NEW YORK, August 05, 2026--(BUSINESS WIRE)--Chimera Investment Corporation (NYSE: CIM) today announced its financial results for the second quarter ended June 30, 2026.
Executive Summary:
Metric | Value |
Q2 2026 GAAP Net Income (Loss) | $(4) million, or $(0.05) per diluted common share |
Earnings available for distribution (1) | $39 million, or $0.46 per diluted common share |
GAAP Book Value per common share | $17.75 per common share |
Economic Return (2) | (0.76)% |
(1) Earnings available for distribution per adjusted diluted common share is a non-GAAP measure. See additional discussion on page 6. | |
(2) Our economic return is measured by the change in GAAP book value per common share plus common stock dividend. |
Business Highlights:
Maintained dividend coverage and strong liquidity position.
Spread movements and changes in interest rates impacted book value.
Generated Earnings Available for Distribution from both Investment Portfolio and Residential Origination segments.
Investment Portfolio Segment
Completed two re-securitizations of residential mortgage loans with an aggregate principal balance of $487 million.
Purchased an additional $122 million of newly originated loans from HomeXpress, bringing loans retained at quarter end to $301 million.
Advanced plans for the inaugural securitization using HomeXpress collateral, which serves to integrate both segments.
Residential Origination Segment
Originated volume of $1.1 billion, up 30% vs prior year period1, demonstrating platform scale and capacity.
Generated $9 million of net income and $12 million of EBTDA, representing an annualized EBTDA ROE of 17.3%2.
Product mix shifted, with consumer Non-QM representing 47%, Investor Loans 48%, and QM at 5%.
"Chimera delivered resilient second quarter results amidst continued macroeconomic and geopolitical uncertainty, scaling our loan origination business, and redeploying capital toward higher-return opportunities," said Phillip J. Kardis II, President and CEO. "Earnings available for distribution were $0.46 per share for the second quarter and $1.00 for the first half of the year, supporting the $0.45 quarterly dividend. As we enter the second half, we remain focused on disciplined execution and sustaining dividend coverage over the course of the year."
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1 Reflects HomeXpress standalone results. HomeXpress was acquired on October 1, 2025 and is not included in Chimera's consolidated results prior to that date. |
2 EBTDA ROE, or return on equity, represents the EBTDA divided by Chimera's initial capital investment of $272 million, annualized. |
Second Quarter 2026 Earnings Call
Chimera Investment Corporation will host a conference call and live audio webcast to discuss the results at 8:30 AM ET on Wednesday, August 5, 2026.
Call-in Number:
U.S. Toll Free: (866) 604-1613
International: (201) 689-7810
Conference Call Replay:
U.S. Toll Free: (877) 660-6853
International: (201) 612-7415
Conference ID: 13760724
A replay of the call will be available for a limited time and can be accessed via the dial-in numbers above or through the webcast archive on the company's website.
Other Information
Chimera Investment Corporation (NYSE: CIM) is a diversified, internally managed REIT, that serves the U.S. residential real estate market. Through its Investment Portfolio and Residential Origination segments, the company acquires, manages, finances and originates residential mortgage and real estate-related assets, with the objective of delivering attractive risk-adjusted returns to shareholders.
CHIMERA INVESTMENT CORPORATION | ||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||
(dollars in thousands, except share and per share data) | ||||||||
(Unaudited) | ||||||||
June 30, 2026 | December 31, 2025 | |||||||
Assets: | ||||||||
Cash and cash equivalents | $ | 444,041 | $ | 278,582 | ||||
Non-Agency RMBS, at fair value (net of allowance for credit losses of $53 million and $43 million, respectively) | 727,621 | 817,280 | ||||||
Agency MBS, at fair value | 5,264,559 | 3,463,485 | ||||||
Loans held for investment, at fair value | 7,890,790 | 9,803,615 | ||||||
Loans held-for-sale, at fair value | 1,126,461 | 896,117 | ||||||
Accrued interest receivable | 76,416 | 78,691 | ||||||
Other assets | 430,042 | 408,291 | ||||||
Interests in MSR financing receivables | 35,471 | 37,294 | ||||||
Derivatives, at fair value, net | 49,647 | 25,187 | ||||||
Total assets (1) | $ | 16,045,048 | $ | 15,808,542 | ||||
Liabilities: | ||||||||
Secured financing agreements ($8.6 billion and $7.4 billion pledged as collateral, respectively, and includes $284 million and $299 million at fair value, respectively) | $ | 7,725,542 | $ | 6,031,182 | ||||
Securitized debt, collateralized by Non-Agency RMBS ($195 million and $210 million pledged as collateral, respectively) | 63,939 | 66,579 | ||||||
Securitized debt at fair value, collateralized by Loans held for investment ($7.5 billion and $9.4 billion pledged as collateral, respectively) | 5,408,277 | 6,721,302 | ||||||
Long term debt | 252,551 | 251,528 | ||||||
Payable for investments purchased | — | 3,267 | ||||||
Accrued interest payable | 41,621 | 43,032 | ||||||
Dividends payable | 41,973 | 34,891 | ||||||
Accounts payable and other liabilities | 95,519 | 82,308 | ||||||
Derivatives, at fair value, net | — | 1,759 | ||||||
Total liabilities (1) | $ | 13,629,422 | $ | 13,235,848 | ||||
Stockholders' Equity: | ||||||||
Preferred Stock, par value of $0.01 per share, 100,000,000 shares authorized: | ||||||||
8.00% Series A cumulative redeemable: 5,800,000 shares issued and outstanding, respectively ($145,000 liquidation preference) | $ | 58 | $ | 58 | ||||
8.00% Series B cumulative redeemable: 13,000,000 shares issued and outstanding, respectively ($325,000 liquidation preference) | 130 | 130 | ||||||
7.75% Series C cumulative redeemable: 10,400,000 shares issued and outstanding, respectively ($260,000 liquidation preference) | 104 | 104 | ||||||
8.00% Series D cumulative redeemable: 8,000,000 shares issued and outstanding, respectively ($200,000 liquidation preference) | 80 | 80 | ||||||
Common stock: par value $0.01 per share; 166,666,667 shares authorized, 83,711,380 and 83,402,145 shares issued and outstanding, respectively | 837 | 834 | ||||||
Additional paid-in-capital | 4,435,369 | 4,429,009 | ||||||
Accumulated other comprehensive income | 128,984 | 146,295 | ||||||
Cumulative earnings | 4,545,067 | 4,571,610 | ||||||
Cumulative distributions to stockholders | (6,695,003 | ) | (6,575,426 | ) | ||||
Total stockholders' equity | $ | 2,415,626 | $ | 2,572,694 | ||||
Total liabilities and stockholders' equity | $ | 16,045,048 | $ | 15,808,542 |
(1) The Company's Consolidated Statements of Financial Condition include assets of consolidated variable interest entities, or VIEs, that can only be used to settle obligations and liabilities of the VIE for which creditors do not have recourse to the primary beneficiary (Chimera Investment Corporation). As of June 30, 2026, and December 31, 2025, total assets of consolidated VIEs were $7,491,943 and $9,215,343, respectively, and total liabilities of consolidated VIEs were $5,302,706 and $6,533,891, respectively. |
CHIMERA INVESTMENT CORPORATION | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(dollars in thousands, except share and per share data) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
For the Quarters Ended | For the Six Months Ended | |||||||||||||||
June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |||||||||||||
Net Interest Income: | ||||||||||||||||
Interest income (1) | $ | 221,625 | $ | 201,297 | $ | 440,920 | $ | 391,914 | ||||||||
Interest expense (2) | 151,116 | 135,287 | 295,408 | 256,684 | ||||||||||||
Net interest income | 70,509 | 66,010 | 145,512 | 135,230 | ||||||||||||
Increase in provision for credit losses | 7,192 | 4,409 | 10,016 | 7,796 | ||||||||||||
Other income (losses): | ||||||||||||||||
Net unrealized gains (losses) on derivatives | 15,398 | (2,554 | ) | 33,548 | (9,024 | ) | ||||||||||
Realized gains (losses) on derivatives | 9,527 | (17,954 | ) | 12,397 | (17,872 | ) | ||||||||||
Periodic interest on derivatives, net | 2,061 | 5,067 | 3,895 | 9,202 | ||||||||||||
Net gains (losses) on derivatives | 26,986 | (15,441 | ) | 49,840 | (17,694 | ) | ||||||||||
Investment management and advisory fees | 6,540 | 8,810 | 13,704 | 17,745 | ||||||||||||
Interest income from investment in MSR financing receivables, net (3) | 838 | — | 3,149 | — | ||||||||||||
Net unrealized gains (losses) on financial instruments at fair value | (43,386 | ) | 6,971 | (80,923 | ) | 135,866 | ||||||||||
Net realized gains (losses) on sales of investments | (9,623 | ) | (1,915 | ) | (50,051 | ) | (1,915 | ) | ||||||||
Gains (losses) on extinguishment of debt | (2,748 | ) | — | (41,605 | ) | 2,122 | ||||||||||
Other investment gains (losses) | 1,229 | 2,953 | 320 | 2,536 | ||||||||||||
Gain on origination and sale of loans, net | 22,210 | — | 43,595 | — | ||||||||||||
Total other income (losses) | 2,046 | 1,378 | (61,971 | ) | 138,660 | |||||||||||
Other expenses: | ||||||||||||||||
Compensation and benefits (4) | 25,102 | 11,660 | 51,808 | 24,745 | ||||||||||||
General and administrative expenses | 11,479 | 6,815 | 23,640 | 13,721 | ||||||||||||
Servicing and asset manager fees | 4,431 | 7,306 | 9,953 | 14,737 | ||||||||||||
Depreciation, amortization, and impairment of intangible assets | 4,076 | 949 | 13,725 | 1,902 | ||||||||||||
Transaction expenses | 3,207 | 390 | 3,305 | 6,077 | ||||||||||||
Total other expenses | 48,295 | 27,120 | 102,431 | 61,182 | ||||||||||||
Income (loss) before income taxes | 17,068 | 35,859 | (28,906 | ) | 204,912 | |||||||||||
Income tax (benefit) expense | (301 | ) | 409 | (2,365 | ) | 2,165 | ||||||||||
Net income (loss) | $ | 17,369 | $ | 35,450 | $ | (26,541 | ) | $ | 202,747 | |||||||
Dividends on preferred stock | $ | 21,381 | $ | 21,426 | $ | 42,478 | $ | 42,783 | ||||||||
Net income (loss) available to common shareholders | $ | (4,012 | ) | $ | 14,024 | $ | (69,019 | ) | $ | 159,964 | ||||||
Net income (loss) per share available to common shareholders: | ||||||||||||||||
Basic | $ | (0.05 | ) | $ | 0.17 | $ | (0.82 | ) | $ | 1.97 | ||||||
Diluted | $ | (0.05 | ) | $ | 0.17 | $ | (0.82 | ) | $ | 1.94 | ||||||
Weighted average number of common shares outstanding: | ||||||||||||||||
Basic | 83,813,331 | 81,408,087 | 83,739,672 | 81,386,680 | ||||||||||||
Diluted | 83,813,331 | 82,600,108 | 83,739,672 | 82,564,708 |
(1) Includes interest income of consolidated VIEs of $106,189 and $141,818 for the quarters ended June 30, 2026 and 2025, respectively, and $235,258 and $286,220 for the six months ended June 30, 2026 and 2025, respectively. |
(2) Includes interest expense of consolidated VIEs of $54,598 and $73,038 for the quarters ended June 30, 2026 and 2025, respectively, and $118,478 and $142,690 for the six months ended June 30, 2026 and 2025, respectively. |
(3) Includes interest income from investment in MSR financing receivables of a consolidated VIE of $454 for the quarter ended June 30, 2026 and $1,850 for the six months ended June 30, 2026. The Company did not hold any interests in MSR financing receivables for the quarter or six months ended June 30, 2025. |
(4) Includes a related-party, non-cash imputed compensation expense from the Palisades Acquisition of $341 and $341 for the quarters ended June 30, 2026 and 2025, respectively, and $682 and $682 for the six months ended June 30, 2026 and 2025, respectively. |
CHIMERA INVESTMENT CORPORATION | ||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
For the Quarters Ended | For the Six Months Ended | |||||||||||||||
June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |||||||||||||
Comprehensive income (loss): | ||||||||||||||||
Net income (loss) | $ | 17,369 | $ | 35,450 | $ | (26,541 | ) | $ | 202,747 | |||||||
Other comprehensive loss: | ||||||||||||||||
Unrealized gains (losses) on available-for-sale securities, net | ... |