Maryland
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001-36099
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461315605
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(State or other jurisdiction
of incorporation)
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Commission
File Number:
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(IRS Employer
Identification No.)
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☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock, $0.01 par value
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CHMI
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New York Stock Exchange
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8.20% Series A Cumulative Redeemable Preferred Stock, $0.01 par value
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CHMI-PRA
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New York Stock Exchange
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8.250% Series B Fixed-to-Floating Rate Cumulative Redeemable
Preferred Stock, $0.01 par value
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CHMI-PRB
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New York Stock Exchange
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Item 2.02. |
Results of Operations and Financial Condition.
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Item 9.01. |
Financial Statements and Exhibits.
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CHERRY HILL MORTGAGE INVESTMENT CORPORATION
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||
By:
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/s/ Michael Hutchby
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Michael Hutchby
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||
Date: August 10, 2020
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Chief Financial Officer
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Exhibit
Number
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Description
|
|
Press release, dated August 10, 2020
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• |
GAAP net loss applicable to common stockholders of $12.4 million, or $0.73 per share
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• |
Core earnings attributable to common stockholders of $7.9 million, or $0.47 per share
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• |
Book value of $13.41 per share at June 30, 2020, a 2.3% reduction from $13.73 at March 31, 2020, net of the Company’s second quarter dividend. Approximately 70% of the reduction was due to paying half of the first quarter common dividend
in stock
|
• |
Declared regular common dividend of $0.27 per share, annualized common dividend yield at market close was 10.8% at August 7, 2020
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• |
Aggregate portfolio leverage stood at 4.4x at June 30, 2020
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• |
As of June 30, the Company had unrestricted cash of approximately $94.5 million
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Three Months Ended June 30,
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||||||||
2020
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2019
|
|||||||
(unaudited)
|
(unaudited)
|
|||||||
Income
|
||||||||
Interest income
|
$
|
10,132
|
$
|
17,216
|
||||
Interest expense
|
3,425
|
11,707
|
||||||
Net interest income
|
6,707
|
5,509
|
||||||
Servicing fee income
|
18,032
|
18,362
|
||||||
Servicing costs
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6,594
|
4,103
|
||||||
Net servicing income
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11,438
|
14,259
|
||||||
Other income (loss)
|
||||||||
Realized loss on RMBS, net
|
(1,769
|
)
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-
|
|||||
Realized loss on investments in MSRs, net
|
(11,347
|
)
|
-
|
|||||
Realized gain (loss) on derivatives, net
|
4,558
|
(365
|
)
|
|||||
Realized loss on acquired assets, net
|
(548
|
)
|
-
|
|||||
Unrealized loss on derivatives, net
|
(4,581
|
)
|
(3,819
|
)
|
||||
Unrealized gain on investments in Excess MSRs
|
-
|
-
|
||||||
Unrealized loss on investments in MSRs
|
(17,025
|
)
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(44,042
|
)
|
||||
Total Loss
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(12,567
|
)
|
(28,458
|
)
|
||||
Expenses
|
||||||||
General and administrative expense
|
1,420
|
1,138
|
||||||
Management fee to affiliate
|
1,974
|
1,934
|
||||||
Total Expenses
|
3,394
|
3,072
|
||||||
Loss Before Income Taxes
|
(15,961
|
)
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(31,530
|
)
|
||||
Benefit from corporate business taxes
|
(5,837
|
)
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(4,372
|
)
|
||||
Net Loss
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(10,124
|
)
|
(27,158
|
)
|
||||
Net income loss allocated to noncontrolling interests in Operating Partnership
|
180
|
438
|
||||||
Dividends on preferred stock
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2,461
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2,593
|
||||||
Net Loss Applicable to Common Stockholders
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$
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(12,405
|
)
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$
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(29,313
|
)
|
||
Net Loss Per Share of Common Stock
|
||||||||
Basic
|
$
|
(0.73
|
)
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$
|
(1.75
|
)
|
||
Diluted
|
$
|
(0.73
|
)
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$
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(1.75
|
)
|
||
Weighted Average Number of Shares of Common Stock Outstanding
|
||||||||
Basic
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16,881,987
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16,776,472
|
||||||
Diluted
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16,895,408
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16,789,261
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Three Months Ended June 30,
|
||||||||
2020
|
2019
|
|||||||
(unaudited)
|
(unaudited)
|
|||||||
Net Loss
|
$
|
(10,124
|
)
|
$
|
(27,158
|
)
|
||
Other comprehensive income:
|
||||||||
Net unrealized gain on RMBS
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14,017
|
25,536
|
||||||
Reclassification of net realized gain on RMBS included in earnings
|
1,769
|
-
|
||||||
Other comprehensive income
|
15,786
|
25,536
|
||||||
Comprehensive income (loss)
|
$
|
5,662
|
$
|
(1,622
|
)
|
|||
Comprehensive income (loss) attributable to noncontrolling interests in Operating Partnership
|
113
|
(29
|
)
|
|||||
Dividends on preferred stock
|
2,461
|
2,593
|
||||||
Comprehensive income (loss) attributable to common stockholders
|
$
|
3,088
|
$
|
(4,186
|
)
|
Three Months Ended June 30,
|
||||||||
2020
|
2019
|
|||||||
(unaudited)
|
(unaudited)
|
|||||||
Net Loss
|
$
|
(10,124
|
)
|
$
|
(27,158
|
)
|
||
Realized loss on RMBS, net
|
1,769
|
-
|
||||||
Realized loss (gain) on derivatives, net
|
(4,558
|
)
|
365
|
|||||
Realized loss on investments in MSRs, net
|
11,347
|
-
|
||||||
Realized loss on acquired assets, net
|
548
|
-
|
||||||
Unrealized loss on derivatives, net
|
4,581
|
3,819
|
||||||
Unrealized loss (gain) on investments in MSRs, net of estimated MSR amortization
|
11,801
|
38,733
|
(1) |
|||||
Tax expense on unrealized gain on MSRs
|
(4,832
|
)
|
(4,249
|
)
|
||||
Total core earnings:
|
$
|
10,532
|
$
|
11,510
|
||||
Core earnings attributable to noncontrolling interests in Operating Partnership
|
(193
|
)
|
(185
|
)
|
||||
Dividends on preferred stock
|
2,461
|
2,593
|
||||||
Core Earnings Attributable to Common Stockholders
|
$
|
7,878
|
$
|
8,732
|
||||
Core Earnings Attributable to Common Stockholders, per Diluted Share
|
$
|
0.47
|
$
|
0.52
|
||||
GAAP Net Loss Per Share of Common Stock, per Diluted Share
|
$
|
(0.73
|
)
|
$
|
(1.75
|
)
|