Cherry Hill Mortgage Investment Corporation Reports Q1 2026 Financial Results with Net Income of $429,000

Cherry Hill Mortgage Investment Corporation (CHMI) reported its financial results for the first quarter of 2026, revealing a net income of $429,000, a significant improvement from a net loss of $6.99 million in the same period last year. The company’s interest income increased to $15.85 million, up from $14.80 million year-over-year, while interest expenses decreased to $11.39 million from $12.63 million. This resulted in a net interest income of $4.46 million, compared to $2.17 million in the prior year. The company attributed the increase in net interest income to higher yields from new securities and a reduction in financing costs.

In terms of operational metrics, Cherry Hill's total assets decreased to $1.52 billion as of March 31, 2026, down from $1.54 billion at the end of 2025. The company’s investments in residential mortgage-backed securities (RMBS) at fair value were reported at $1.18 billion, a decline from $1.21 billion at the end of the previous fiscal year. The company also reported a decrease in its servicing-related assets, which stood at $213.46 million, down from $214.83 million. The decline in asset values was primarily attributed to changes in market conditions and interest rates.

Strategically, Cherry Hill continues to focus on its core business of investing in residential mortgage assets, including Agency RMBS and mortgage servicing rights (MSRs). The company has maintained its status as a Real Estate Investment Trust (REIT) and is committed to distributing at least 90% of its taxable income to shareholders. As of March 31, 2026, the company had approximately 36.74 million shares of common stock outstanding. The company did not issue any new shares under its at-the-market offering program during the quarter, leaving approximately $34.6 million available for future offerings.

The company’s operational performance indicators showed a slight decrease in servicing fee income, which fell to $10.22 million from $10.97 million year-over-year, reflecting changes in the size of the portfolio. Additionally, the unrealized loss on RMBS measured at fair value through earnings was reported at $12.44 million, compared to an unrealized gain of $14.78 million in the previous year, primarily due to rising interest rates. The company’s comprehensive loss for the quarter was $2.01 million, compared to a loss of $142,000 in the same quarter last year.

Looking ahead, Cherry Hill remains cautious about market conditions, particularly regarding interest rate fluctuations and their potential impact on asset values and net interest income. The company continues to evaluate its investment strategy and operational efficiency to navigate the evolving economic landscape. The management expressed confidence in its ability to meet liquidity needs and maintain its REIT status while pursuing growth opportunities in the residential mortgage market.