Cherry Hill Mortgage Investment Corporation (NYSE: CHMI) reported its financial results for the third quarter of 2026 on October 29, 2026. The company reported a GAAP net loss of $3.9 million, or $0.11 per share, attributable to common stockholders for the quarter ended September 30, 2026. Despite this loss, the company reported Earnings Available for Distribution (EAD) of $5.2 million, or $0.14 per diluted share.
The company's GAAP net loss was driven by a $51.8 million unrealized loss on residential mortgage-backed securities (RMBS) measured at fair value through earnings, partially offset by a $10.6 million net realized gain on derivatives. The company also reported $4.5 million in net interest income and $7.5 million in net servicing income for the quarter. General and administrative expenses totaled $6.5 million.
At the end of the quarter, Cherry Hill reported a common book value per share of $2.73. The company declared a regular common dividend of $0.10 per share, which was paid on October 30, 2026. The dividend represented an annualized yield of 15.4% based on the closing stock price on October 28, 2026.
In other news, Cherry Hill announced on August 10, 2026, that it had entered into a definitive merger agreement with TPG Mortgage Investment Trust, Inc. (NYSE: MITT). The transaction has an implied value of $117.5 million, representing a 29% premium to the closing price on August 7, 2026, and a 32% premium to the 30-Day Volume Weighted Average Price.
Portfolio highlights for the quarter included an unpaid principal balance for the servicing portfolio of $14.9 billion and a carrying value of $215.2 million. The RMBS portfolio had a book value of approximately $1.1 billion and a weighted average coupon of 5.08%. As of September 30, 2026, the company held $41.2 million in unrestricted cash and had an aggregate portfolio leverage of 5.19x.
