Key Highlights

  • Net loss per common share was $(0.11) in the third quarter, compared with $0.05 a year earlier.
  • Net interest income rose to $4.5 million from $3.3 million in the prior year quarter.
  • Unrealized loss on RMBS totaled $51.8 million, against a $10.7 million gain a year ago.
  • Total stockholders' Equity stood at $212.8 million on September 30, 2026, down from $238.5 million at year end.
  • The common Dividend declared for the quarter was $0.10 per share.

A third-quarter move from profit to loss

Cherry Hill Mortgage Investment (NYSE:CHMI) is an internally managed residential real estate finance company focused on mortgage servicing rights and agency mortgage-backed securities. Its Quarterly Report for the period ended September 30, 2026, with share data as of October 29, 2026, showed a net loss of $1.5 million, after Net Income of $4.5 million in the third quarter of 2025.

Once $2.4 million of preferred dividends were deducted, the net loss to common stockholders reached $3.9 million, or $(0.11) per share, compared with $0.05 a year earlier. Across nine months, the common loss narrowed to $(0.12) per share from $(0.25).

Total expenses increased to $6.5 million from $3.8 million. Income before taxes was only $87 thousand, and a $1.6 million tax provision turned the Bottom Line negative.

Wider spread lifts net interest income 37%

Interest expense dropped from $12.3 million to $9.7 million, a faster decline than interest income, which eased to $14.2 million from $15.6 million. As a result, net interest income climbed to $4.5 million from $3.3 million, a rise of about 37% on a calculated basis.

The RMBS portfolio carried a weighted average Yield of 5.80% at September 30, 2026, against an interest expense rate of 2.35%, leaving a net interest spread of 3.45%. At December 31, 2025, that spread stood at 2.52%.

Repurchase agreement borrowings totaled $964.9 million, lower than the $1,137.2 million recorded at year end.

Servicing income slips as securities marks swing

Net servicing income came to $7.5 million, versus $8.5 million a year earlier, a decline of about 11% on a calculated basis. Servicing fee income fell to $9.8 million from $10.8 million.

Valuation changes drove the headline figure. Unrealized losses on agency RMBS held at Fair Value reached $51.8 million, compared with a $10.7 million gain in the prior year quarter. Hedging offset part of that, with unrealized derivative gains of $32.1 million and realized derivative gains of $10.6 million.

Total other loss was $5.5 million, compared with $3.2 million.

Pending Merger with TPG Mortgage Investment Trust

On August 9, 2026, the company agreed to combine with TPG Mortgage Investment Trust (NYSE:MITT). Each Cherry Hill common share would convert into 0.3063 of a MITT share plus $0.41 in cash, along with an additional $0.52 per share in cash supplied by MITT's external manager.

The transaction is expected to close in the fourth quarter of 2026, pending approval from the common stockholders of both companies. General and administrative expense increased to $4.6 million from $2.2 million, including a $0.5 million opinion fee. A further $2.0 million success fee becomes payable only if the mergers are completed.

Equity base and what comes next

Total stockholders' equity was $212.8 million at September 30, 2026, down from $238.5 million at December 31, 2025, while total Assets declined to $1.36 billion from $1.54 billion.

Investors will likely watch whether stockholders approve the mergers, how Interest Rate movements keep affecting RMBS valuations and hedge results, and whether the 3.45% spread holds as borrowings reprice.