CHMI · Cherry Hill Mortgage Investment Corporation

Cherry Hill’s Q1 2026 results reflect pronounced accounting volatility driven by fair-value mark-to-market treatment of its RMBS portfolio: a $12.4 million unrealized loss on RMBS measured through earnings—largely attributable to unprecedented geopolitical-driven market volatility—overwhelmed $4.5 million of net interest income and $7.9 million of net servicing income, resulting in a GAAP net loss of $2.0 million. Management explicitly cited this volatility and their responsive risk mitigation as central to the quarter, noting stabilization observed in April but emphasizing continued proactive management of RMBS and MSRs amid persistent uncertainty. In contrast, EAD—a non-GAAP measure excluding unrealized gains/losses and certain derivative impacts—rose to $5.3 million ($0.14 per diluted share), up from $3.9 million ($0.11) in Q4 2025, underscoring underlying operational cash generation capacity. The $0.10 common dividend—paid April 30—was fully covered by EAD, sustaining the 15.5% annualized yield. Balance sheet metrics remained disciplined: leverage held steady at 5.5x, unrestricted cash totaled $46.7 million, and common book value settled at $3.23 per share post-dividend. Notably, the MSR portfolio carried a $213.5 million book value against a $15.6 billion unpaid principal balance, and the RMBS portfolio maintained a 2.90% net interest spread with a 4.98% weighted average coupon—both key indicators of portfolio quality and yield resilience. While no forward guidance is disclosed, management’s emphasis on risk mitigation and portfolio diversification signals continued prioritization of capital preservation over aggressive growth in uncertain conditions.