanding, basic, three months ended September 30, 2026GAAP | 36,779,326 | – | – |
| Weighted Average Number of Shares of Common Stock Outstanding, diluted, three months ended September 30, 2026GAAP | 36,779,326 | – | – |
| Unrealized loss on RMBS, available-for-sale, net, three months ended September 30, 2026GAAP | −$8.93M | – | – |
| Comprehensive income (loss), three months ended September 30, 2026GAAP | −$10.40M | – | – |
| Comprehensive income (loss) attributable to common stockholders, three months ended September 30, 2026GAAP | −$12.67M | – | – |
| EAD, three months ended September 30, 2026non-GAAP | $7.78M | – | – |
| EAD attributable to common stockholders, three months ended September 30, 2026non-GAAP | $5.25M | – | – |
| EAD attributable to common stockholders, per diluted share, three months ended September 30, 2026non-GAAP | $ 0.14 | – | – |
| Common book value per diluted share at September 30, 2026GAAP | $2.73 | – | – |
| Net interest spread for the RMBS portfolio at September 30, 2026other | 3.45% | – | – |
| Aggregate portfolio leverage at September 30, 2026other | 5.19x | – | – |
Capital returns
- Declared regular common dividend of $0.10 per share for the third quarter of 2026, payable in cash on October 30, 2026 to common stockholders of record as of the close of business on September 30, 2026.
- Declared a dividend of $0.5125 per share on the 8.20% Series A Cumulative Redeemable Preferred Stock for the third quarter 2026, paid in cash on October 15, 2026.
- Declared a dividend of $0.6162 per share on the 8.250% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock for the third quarter 2026, paid in cash on October 15, 2026.
- 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 October 28, 2026.
What drove it
- Net servicing income was $7.5 million and net interest income was $4.5 million.
- A realized gain on derivatives of $10.6 million, an unrealized gain on derivatives of $32.1 million, and an unrealized gain of $4.1 million on investments in Servicing Related Assets partially offset RMBS and credit-related losses.
- The Company used interest rate swaps, TBAs, Treasury futures and Eris SOFR swap futures to mitigate duration risk and interest rate risk associated with RMBS and MSRs.
Concerns
- The Company recorded a $51.8 million unrealized loss on RMBS measured at fair value through earnings.
- The Company recorded $0.5 million of credit loss and impairment on other assets.
- General and administrative expense was $4.6 million, compared with $2.1 million for the three months ended June 30, 2026.
- The Company reported GAAP net loss applicable to common stockholders of $3.9 million.
- Net unrealized loss on RMBS classified as available-for-sale and reported in accumulated other comprehensive income was approximately $8.9 million.
- The pending transaction with TPG Mortgage Investment Trust, Inc. introduces completion, approval, transaction-cost and execution risks described in the filing.
What to watch
- Completion of the pending transaction with TPG Mortgage Investment Trust, Inc., which had an implied transaction value of $117.5 million when announced on August 10, 2026.
- Future changes in interest rates, credit spreads, prepayment rates, default rates, market volatility and mortgage market conditions identified in the filing.
- RMBS valuation movements, derivative results, credit loss and impairment on other assets, and MSR portfolio performance.
- The Company will not host a webcast or conference call due to the pending transaction with TPG Mortgage Investment Trust, Inc.
Balance sheet and cash flow
- Unrestricted cash was $41.2 million as of September 30, 2026.
- The unpaid principal balance for the MSR portfolio was $14.9 billion as of September 30, 2026.
- The carrying value of the MSR portfolio was $215.2 million at September 30, 2026.
- The RMBS portfolio had a book value of approximately $1.1 billion and a carrying value of approximately $1.0 billion at September 30, 2026.
- The RMBS portfolio weighted average coupon was 5.08% and weighted average maturity was 27 years at September 30, 2026.
- Interest rate swaps had a notional amount of $767.3 million at September 30, 2026.
- TBAs had a notional amount of ($415.4) million at September 30, 2026.
- Treasury futures had a notional amount of ($68.1) million at September 30, 2026.
- Eris SOFR swap futures had a notional amount of ($91.7) million at September 30, 2026.
Analysis
Cherry Hill reported a GAAP net loss applicable to common stockholders of $3.9 million, or $0.11 per basic and diluted share, for the third quarter of 2026. The principal reported driver was a $51.8 million unrealized loss on RMBS measured at fair value through earnings. This was partially offset by a $32.1 million unrealized gain on derivatives, a $10.6 million realized gain on derivatives, and a $4.1 million unrealized gain on investments in Servicing Related Assets. The Company also recorded $0.5 million of credit loss and impairment on other assets.
Core reported income streams were comparatively stable sequentially. Net servicing income was $7.5 million, compared with $7.4 million for the three months ended June 30, 2026, as servicing fee income was $9.8 million and servicing costs were $2.2 million. Net interest income was $4.5 million, compared with $4.7 million in the preceding quarter. EAD attributable to common stockholders was $5.2 million, or $0.14 per diluted share, compared with $5.5 million, or $0.15 per diluted share, for the three months ended June 30, 2026.
Expenses and taxes weighed on the quarter. General and administrative expense was $4.6 million versus $2.1 million in the preceding quarter, while compensation and benefits was $1.8 million versus $1.9 million. The provision for corporate business taxes was $1.6 million compared with $0.1 million for the three months ended June 30, 2026. Comprehensive loss attributable to common stockholders was $12.7 million, including an $8.9 million unrealized loss on available-for-sale RMBS reported in other comprehensive income.
At quarter-end, common GAAP book value was $2.73 per diluted share, net of the third quarter dividend, and aggregate portfolio leverage was 5.19x. Unrestricted cash was $41.2 million. The Company declared a regular common dividend of $0.10 per share, while the annualized common dividend yield was 15.4% based on the October 28, 2026 NYSE closing sale price. The operating outlook is dominated by the pending transaction with TPG Mortgage Investment Trust, Inc.; Cherry Hill provided no forward financial guidance and will not host a results webcast or conference call because of the pending transaction.
Not in the filing
stated, not guessed- Revenue was not reported.
- Segment revenue was not reported.
- Gross margin was not reported.
- Operating income was not reported.
- Prior-year comparable figures and year-over-year changes were not reported for the third-quarter metrics.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Total debt was not reported.
- Share repurchases were not reported.
- Forward financial guidance was not provided.
- Prior outlook was not provided.
- Named executive commentary and named executive quotes were not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Cherry Hill Mortgage Investment Corp filed an 8‑K reporting its Q3 2026 financials and a pending merger with MITT.
Ticker impact
Cherry Hill Mortgage Investment Corp reported Q3 2026 results, including a GAAP net loss of $3.9M, a $0.10 dividend, and announced a merger with TPG Mortgage Investment Trust.
likely downside pressure as the loss dominates, tempered by dividend yield and merger premium
The company posted a net loss and modest earnings distribution, which typically depresses price, but the 15% dividend yield and 29% merger premium may attract income‑focused buyers.
TPG Mortgage Investment Trust (MITT) is the target of Cherry Hill's announced definitive merger agreement valued at $117.5M.
potential upside as the premium may be priced in
MITT shareholders receive a 29% premium to the pre‑announcement price, which is a clear value driver.
Market effects
Mortgage REIT sector may see modest pressure from Cherry Hill's loss but could benefit from merger consolidation trends.
Limited to U.S. mortgage REIT investors.
Low; impact confined to niche mortgage REIT space.
Counterpoint
Despite the loss, the high dividend yield and merger premium could make the stock a buy‑on‑dip opportunity.
Key entities
- CompanyCherry Hill Mortgage Investment Corp
Mortgage REIT reporting Q3 results and merger.
- CompanyTPG Mortgage Investment Trust
Merger target offering a premium.
