Group 1: Earnings Performance - Cherry Hill Mortgage (CHMI) reported quarterly earnings of $0.17 per share, exceeding the Zacks Consensus Estimate of $0.11 per share, and up from $0.13 per share a year ago, representing an earnings surprise of 54.55% [1] - The company posted revenues of $2.17 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 17.33%, compared to revenues of -$0.91 million a year ago [2] - Over the last four quarters, Cherry Hill has surpassed consensus EPS estimates only once [2] Group 2: Stock Performance and Outlook - Cherry Hill shares have increased approximately 13.3% since the beginning of the year, while the S&P 500 has declined by 3.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $0.12 on $3 million in revenues, and for the current fiscal year, it is $0.52 on $13.67 million in revenues [7] Group 3: Industry Context - The REIT and Equity Trust industry, to which Cherry Hill belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Cherry Hill's stock performance [5] - The estimate revisions trend for Cherry Hill is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, suggesting expected underperformance in the near future [6]

Financial Data and Key Metrics Changes - The company reported a GAAP net loss applicable to common stockholders of $9.3 million or $0.29 per diluted share for Q1 2025 [6][16] - Book value per common share decreased to $3.58 from $3.82 at the end of Q4 2024 [7][17] - NAV declined approximately $7.5 million or 3.2% relative to December 31 [7] Business Line Data and Key Metrics Changes - The MSR portfolio had an unpaid principal balance (UPB) of $17 billion and a market value of approximately $227 million, representing about 44% of equity capital [10] - The RMBS portfolio accounted for approximately 39% of equity capital, with a weighted average three-month CPR of 5.8% [10][12] - EAD attributable to common stockholders was $5.4 million or $0.17 per share, benefiting from dollar roll income [16] Market Data and Key Metrics Changes - Interest rates ended the quarter at 4.25%, approximately 30 basis points lower quarter over quarter [5] - Prepayment speeds for the MSR portfolio averaged approximately 4.1%, down modestly from the previous quarter [11] - RMBS portfolio's net interest spread was 3.55%, higher than the prior quarter [12] Company Strategy and Development Direction - The company plans to deploy capital into Agency RMBS and select MSRs while maintaining strong liquidity and prudent leverage [8] - The management is closely monitoring the macro environment and tariff situation to stress the portfolio for various scenarios [8] - The company aims to improve its expense ratio and capital structure over time by managing operating expenses [8] Management's Comments on Operating Environment and Future Outlook - Management expressed that rates will continue to be highly reactive to global political agendas and domestic economic data [6] - The uncertainty in the market has led the company to position its portfolio more neutrally to withstand daily volatility [6] - Future EAD is expected to trend lower due to the maturation of a significant hedge that previously contributed to EAD [16][53] Other Important Information - The company completed its first full quarter as an integrated, internally managed mortgage REIT [7] - Operating expenses for the quarter were $3.8 million, reflecting a decline due to the elimination of the management fee [17] - The Board declared a dividend of $0.15 per common share for Q1 2025, paid in cash on April 30 [18] Q&A Session Summary Question: What would it take for the company to allocate more to the RMBS portfolio? - Management indicated that all reinvestment income has been directed towards MBS, and significant changes would require selling a portion of the MSR [20][24] Question: Is there any movement in GSE reform affecting capital allocation? - Management stated it is too early to tell, and the market has not fully priced in the potential changes regarding GSE reform [25][29] Question: Can you provide a book value update for Q2? - The company reported a NAV down about 3.7% in April, leading to a 7% book value per share before any dividends [36] Question: How much of the EAD in Q1 was due to the roll-off of expenses associated with internalization? - Approximately $0.02 of EAD in Q1 was attributed to internalization and G&A savings [51] Question: What are the general thoughts on MSR pricing and supply post the Rocket Cooper deal? - Management noted that volumes have been lower and there have not been substantial changes in pricing dynamics in the market [50] Question: Are there opportunities in spec pools within the builder buy-down space? - Management has seen builder buy-downs but has not focused on them for the portfolio, preferring to keep pay-ups modest [44]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported a GAAP net loss applicable to common stockholders of $9.3 million, or $0.29 per diluted share, compared to a comprehensive loss of $2.6 million, or $0.08 per diluted share [6][15]. - The book value per common share decreased to $3.58 from $3.82 at the end of Q4 2024, reflecting a decline of approximately 6.3% [7][17]. - The NAV was down approximately $7.5 million, or 3.2%, relative to December 31, 2024 [7]. Business Line Data and Key Metrics Changes - The MSR portfolio had an unpaid principal balance (UPB) of $17 billion and a market value of approximately $227 million, representing about 44% of equity capital [11]. - The RMBS portfolio accounted for approximately 39% of equity capital, with a weighted average three-month CPR of 5.8%, slightly up from 5.7% in the previous quarter [12][13]. - Prepayment speeds for the MSR portfolio averaged approximately 4.1%, down modestly from the previous quarter, while RMBS prepayment speeds remained low [12]. Market Data and Key Metrics Changes - Interest rates ended the quarter at 4.25%, approximately 30 basis points lower quarter over quarter, but volatility increased due to tariff announcements [5][6]. - The company noted that mortgage performance was mixed, with higher coupon mortgages outperforming lower coupon mortgages [10]. Company Strategy and Development Direction - The company plans to deploy capital into Agency RMBS and select MSRs, focusing on strong risk-adjusted return profiles while maintaining liquidity and prudent leverage [9]. - Management emphasized the importance of closely managing operating expenses to improve the expense ratio and capital structure over time [8]. Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about ongoing macroeconomic uncertainty and the potential for elevated rates until clear macro policy is established [10][11]. - The company is cautious regarding GSE reform, indicating that current market assumptions about government guarantees may not be well-defined [27][29]. Other Important Information - The company declared a dividend of $0.15 per common share for Q1 2025, paid on April 30, 2025 [18]. - Operating expenses for the quarter were reported at $3.8 million, benefiting from the elimination of management fees [17]. Q&A Session Summary Question: What would it take for the company to allocate more to the RMBS portfolio? - Management indicated that all reinvestment income has been directed towards MBS, and significant changes would require selling a portion of the MSR portfolio [23]. Question: Is there any movement in GSE reform affecting market pricing? - Management stated it is too early to tell, noting that while there have been movements at the GSEs, specific plans regarding government guarantees remain undefined [27][29]. Question: Can you provide a book value update for Q2? - The company reported a NAV down about 3.7% in April, leading to an estimated 7% book value per share before any dividends [36]. Question: How much of the EAD in Q1 was due to the roll-off of internalization expenses? - Approximately $0.02 of EAD in Q1 was attributed to savings from internalization and G&A [52]. Question: What are the general thoughts on MSR pricing and supply post-Rocket Cooper deal? - Management noted that volumes have been lower than the previous year, and no substantial changes in pricing dynamics have been observed [51].

Financial Performance - The company reported a GAAP net loss of $0.29 per share[7] - Earnings Available for Distribution (EAD) was $0.17 per share[7] - The book value per common share decreased by 6.3% to $3.58, net of the quarterly dividend[8] - A dividend of $0.15 per share was declared and paid[8] - The company experienced a 2.4% total quarterly economic loss[8] Portfolio Metrics - The company's leverage ratio for the aggregate portfolio was 5.2x[8] - The net interest spread for RMBS was 3.6%[8] - The weighted average Constant Prepayment Rate (CPR) for RMBS was 5.8%[7] - The net CPR for Mortgage Servicing Rights (MSRs) was 4.1%[7] Asset Composition - As of March 31, 2025, 76% of the asset investment composition (excluding cash) was in 30 Year RMBS and 24% was in MSRs[15]

Financial Performance - Cherry Hill reported a GAAP net loss applicable to common stockholders of $9.3 million, or $0.29 per share for Q1 2025[4]. - Earnings available for distribution (EAD) attributable to common stockholders were $5.4 million, or $0.17 per diluted share[5]. - The company realized net servicing fee income of $8.4 million and net interest income of $2.2 million for the quarter[10]. Dividends - The company declared a regular common dividend of $0.15 per share, resulting in an annualized common dividend yield of 20.1%[6]. Asset Valuation - The common book value per share was $3.58 as of March 31, 2025[6]. - The unpaid principal balance for the MSR portfolio was $17.0 billion, with a carrying value of $227.3 million[10]. - The RMBS portfolio had a book value of approximately $1.1 billion, with a weighted average coupon of 4.88% and a weighted average maturity of 28 years[11]. - The net unrealized gain on the RMBS portfolio classified as available-for-sale was approximately $6.9 million[8]. Leverage and Financial Instruments - The aggregate portfolio leverage stood at 5.2x at the end of Q1 2025[6]. - As of March 31, 2025, the company held interest rate swaps with a notional amount of $804.3 million[12].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________to ________ Commission file number 001-36099 Securities registered pursuant to Section 12(b) of the Act: CHERRY HILL MORTGAGE INVESTMENT CORPORATION ( ...

Core Viewpoint - Cherry Hill Mortgage Investment Corporation (NYSE: CHMI) is identified as a real estate investment trust (mREIT) that focuses on investing in residential mortgages, offering high-yield dividends through its common shares and preferred shares [1] Company Overview - The company provides a high-yield dividend through its common shares and has two preferred shares, one of which yields over 11% [1] Investment Focus - The investment strategy is centered on income investing, utilizing common shares, preferred shares, or bonds [1]

Financial Data and Key Metrics Changes - For Q4 2024, the company generated GAAP net income applicable to common stockholders of $9.1 million or $0.29 per diluted share, while earnings available for distribution (EAD) were $3.3 million or $0.10 per share, impacted by approximately two cents per share of expenses related to the special committee's efforts [12][25][26] - Book value per common share decreased to $3.82 from $4.02 as of September 30, 2024, with NAV down approximately $5.5 million or 2.3% relative to the previous quarter [13][26] - Financial leverage remained consistent at 5.3 times, with $46 million of unrestricted cash on the balance sheet, indicating a solid liquidity profile [14] Business Line Data and Key Metrics Changes - The MSR portfolio had a UPB of $17.3 billion and a market value of approximately $234 million, representing about 46% of equity capital and 24% of invested assets excluding cash [19] - The RMBS portfolio accounted for approximately 38% of equity capital, with prepayment speeds for both MSR and RMBS portfolios remaining steady compared to the prior quarter [20][22] - The RMBS portfolio's weighted average three-month CPR was approximately 5.7%, up from 5.4% in the third quarter, with the portfolio's net interest spread at 2.9% lower than the prior quarter [22][23] Market Data and Key Metrics Changes - Long-term yields rose to seven-month highs, with the ten-year yield ending at 4.57%, nearly eighty basis points higher quarter over quarter, driven by concerns over persistent inflation [7][8] - The relationship between short and longer-dated rates has been highly reactive to political agendas and domestic economic data, impacting the company's RMBS portfolio [8] Company Strategy and Development Direction - The company completed the internalization of management, which is expected to reduce operating expenses in 2025 by $1.1 million to $1.6 million, enhancing alignment between management and shareholders [9][11] - The investment strategy will continue to focus on agency RMBS and select MSRs that present strong risk-adjusted return profiles while maintaining strong liquidity and prudent leverage [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the macroeconomic and geopolitical environment, anticipating fewer rate cuts in 2025 than previously expected, and indicated that the investment strategy will remain data-dependent [8][14] - The company expects continued volatility in the near term, with rates likely to remain higher until inflation shows signs of moderating or economic growth falters [18] Other Important Information - Operating expenses for the quarter were $4.5 million, including special committee-related expenses, and dividends declared included $0.15 per common share for Q4 2024 [28] Q&A Session Summary Question: Clarification on special committee expenses and internalization benefits - Management confirmed that special committee expenses were included in the SG&A line item and that benefits from internalization would be reflected in SG&A and compensation moving forward [31][33] Question: Expectations for repo costs and portfolio growth - Management noted that elevated repo costs were partly year-end expenses but have since decreased, and they expect to grow the portfolio through capital raising [35][36][42] Question: Capital allocation between MSR and RMBS - Management indicated that the increase in servicing equity was due to a rise in MSR values rather than new purchases, and they will continue to favor RMBS for better returns in the current environment [48][51] Question: Impact of Fed rate cuts on investment strategy - Management acknowledged that expectations for rate cuts could influence their investment decisions, particularly regarding the MSR portfolio, which has higher financing costs [55][57] Question: Current refinanceability and spec pools - Management estimated that about 5-10% of the market is refinanceable, with a need for mortgage rates to drop further to stimulate significant refinancing activity [71][73]

Financial Data and Key Metrics Changes - For Q4 2024, the company generated GAAP net income applicable to common stockholders of $9.1 million or $0.29 per diluted share, while earnings available for distribution (EAD) were $3.3 million or $0.10 per share, impacted by approximately two cents per share of special committee-related expenses [12][25][26] - Book value per common share decreased to $3.82 from $4.02 as of September 30, 2024, with NAV down approximately $5.5 million or 2.3% relative to the previous quarter [13][26] - Financial leverage remained consistent at 5.3 times, with $46 million of unrestricted cash on the balance sheet [14] Business Line Data and Key Metrics Changes - The MSR portfolio had a UPB of $17.3 billion and a market value of approximately $234 million, representing about 46% of equity capital [19] - The RMBS portfolio accounted for approximately 38% of equity capital, with a weighted average three-month CPR of approximately 5.7% compared to 5.4% in the previous quarter [22][23] - The RMBS net interest spread was 2.9% lower than the prior quarter due to improved repo costs being offset by a reduction in swap and dollar roll income [23] Market Data and Key Metrics Changes - Long-term yields rose to seven-month highs, with the ten-year yield ending at 4.57%, nearly eighty basis points higher quarter over quarter [7] - Mortgage spreads widened and volatility increased due to concerns about the US election and future debt levels, despite two rate cuts by the Fed [16] - Prepayment speeds for the MSR portfolio averaged approximately 4.7% for Q4, down modestly from the previous quarter, while RMBS prepayment speeds rose modestly as expected [20][22] Company Strategy and Development Direction - The company completed the internalization of management, which is expected to reduce operating expenses in 2025 by $1.1 million to $1.6 million [9][11] - The investment strategy will continue to focus on agency RMBS and select MSRs that present strong risk-adjusted return profiles while maintaining strong liquidity and prudent leverage [14][15] - The company remains cautious of the macroeconomic environment and geopolitical factors, expecting to maintain its current investment strategy [8] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns over persistent inflation and uncertainty about economic growth, indicating that additional rate cuts in 2025 will be fewer than previously expected [8] - The company anticipates continued volatility in the near term, with rates expected to remain higher until inflation shows signs of moderating or economic growth falters [18] - Management highlighted the importance of aligning management and shareholder interests through internalization, improving transparency and decision-making processes [10] Other Important Information - Operating expenses for the quarter were $4.5 million, including special committee-related expenses [28] - The board declared a dividend of $0.15 per common share for Q4 2024, paid in cash on January 31, 2025 [28] Q&A Session Summary Question: Special committee expenses and internalization benefits - The special committee expenses were found in the SG&A line item, and benefits from internalization will be reflected in SG&A and compensation and benefits going forward [31][33] Question: Repo costs and portfolio growth - Elevated repo costs were attributed to year-end expenses, but benefits have been seen in the first quarter, with potential for growth through capital raising [35][36][42] Question: Capital allocation between investment bins - The increase in servicing equity composition was due to an increase in MSR value, with a focus on RMBS for better returns in the current environment [48][51] Question: Expectations for Fed rate cuts - Expectations for fewer rate cuts this year may impact investment strategies, with a focus on the MSR portfolio's returns if rates drop [56][57] Question: Refinance activity and spec pools - Current refinanceability stands at about 5-10%, with a need for mortgage rates to drop to around 5.7%-5.8% for significant refinancing activity [71][73]

Group 1 - Cherry Hill Mortgage Investment Corporation held its Fourth Quarter 2024 Earnings Conference Call on March 6, 2025 [1] - The call featured key participants including the President and CEO, Chief Investment Officer, and CFO [1][2] - A press release and investor presentation were made available on the company's website prior to the call [3] Group 2 - Management's remarks included forward-looking statements that are subject to risks and uncertainties [4] - Forward-looking statements encompass estimates related to interest income, financial guidance, and future expected cash flows [4][5]