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 was $51.8 million, against a $10.7 million gain a year ago.
  • Total stockholders' Equity was $212.8 million at September 30, 2026, down from $238.5 million at year end.
  • The common Dividend declared was $0.10 per share for the quarter.

A third-quarter swing from profit to loss

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

After $2.4 million of preferred dividends, the net loss applicable to common stockholders was $3.9 million, or $(0.11) per share, versus $0.05 a year earlier. For the nine months, the common loss narrowed to $(0.12) per share from $(0.25).

Total expenses rose to $6.5 million from $3.8 million, leaving income before taxes at only $87 thousand, and a tax provision of $1.6 million pushed the Bottom Line negative.

Wider spread lifts net interest income by 37%

Interest expense fell from $12.3 million to $9.7 million, faster than interest income, which slipped to $14.2 million from $15.6 million. Net interest income therefore climbed to $4.5 million from $3.3 million, a rise of about 37% on a calculated basis.

The RMBS portfolio's weighted average Yield was 5.80% at September 30, 2026, against interest expense of 2.35%, a net interest spread of 3.45%. At December 31, 2025 the spread was 2.52%.

Repurchase agreement borrowings were $964.9 million, down from $1,137.2 million at year end.

Servicing income eases while marks on securities swing sharply

Net servicing income was $7.5 million, compared with $8.5 million a year earlier, a decline of about 11% on a calculated basis. Servicing fee income was $9.8 million, down from $10.8 million.

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

Total other loss was $5.5 million, against $3.2 million.

Pending Merger with TPG Mortgage Investment Trust

On August 9, 2026, the company agreed to merge 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, with a further $0.52 per share in cash coming from MITT's external manager.

The deal is expected to close in the fourth quarter of 2026, subject to approval by both companies' common stockholders. General and administrative expense rose to $4.6 million from $2.2 million, which included a $0.5 million opinion fee, and a further $2.0 million success fee becomes payable only if the mergers are completed.

Equity base and what to watch next

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

Readers following the name will likely watch whether stockholders approve the mergers, how Interest Rate moves continue to affect RMBS valuations and hedge results, and whether the 3.45% spread holds as borrowings are reset.