Cherry Hill Mortgage Investment (CHMI) - 2024 Q1 - Quarterly Results

Cherry Hill Mortgage Investment Corporation First Quarter 2024 Results First Quarter 2024 Highlights Cherry Hill reported positive GAAP net income and EAD, declared a common dividend, and maintained book value with moderate leverage Q1 2024 Key Financial Metrics | Metric | Value | | :--- | :--- | | GAAP Net Income to Common Stockholders | $9.7 million | | GAAP EPS (diluted) | $0.32 | | Earnings Available for Distribution (EAD) | $4.0 million | | EAD per Diluted Share | $0.13 | | Common Book Value per Share | $4.49 | | Declared Common Dividend per Share | $0.15 | | Aggregate Portfolio Leverage | 4.5x | | Unrestricted Cash | $47.5 million | - The company repurchased approximately 372,000 shares of its 8.250% Series B Preferred Stock for $9.3 million as of May 3, 2024, with $41.2 million remaining in the repurchase program[14] - The CEO noted that the investment portfolio's positioning helped offset the impact of widening spreads and higher interest rates during the quarter[1] Operating and Financial Results Q1 2024 GAAP net income was driven by net servicing income and derivative gains, partially offset by unrealized losses on RMBS and servicing assets Consolidated Statements of Income (Unaudited, in thousands, except per share amounts) | Account | Q1 2024 | Q4 2023 | | :--- | :--- | :--- | | Total Income (Loss) | $16,348 | ($30,893) | | Total Expenses | $3,589 | $3,472 | | Net Income (Loss) | $12,056 | ($33,644) | | Net Income (Loss) Applicable to Common Stockholders | $9,666 | ($35,480) | | Diluted EPS | $0.32 | ($1.29) | Consolidated Statements of Comprehensive Income (Unaudited, in thousands) | Account | Q1 2024 | Q4 2023 | | :--- | :--- | :--- | | Net Income (Loss) | $12,056 | ($33,644) | | Unrealized gain (loss) on RMBS, available-for-sale, net | ($6,596) | $29,527 | | Comprehensive income (loss) | $5,460 | ($4,117) | | Comprehensive income (loss) attributable to common stockholders | $3,199 | ($6,504) | - GAAP book value was $4.49 per diluted share as of March 31, 2024, net of the first quarter dividend[18] Portfolio Highlights The company's portfolio included $19.6 billion MSRs and $1.1 billion RMBS, with hedging strategies utilizing swaps, TBAs, and Treasury futures - The MSR portfolio's unpaid principal balance was $19.6 billion with a carrying value of $250.4 million at quarter-end[17] - The RMBS portfolio had a book value of approximately $1.1 billion, a carrying value of $1.0 billion, a weighted average coupon of 4.71%, and a weighted average maturity of 28 years[31] - The company held interest rate swaps ($1.1B notional), TBAs (($418.2M notional)), and Treasury futures ($256.6M notional) to hedge against duration and interest rate risk[9] Dividends The Board declared a $0.15 quarterly common dividend and also paid dividends for Series A and Series B preferred stock - A quarterly dividend of $0.15 per share of common stock was declared on March 14, 2024, and paid on April 30, 2024[19] - Quarterly dividends were also declared for preferred stock: $0.5125 per share for 8.20% Series A and $0.515625 per share for 8.250% Series B, both paid on April 15, 2024[19] Earnings Available for Distribution (EAD) The company reported $4.0 million EAD for Q1 2024, a non-GAAP measure providing insight into ongoing operational performance - EAD is a non-GAAP measure defined as GAAP net income excluding various realized and unrealized gains/losses on RMBS, derivatives, and MSRs, and is not a substitute for GAAP net income[25][20] Reconciliation of Net Income to EAD (Unaudited, in thousands, except per share amounts) | Account | Q1 2024 | Q4 2023 | | :--- | :--- | :--- | | Net Income (Loss) | $12,056 | ($33,644) | | Adjustments (Net) | ($5,632) | $40,763 | | Total EAD | $6,424 | $7,119 | | EAD Attributable to Common Stockholders | $3,992 | $4,529 | | EAD Per Diluted Share | $0.13 | $0.17 | | GAAP Net Income (Loss) Per Diluted Share | $0.32 | ($1.29) | Additional Information and Forward-Looking Statements The company provided details for a conference call and webcast, with additional information available in SEC filings and an investor presentation - An investor presentation with supplemental information for Q1 2024 is available on the Investor Relations section of the company's website[11] - A conference call and webcast were scheduled for May 6, 2024, at 5:00 pm Eastern Time to discuss the results[34][22] - The report includes forward-looking statements concerning the company's strategies and opportunities, which are not guarantees of future performance and are subject to risks outlined in SEC filings[12]