Chimera Investment CorporationNYSE: CIM

Chimera Investment Corporation's second quarter earnings maintain support for $0.45 dividend

· Issued by Chimera Investment Corporation via Business Wire

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."

____________________

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:

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

...

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