Company: CHMI-PB
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001140361-25-017536
Chunk: 20

Company: Cherry Hill Mortgage Investment Corp
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 2
Chunk 20
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 any gain or loss on the capital used to purchase the MSR. EAD also includes interest rate swap periodic interest income (expense) and drop income on TBA dollar roll transactions, which are included in
              “Realized gain (loss) on derivatives, net” on the consolidated statements of income (loss). EAD is adjusted to exclude outstanding LTIP-OP Units in our Operating Partnership and dividends paid on our preferred stock.

            EAD is provided for purposes of potential comparability to other issuers that invest in residential mortgage-related assets. We believe providing investors with EAD, in
              addition to related GAAP financial measures, may provide investors some insight into our ongoing operational performance. However, the concept of EAD does have significant limitations, including the exclusion of realized and unrealized gains
              (losses), and given the apparent lack of a consistent methodology among issuers for defining EAD, it may not be comparable to similarly titled measures of other issuers, which define EAD differently from us and each other. As a result, EAD
              should not be considered a substitute for our GAAP net income (loss) or as a measure of our liquidity. While EAD is one indicia of the Company’s earnings capacity, it is not the only factor considered
              in setting a dividend and is not the same as REIT taxable income which is calculated in accordance with the rules of the IRS.

            Earnings Available for Distribution

            EAD for the three-month period ended March 31, 2025 as compared to the three month period ended December 31, 2024 increased by approximately $2.1 million, or $0.07 per average
              common share due to an increase in drop income on TBA dollar rolls and a decrease in borrowing costs as well as Internalization expenses.

            EAD for the three-month period ended March 31, 2025 as compared to the three month period ended March 31, 2024 increased by approximately $1.4 million, or $0.04 per average
              common share primarily due to a decrease in borrowing costs.

            The following table reconciles the GAAP measure of net income (loss) to EAD and related per average common share amounts, for the periods indicated (dollars in thousands):

                    Three Months Ended

                    March 31, 2025

                    December 31, 2024

                    March 31, 2024

                    Net Income (Loss)

                    $

                    (