Cherry Hill Mortgage Investment Corporation (CHMI) reported its financial results for the second quarter of 2026, revealing a net income of $3.8 million, or $0.04 per share, compared to a net income of $1.6 million, or a loss of $0.03 per share, in the same quarter of the previous year. For the first half of 2026, the company recorded a net income of $4.2 million, a significant improvement from a net loss of $5.4 million in the first half of 2025. The increase in profitability was attributed to a rise in net interest income, which reached $4.7 million for the quarter, up from $2.6 million a year earlier, driven by higher yields on the portfolio.
Total revenue for the second quarter was reported at $7.9 million, an increase from $6.0 million in the same quarter of 2025. The company’s interest income slightly decreased to $14.7 million from $15.0 million in the previous quarter, while interest expense also decreased to $10.0 million from $11.4 million, reflecting a reduction in financing costs. The company’s servicing fee income was $9.7 million, down from $10.9 million in the prior year, primarily due to changes in the size of the servicing portfolio.
In terms of operational developments, Cherry Hill's total assets decreased to $1.4 billion as of June 30, 2026, down from $1.5 billion at the end of 2025. The decline was mainly due to a reduction in the fair value of residential mortgage-backed securities (RMBS) and servicing-related assets. The company’s investments in RMBS were valued at $1.08 billion, down from $1.21 billion at the end of the previous fiscal year. The company also reported a decrease in liabilities, which fell to $1.17 billion from $1.30 billion, primarily due to a reduction in borrowings under repurchase agreements.
Looking ahead, Cherry Hill Mortgage is in the process of merging with TPG Mortgage Investment Trust, Inc. (MITT), with the transaction expected to close in the fourth quarter of 2026, subject to stockholder approval and other customary conditions. The merger is anticipated to enhance the company’s operational scale and financial performance. The company remains focused on managing its portfolio of residential mortgage assets while navigating the challenges posed by fluctuating interest rates and market conditions.
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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