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Cherry Hill Mortgage Investment Corporation Announces Second Quarter 2014 Results

Cherry Hill Mortgage Investment Corporation (NYSE:CHMI) (“Cherry Hill” or the “Company”), today reported results for the second quarter of 2014.

Highlights

  • Generated comprehensive income of $4.9 million, or $0.66 per common share
  • Realized income from Excess MSR portfolio of approximately $3.6 million
  • Book value per Share increased to $21.62 at June 30, 2014 from $21.47 at March 31, 2014.
  • 10.2% annualized dividend yield based on June 30, 2014 closing stock price of $20.05 per common share
  • Aggregate portfolio leverage remained low at 1.8x

“Our second quarter results reflect the continued strong momentum in our business. We produced net interest income in line with management expectations and paid dividends to our shareholders consistent with prior quarters,” stated Jay Lown, Cherry Hill Mortgage Investment Corporation’s President and Chief Investment Officer. Mr. Lown added, “We see a wide range of opportunities in the residential mortgage space that may also help us enhance our ability to optimally construct our overall portfolio.”

Operating Results

Cherry Hill’s reported GAAP net income consisted of the following: $5.1 million of net interest income, a realized net gain of $75,000 on the RMBS portfolio, net realized and unrealized losses on derivatives of $2.9 million, a $1.6 million change in carrying value of the Excess MSR portfolio, due to market valuation adjustments, and administrative expenses and management fees paid to Cherry Hill’s external manager in the aggregate amount of approximately $1.3 million. Cherry Hill reported GAAP net loss for the second quarter of 2014 of $652,000 or $0.09 per diluted weighted average common share outstanding.

   

Three Months Ended

June 30, 2014 1

Income
Interest income $ 6,137
Interest expense   1,006
Net interest income 5,131
Other income (loss)
Realized gain (loss) on Agency RMBS, net 75
Realized gain on derivatives, net (187)
Unrealized gain (loss) on derivatives, net (2,705)
Change in fair value of investments in Excess Mortgage Servicing Rights   (1,648)
Total Income   $666
Expenses
General and administrative expense 642
Management fee to affiliate   679
Total Expenses    
Net Income (Loss)   (655)
Net income allocated to LTIP-OP Units   3
Income Applicable to Common Stockholders $ (652)
Income (Loss) Per Share of Common Stock
Basic $ (0.09)
Diluted $ (0.09)
Weighted Average Number of Shares of Common Stock Outstanding
Basic 7,504,572
Diluted 7,509,543
 

In addition, net unrealized gain on our RMBS portfolio for the quarter was approximately $5.6 million.

   

Three Months Ended June 30, 2013 1

Net income (loss) $ (655)
Other comprehensive income (loss):
Net unrealized gain (loss) on RMBS   5,595
Other comprehensive income (loss)   5,595
Comprehensive income (loss) $ 4,940
 

1. Unaudited

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