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): November 7, 2017
CHERRY HILL MORTGAGE INVESTMENT CORPORATION
(Exact name of registrant as specified in its charter)
Maryland | 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)
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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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Item 2.02. Results of Operations and Financial Condition.
On November 7, 2017, Cherry Hill Mortgage Investment Corporation (the “Company”) reported its results of operations for the three months ended September 30, 2017. 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 November 7, 2017.
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: November 7, 2017 | Chief Financial Officer |
EXHIBIT INDEX
Exhibit Number |
Description | |
99.1 | Press release, dated November 7, 2017 |
· |
GAAP net income applicable to common stockholders of $6.2 million, or $0.49 per diluted share
|
· |
Core earnings attributable to common stockholders of $6.6 million, or $0.52 per share
|
· |
Book value of $20.05 per share at September 30, 2017, a 0.6% increase net of the Company’s third quarter dividend
|
· |
Declared regular common dividend of $0.49 per share; annualized common dividend yield at market close was 11.0% at November 6, 2017
|
· |
Aggregate portfolio leverage stood at 5.0x at September 30, 2017
|
· |
On August 10, 2017, the Company closed an underwritten public offering of 2,200,000 shares of its 8.20% Series A Cumulative Redeemable Preferred Stock (the “Series A Preferred Stock”), resulting in net proceeds to the Company of approximately $58.1 million, before offering expenses. The underwriters partially exercised their overallotment option to purchase an additional 200,000 shares of Preferred Stock, and that transaction closed on August 17, 2017.
|
· |
Declared preferred dividend of $0.33028 per share for the short first period
|
Three Months Ended September 30,
|
||||||||
2017
|
2016
|
|||||||
Income
|
||||||||
Interest income
|
$
|
11,932
|
$
|
7,157
|
||||
Interest expense
|
6,096
|
1,877
|
||||||
Net interest income
|
5,836
|
5,280
|
||||||
Servicing fee income
|
6,307
|
2,365
|
||||||
Servicing costs
|
1,626
|
641
|
||||||
Net servicing income (loss)
|
4,681
|
1,724
|
||||||
Other income (loss)
|
||||||||
Realized gain (loss) on RMBS, net
|
(169
|
)
|
770
|
|||||
Realized gain (loss) on derivatives, net
|
(1,480
|
)
|
(2,147
|
)
|
||||
Unrealized gain (loss) on derivatives, net
|
1,684
|
3,199
|
||||||
Unrealized gain (loss) on investments in Excess MSRs
|
-
|
117
|
||||||
Unrealized gain (loss) on investments in MSRs
|
(2,334
|
)
|
(1,847
|
)
|
||||
Total Income
|
8,218
|
7,096
|
||||||
Expenses
|
||||||||
General and administrative expense
|
948
|
864
|
||||||
Management fee to affiliate
|
948
|
802
|
||||||
Total Expenses
|
1,896
|
1,666
|
||||||
Income (Loss) Before Income Taxes
|
6,322
|
5,430
|
||||||
(Benefit from) provision for corporate business taxes
|
(537
|
)
|
(89
|
)
|
||||
Net Income (Loss)
|
6,859
|
5,519
|
||||||
Net (income) loss allocated to noncontrolling interests in Operating Partnership
|
(93
|
)
|
(77
|
)
|
||||
Dividends on preferred stock
|
593
|
-
|
||||||
Net Income (Loss) Applicable to Common Stockholders
|
$
|
6,173
|
$
|
5,442
|
||||
Net income (Loss) Per Share of Common Stock
|
||||||||
Basic
|
$
|
0.49
|
$
|
0.72
|
||||
Diluted
|
$
|
0.49
|
$
|
0.72
|
||||
Weighted Average Number of Shares of Common Stock Outstanding
|
||||||||
Basic
|
12,700,348
|
7,511,653
|
||||||
Diluted
|
12,711,776
|
7,528,188
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Three Months Ended September 30,
|
||||||||
2017
|
2016
|
|||||||
Net income (loss)
|
$
|
6,859
|
$
|
5,519
|
||||
Other comprehensive income (loss):
|
||||||||
Net unrealized gain on RMBS
|
3,405
|
1,110
|
||||||
Reclassification of net realized (gain) loss on RMBS included in earnings
|
169
|
(770
|
)
|
|||||
Other comprehensive income
|
3,574
|
340
|
||||||
Comprehensive income
|
$
|
10,433
|
$
|
5,859
|
||||
Comprehensive income attributable to noncontrolling interests in Operating Partnership
|
142
|
99
|
||||||
Dividends on preferred stock
|
593
|
-
|
||||||
Comprehensive income attributable to common stockholders
|
$
|
9,698
|
$
|
5,760
|
Three Months Ended September 30,
|
||||||||
2017
|
2016 (1)
|
|||||||
Net income (loss)
|
$
|
6,859
|
$
|
5,519
|
||||
Realized (gain) loss on RMBS, net
|
169
|
(770
|
)
|
|||||
Realized loss on derivatives, net
|
1,480
|
2,147
|
||||||
Unrealized (gain) loss on derivatives, net
|
(1,684
|
)
|
(3,199
|
)
|
||||
Unrealized (gain) loss on investments in Excess MSRs
|
-
|
(117
|
)
|
|||||
Unrealized (gain) loss on investments in MSRs
|
2,334
|
1,847
|
||||||
Tax (benefit) expense on unrealized (gain) loss on MSRs
|
(643
|
)
|
(91
|
)
|
||||
Estimated 'catch up' premium amortization cost
|
-
|
21
|
||||||
Changes due to realization of expected cash flows
|
(1,975
|
)
|
(1,228
|
)
|
||||
Yield maintenance income
|
750
|
-
|
||||||
Total core earnings:
|
$
|
7,290
|
$
|
4,129
|
||||
Core earnings attributable to noncontrolling interests in Operating Partnership
|
(100
|
)
|
(76
|
)
|
||||
Dividends on preferred stock
|
593
|
-
|
||||||
Core Earnings Attributable to Common Stockholders
|
$
|
6,597
|
$
|
4,053
|
||||
Core Earnings Attributable to Common Stockholders, per Share
|
$
|
0.52
|
$
|
0.54
|
||||
GAAP Net income (Loss) Per Share of Common Stock
|
$
|
0.49
|
$
|
0.72
|