Cherry Hill Mortgage Investment (US:CHMI)2025-05-06 20:15Financial Performance - Net income (loss) for the three months ended March 31, 2025, was $(6,992) thousand, a decrease from net income of $12,056 thousand for the same period in 2024[51]. - Comprehensive income (loss) attributable to common stockholders was $(2,593) thousand for the three months ended March 31, 2025, compared to $3,199 thousand for the same period in 2024[54]. - The company reported a net loss of $6,992,000 compared to a net income of $12,056,000 for the same period in 2024, representing a significant decline[172]. - Basic and diluted EPS for Q1 2025 was $(0.29), down from $0.32 in Q1 2024, indicating a negative performance shift[172]. - The comprehensive income for the three months ended March 31, 2025, was a loss of $142,000, compared to a comprehensive income of $5,460,000 for the same period in 2024, marking a significant decline[108]. Revenue and Income Sources - Net interest income improved to $2,166 thousand for the three months ended March 31, 2025, compared to a net interest expense of $907 thousand for the same period in 2024[51]. - Interest income increased to $14,801 thousand for the three months ended March 31, 2025, up from $12,741 thousand in the same period of 2024, reflecting a growth of approximately 16.1%[51]. - The net servicing income for the three months ended March 31, 2025, was $8,428,000, a decrease from $10,257,000 in the same period of 2024, reflecting a decline of about 17.8%[108]. Assets and Liabilities - Total assets decreased from $1,491,175 thousand as of December 31, 2024, to $1,449,508 thousand as of March 31, 2025, representing a decline of approximately 2.8%[48]. - Total liabilities decreased from $1,257,553 thousand as of December 31, 2024, to $1,219,876 thousand as of March 31, 2025, a reduction of about 3.0%[48]. - The net assets increased slightly to $229,632,000 as of March 31, 2025, from $233,622,000 as of December 31, 2024, a decrease of approximately 1.7%[110]. - The company had outstanding borrowings under repurchase agreements of approximately $1,049.9 million as of March 31, 2025, with a weighted average rate of 4.46%[225][227]. Cash Flow and Investments - Net cash provided by operating activities was $682 thousand, a significant improvement from a net cash used of $19.051 million in the prior year[60]. - Cash flows from investing activities showed a net cash provided of $19.463 million, compared to a net cash used of $55.550 million in the same period last year[60]. - The company reported a net decrease in cash, cash equivalents, and restricted cash of $21.463 million, compared to a decrease of $16.572 million in the prior year[60]. - Cash and cash equivalents increased slightly from $46,313 thousand as of December 31, 2024, to $47,291 thousand as of March 31, 2025[48]. Dividends and Shareholder Returns - The company declared common dividends of $0.15 per share for the period, totaling $(4,919) thousand[57]. - Dividends declared but not paid amounted to $7.137 million, compared to $6.500 million in the prior year[60]. - The Company issued and sold 1,005,846 shares of common stock under the Common Stock ATM Program during the three-month period ended March 31, 2025, generating approximately $3.6 million in gross proceeds[145]. Derivatives and Risk Management - The Company’s derivatives, including TBAs, are recognized as either assets or liabilities on the balance sheets and measured at fair value[88]. - The company has netting arrangements in place with derivative counterparties, allowing for potential offsets on the consolidated balance sheets[191]. - The fair value of interest rate swaps was $14,704,000 as of March 31, 2025, compared to $13,375,000 at the end of 2024, showing a slight increase[180]. Taxation and Deferred Tax Assets - The effective tax rate for Q1 2025 was -2.5%, compared to 5.5% in Q1 2024, reflecting a significant change in tax expense[243]. - Deferred tax assets totaled $10,747 thousand as of March 31, 2025, slightly down from $10,921 thousand as of December 31, 2024[244]. - The Company believes it is more likely than not that it will fully realize its deferred tax assets based on future taxable income projections[244]. Management and Operational Changes - The company has transitioned to an internally managed structure as of November 14, 2024, enhancing its operational efficiency[66]. - Management fees paid to CHMM were $0 for Q1 2025, down from $1,598,000 in Q1 2024, reflecting the termination of the management agreement[177].