Cherry Hill Mortgage Investment Corporation (CHMI) reported its financial results for the second quarter of 2025, revealing a net income of $1.6 million, or a loss of $0.03 per share, compared to a net income of $784,000, or a loss of $0.06 per share, in the same quarter of the previous year. For the first half of 2025, the company recorded a net loss of $5.4 million, significantly down from a net income of $12.8 million in the first half of 2024. The decline in profitability was attributed to increased realized losses on residential mortgage-backed securities (RMBS) and unrealized losses on derivatives, which were exacerbated by fluctuating interest rates.
Total revenue for the second quarter of 2025 was $6 million, a decrease from $6.6 million in the same period last year. Interest income rose to $14.8 million, up from $13.7 million, while interest expense decreased to $12.2 million from $13.5 million, resulting in a net interest income of $2.6 million. Servicing fee income also saw a decline, totaling $10.9 million compared to $12.3 million in the prior year, reflecting changes in the size of the portfolio. The company’s investments in servicing-related assets decreased in value, with a carrying value of $224.6 million as of June 30, 2025, down from $233.7 million at the end of 2024.
In terms of operational developments, Cherry Hill Mortgage has transitioned to an internally managed structure following the termination of its management agreement with Cherry Hill Mortgage Management, LLC, in November 2024. This internalization is expected to enhance operational efficiency and align management incentives with shareholder interests. The company continues to focus on acquiring and managing residential mortgage assets, primarily Agency RMBS, which are backed by government-sponsored enterprises.
As of June 30, 2025, Cherry Hill Mortgage had total assets of approximately $1.49 billion, with liabilities of $1.26 billion, resulting in stockholders' equity of $232.4 million. The company’s outstanding shares of common stock increased to 36,045,092, reflecting its ongoing capital-raising efforts through its at-the-market (ATM) program, which has raised approximately $12.7 million in gross proceeds during the first half of 2025. The company’s leverage, measured by borrowings under repurchase agreements, stood at $1.07 billion, with a weighted average interest rate of 4.47%.
Looking ahead, Cherry Hill Mortgage remains cautious about the impact of interest rate fluctuations on its portfolio and overall financial performance. The company is focused on maintaining adequate liquidity to meet its operational needs and potential margin calls, while also exploring opportunities for further capital raising and investment in servicing-related assets. The management team is committed to navigating the current economic landscape and optimizing returns for shareholders through strategic asset management and operational improvements.
About Cherry Hill Mortgage Investment Corp
Cherry Hill Mortgage Investment Corporation is a Maryland-based real estate finance company specializing in acquiring, investing in, and managing residential mortgage assets in the U.S. Its portfolio includes mortgage-backed securities (RMBS) and mortgage servicing rights (MSRs). The company operates as a REIT, focusing on generating attractive yields and risk-adjusted returns through active management, leveraging assets, and hedging interest rate risks. It transitioned to an internally managed structure in 2024.
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