CHMI Q2 2026: Net Income Swings Positive, Merger with MITT Announced
CHMI sits 29% above its 52-week low of $2.17 on elevated volume (17× avg).
Summary
Cherry Hill Mortgage reported Q2 2026 net income of $1.3 million for common stockholders, a significant improvement from the prior-year loss, and disclosed a definitive merger agreement with MITT at a 29% premium.
Key Events · Earnings and Guidance · CHMI
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Q2 2026 Net Income Swings Positive
Net income applicable to common stockholders was $1.3 million, or $0.04 per diluted share, compared to a loss of $0.9 million in Q2 2025. The improvement was driven by higher net interest income and realized derivative gains.
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Credit Loss on Promissory Note
The company recorded a $2.3 million provision for credit losses on a promissory note receivable, reducing its net carrying value to $0.9 million. An additional $0.5 million impairment was taken on a strategic investment.
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Merger Agreement with MITT Announced
On August 9, 2026, CHMI entered into a definitive merger agreement with TPG Mortgage Investment Trust (MITT). CHMI shareholders will receive 0.3063 MITT shares plus $0.93 in cash per CHMI share, a 29% premium based on the announcement date. The deal is expected to close in Q4 2026.
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New Executive Compensation Plan
The 2026 Executive Compensation Plan was adopted, introducing short-term and long-term incentive programs tied to EAD ROAE, relative price/book value, and total shareholder return metrics.
Analysis · CHMI · Real Estate & Construction
A sharp reversal from the $10.2 million loss a year ago, Cherry Hill Mortgage posted net income of $1.3 million for common stockholders in Q2 2026. The quarter included a $2.8 million credit loss on a promissory note and $0.2 million in merger-related costs. The filing also disclosed a definitive merger agreement with TPG Mortgage Investment Trust (MITT) signed August 9, 2026, valuing CHMI at a 29% premium. The merger is expected to close in Q4 2026, subject to shareholder approvals. The combination of improved earnings and a pending acquisition makes this a critical update for investors.
At the time of this filing, CHMI was trading at $2.79 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $102.5M. The 52-week trading range was $2.17 to $3.04. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.