Cherry Hill Mortgage Investment CorpCHMI
Cherry Hill Mortgage Investment Corp Segments Disclosure
Note 3 — Segment Reporting
Public
companies are required to disclose certain information about their reportable operating segments, which are defined as significant components of an enterprise for which separate financial information is available and is evaluated on a regular basis
by the chief operating decision maker (“CODM”) in assessing performance of the segment and in deciding how to allocate resources to an individual segment. The structure of the Company’s reportable segments is determined based on the financial information used by the Company’s CODM to
assess performance and allocate resources. The Company’s CODM is its Chief Executive Officer.
The two reportable segments that the
Company conducts its business through are investments in RMBS and investments in Servicing Related Assets, which are the primary revenue generating
assets of the Company. Activities that
are not directly attributable or not allocated to any of the reportable segments are reported under the “All Other” category as a reconciling item to the Company’s consolidated financial statements. The activities within the “All Other”
category consists of certain corporate level expenses including general and administrative expenses, compensation and benefits and management fees paid to affiliate prior to Internalization. The Company’s segments align with its primary
business operations and how the CODM reviews its operating results. The primary measure of profitability used to evaluate segment performance and allocate resources is comprehensive income (loss). Analysis of the information presented in the
tables below is presented to the CODM on a regular basis to assess segment profitability as well as to identify risks and opportunities to determine resource allocation.
The accounting principles applied at the operating segment level in determining comprehensive income (loss) are the same as those
applied at the consolidated financial statement level. Compensation and benefits as well as general and administrative expenses are allocated to the reportable segments using a reasonable allocation key that takes into account the activities giving
rise to such expenses.
Summary financial data with respect to the Company’s reportable segments is given below, together with the data for the Company as a whole (dollars in
thousands):
|
Servicing
Related Assets
|
RMBS
|
All Other
|
Total
|
|||||||||||||
|
Income Statement
|
||||||||||||||||
|
Year Ended December 31, 2024
|
||||||||||||||||
|
Interest income
|
$
|
5
|
$
|
55,793
|
$
|
-
|
$
|
55,798
|
||||||||
|
Interest expense
|
1,404
|
54,365
|
-
|
55,769
|
||||||||||||
|
Net interest income (expense)
|
(1,399
|
)
|
1,428
|
-
|
29
|
|||||||||||
|
Servicing fee income
|
48,527
|
-
|
-
|
48,527
|
||||||||||||
|
Servicing costs
|
12,418
|
-
|
-
|
12,418
|
||||||||||||
|
Net servicing income
|
36,109
|
-
|
-
|
36,109
|
||||||||||||
|
Other income (expense) (A)
|
(8,117
|
)
|
6,554
|
-
|
(1,563
|
)
|
||||||||||
|
Other operating expenses (B)
|
(3,910
|
)
|
(1,141
|
)
|
(13,212
|
)
|
(18,263
|
)
|
||||||||
|
Provision for corporate business taxes
|
(4,102
|
)
|
-
|
-
|
(4,102
|
)
|
||||||||||
|
Net other comprehensive income (loss)
|
- | (4,725 | ) | - | (4,725 | ) | ||||||||||
|
Comprehensive income (loss)
|
$ |
18,581 | $ |
2,116 | $ |
(13,212 | ) | $ |
7,485 | |||||||
|
Year Ended December 31, 2023
|
||||||||||||||||
|
Interest income
|
$
|
-
|
$
|
49,985
|
$
|
-
|
$
|
49,985
|
||||||||
|
Interest expense
|
1,572
|
50,070
|
-
|
51,642
|
||||||||||||
|
Net interest expense
|
(1,572
|
)
|
(85
|
)
|
-
|
(1,657
|
)
|
|||||||||
|
Servicing fee income
|
53,427
|
-
|
-
|
53,427
|
||||||||||||
|
Servicing costs
|
11,248
|
-
|
-
|
11,248
|
||||||||||||
|
Net servicing income
|
42,179
|
-
|
-
|
42,179
|
||||||||||||
|
Other expense (A)
|
(29,443
|
)
|
(32,281
|
)
|
-
|
(61,724
|
)
|
|||||||||
|
Other operating expenses (B)
|
(3,004
|
)
|
(664
|
)
|
(10,062
|
)
|
(13,730
|
)
|
||||||||
|
Provision for corporate business taxes
|
(523
|
)
|
-
|
-
|
(523
|
)
|
||||||||||
|
Net other comprehensive income (loss)
|
- | 26,559 | - | 26,559 | ||||||||||||
|
Comprehensive income (loss)
|
$ |
7,637 | $ |
(6,471 | ) | $ |
(10,062 | ) | $ |
(8,896 | ) | |||||
|
Year Ended December 31, 2022
|
||||||||||||||||
|
Interest income
|
$
|
-
|
$
|
29,642
|
$
|
-
|
$
|
29,642
|
||||||||
|
Interest expense
|
3,837
|
13,726
|
-
|
17,563
|
||||||||||||
|
Net interest income (expense)
|
(3,837
|
)
|
15,916
|
-
|
12,079
|
|||||||||||
|
Servicing fee income
|
53,430
|
-
|
-
|
53,430
|
||||||||||||
|
Servicing costs
|
11,837
|
-
|
-
|
11,837
|
||||||||||||
|
Net servicing income
|
41,593
|
-
|
-
|
41,593
|
||||||||||||
|
Other income (expense) (A)
|
(26,655
|
)
|
13,176
|
-
|
(13,479
|
)
|
||||||||||
|
Other operating expenses (B)
|
(2,755
|
)
|
(692
|
)
|
(9,487
|
)
|
(12,934
|
)
|
||||||||
|
Provision for corporate business taxes
|
(5,070
|
)
|
-
|
-
|
(5,070
|
)
|
||||||||||
|
Net other comprehensive income (loss)
|
- | (36,631 | ) | - | (36,631 | ) | ||||||||||
|
Comprehensive income (loss)
|
$ |
3,276 | $ |
(8,231 | ) | $ |
(9,487 | ) | $ |
(14,442 | ) | |||||
| (A) |
Included in other income (expense) are realized
and unrealized gains (losses) on Servicing Related Assets, RMBS and derivatives.
|
| (B) |
Included in other operating expenses are
general and administrative expenses, compensation and benefits and management fee to affiliate.
|
|
Servicing
Related Assets
|
RMBS
|
All Other
|
Total
|
|||||||||||||
|
Balance Sheet
|
||||||||||||||||
|
December 31, 2024
|
||||||||||||||||
|
Investments
|
$
|
233,658
|
$
|
1,122,420
|
$
|
-
|
$
|
1,356,078
|
||||||||
|
Other assets
|
28,874
|
59,159
|
47,064
|
135,097
|
||||||||||||
|
Total assets
|
262,532
|
1,181,579
|
47,064
|
1,491,175
|
||||||||||||
|
Debt
|
151,226
|
1,077,257
|
-
|
1,228,483
|
||||||||||||
|
Other liabilities
|
4,290
|
15,010
|
9,770
|
29,070
|
||||||||||||
|
Total liabilities
|
155,516
|
1,092,267
|
9,770
|
1,257,553
|
||||||||||||
|
Net Assets
|
$
|
107,016
|
$
|
89,312
|
$
|
37,294
|
$
|
233,622
|
||||||||
|
December 31, 2023
|
||||||||||||||||
|
Investments
|
$
|
253,629
|
$
|
1,012,130
|
$
|
-
|
$
|
1,265,759
|
||||||||
|
Other assets
|
33,785
|
39,939
|
53,509
|
127,233
|
||||||||||||
|
Total assets
|
287,414
|
1,052,069
|
53,509
|
1,392,992
|
||||||||||||
|
Debt
|
169,314
|
903,489
|
-
|
1,072,803
|
||||||||||||
|
Other liabilities
|
4,240
|
47,990
|
9,584
|
61,814
|
||||||||||||
|
Total liabilities
|
173,554
|
951,479
|
9,584
|
1,134,617
|
||||||||||||
|
Net Assets
|
$
|
113,860
|
$
|
100,590
|
$
|
43,925
|
$
|
258,375
|
||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 6, 2025 | Showing above |
| 2016 | Mar 15, 2017 | |
| 2015 | Mar 15, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.