UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 10, 2016
CHERRY HILL MORTGAGE INVESTMENT CORPORATION
(Exact name of registrant as specified in its charter)
Delaware | 001-36099 | 461315605 | ||
(State or other jurisdiction of incorporation) |
Commission File Number: |
(IRS Employer Identification No.) |
301 Harper Drive, Suite 110
Moorestown, NJ 08057
(Address of principal executive offices, including zip code)
877.870.7005
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
On May 10, 2016, Cherry Hill Mortgage Investment Corporation (the “Company”) reported its results of operations for the three months ended March 31, 2016. A copy of the press release is furnished as Exhibit 99.1.
The information in this Current Report on Form 8-K, including the exhibit attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, and shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits:
99.1 Press release, dated May 10, 2016.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
CHERRY HILL MORTGAGE INVESTMENT CORPORATION | ||||||
By: | /s/ Martin J. Levine | |||||
Martin J. Levine | ||||||
Date: May 10, 2016 | Chief Financial Officer |
EXHIBIT INDEX
Exhibit Number |
Description | |
99.1 | Press release, dated May 10, 2016 |
· | GAAP net loss applicable to common stockholders was $7.1 million, or $0.94 per diluted share, for first quarter 2016 |
· | Core earnings were $0.54 per share for first quarter 2016 |
· | Declared dividend of $0.49 per share for first quarter 2016 |
· | Book value per share was $19.68 as of March 31, 2016, as compared to $20.13 as of December 31, 2015 |
· | Annualized dividend yield was 13.8% based on closing stock price on March 31, 2016 |
· | Aggregate portfolio leverage stood at 3.15x as of March 31, 2016 |
Three Months Ended March 31,
|
||||||||
2016
|
2015
|
|||||||
Income
|
||||||||
Interest income
|
$
|
5,188
|
$
|
5,827
|
||||
Interest expense
|
1,657
|
1,235
|
||||||
Net interest income
|
3,531
|
4,592
|
||||||
Servicing fee income
|
1,495
|
-
|
||||||
Servicing costs
|
402
|
-
|
||||||
Net servicing income (loss)
|
1,093
|
-
|
||||||
Other income (loss)
|
||||||||
Realized gain (loss) on RMBS, net
|
320
|
307
|
||||||
Realized gain (loss) on derivatives, net
|
(1,461
|
)
|
(1,242
|
)
|
||||
Unrealized gain (loss) on derivatives, net
|
(5,198
|
)
|
(2,542
|
)
|
||||
Unrealized gain (loss) on investments in Excess MSRs
|
(2,307
|
)
|
(2,117
|
)
|
||||
Unrealized gain (loss) on investments in MSRs
|
(2,232
|
)
|
-
|
|||||
Total Income (Loss)
|
(6,254
|
)
|
(1,002
|
)
|
||||
Expenses
|
||||||||
General and administrative expense
|
808
|
742
|
||||||
Management fee to affiliate
|
690
|
690
|
||||||
Total Expenses
|
1,498
|
1,432
|
||||||
Income (Loss) Before Income Taxes
|
(7,752
|
)
|
(2,434
|
)
|
||||
Provision for corporate business taxes
|
(590
|
)
|
-
|
|||||
Net Income (Loss)
|
(7,162
|
)
|
(2,434
|
)
|
||||
Net (Income) loss allocated to noncontrolling interests
|
99
|
22
|
||||||
Net Income (Loss) Applicable to Common Stockholders
|
$
|
(7,063
|
)
|
$
|
(2,412
|
)
|
||
Net income (Loss) Per Share of Common Stock
|
||||||||
Basic
|
$
|
(0.94
|
)
|
$
|
(0.32
|
)
|
||
Diluted
|
$
|
(0.94
|
)
|
$
|
(0.32
|
)
|
||
Weighted Average Number of Shares of Common Stock Outstanding
|
||||||||
Basic
|
7,509,543
|
7,509,543
|
||||||
Diluted
|
7,519,038
|
7,509,543
|
Three Months Ended March 31,
|
||||||||
2016
|
2015
|
|||||||
Net income (loss)
|
$
|
(7,162
|
)
|
$
|
(2,434
|
)
|
||
Other comprehensive income (loss):
|
||||||||
Net unrealized gain (loss) on RMBS
|
7,652
|
2,791
|
||||||
Reclassification of net realized (gain) loss on RMBS in earnings
|
(320
|
)
|
(307
|
)
|
||||
Other comprehensive income (loss)
|
7,332
|
2,484
|
||||||
Comprehensive income (loss)
|
$
|
170
|
$
|
50
|
||||
Comprehensive income (loss) attributable to noncontrolling interests
|
2
|
0
|
(A)
|
|||||
Comprehensive income (loss) attributable to common stockholders
|
$
|
168
|
$
|
50
|
(A) | de minimis ($458.00 rounds to $0.00). |
Three Months Ended March 31,
|
||||||||
2016
|
2015
|
|||||||
Net income (loss)
|
$
|
(7,162
|
)
|
$
|
(2,434
|
)
|
||
Realized (gain) loss on RMBS, net
|
(320
|
)
|
(307
|
)
|
||||
Realized (gain) loss on derivatives, net
|
1,461
|
1,242
|
||||||
Unrealized (gain) loss on derivatives, net
|
5,198
|
2,542
|
||||||
Unrealized (gain) loss on investments in Excess MSRs
|
2,307
|
2,117
|
||||||
Unrealized (gain) loss on investments in MSRs
|
2,232
|
-
|
||||||
Tax (benefit) expense on unrealized (gain) loss on MSRs
|
(629
|
)
|
-
|
|||||
Estimated "catch up" premium amortization (benefit) cost
|
1,617
|
645
|
||||||
Amortization of MSRs
|
(616
|
)
|
-
|
|||||
Total core earnings:
|
$
|
4,088
|
$
|
3,805
|
||||
Core earnings attributable to noncontrolling interests
|
(56
|
)
|
(35
|
)
|
||||
Core Earnings Attributable to Common Stockholders
|
$
|
4,032
|
$
|
3,770
|
||||
Core Earnings Attributable to Common Stockholders, per Share
|
$
|
0.54
|
$
|
0.50
|
||||
GAAP Net income (Loss) Per Share of Common Stock
|
$
|
(0.94
|
)
|
$
|
(0.32
|
)
|