Cherry Hill Mortgage Investment Corporation (CHMI) reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.
As of September 30, 2024, total assets increased to $1,551.4 million from $1,393.0 million at the end of 2023. The fair value of Residential Mortgage-Backed Securities (RMBS) rose to $1,214.1 million, up from $1,012.1 million. However, total stockholders' equity decreased to $239.7 million from $258.4 million at the end of 2023.
In terms of revenue, interest income for Q3 2024 was $14.3 million, an increase from $12.9 million in Q3 2023. For the nine months ended September 30, 2024, interest income totaled $40.7 million, compared to $37.2 million in the same period last year. Conversely, servicing fee income declined to $11.7 million in Q3 2024 from $13.2 million in Q3 2023, and for the nine-month period, it fell to $36.9 million from $40.5 million.
The company reported a net loss of $12.4 million for Q3 2024, a stark contrast to a net income of $15.9 million in Q3 2023. For the nine months, net income was $396,000, compared to a loss of $1.8 million in the prior year. The net loss applicable to common stockholders for Q3 2024 was $14.8 million, compared to a profit of $13.1 million in Q3 2023.
Total expenses for Q3 2024 increased to $5.1 million from $3.4 million in Q3 2023. The company also reported a realized loss on RMBS of approximately $3.7 million for Q3 2024, down from $10.2 million in the same period last year.
Strategically, CHMI's board approved the internalization of management on July 9, 2024, transitioning from an externally managed structure to a fully integrated, internally managed mortgage REIT. This decision followed the cessation of RoundPoint Mortgage Servicing Corporation as a wholly owned subsidiary of Freedom Mortgage in September 2023.
The company has also initiated a preferred stock repurchase program, repurchasing 395,897 shares of Series B Preferred Stock at a weighted average price of $23.77 during the nine-month period ended September 30, 2024. No shares of Series A Preferred Stock or common stock were repurchased during this period.
Overall, CHMI's financial performance reflects a complex interplay of increased asset values and interest income, alongside significant losses and strategic shifts in management structure.
About Cherry Hill Mortgage Investment Corp
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