CHIMERA INVESTMENT CORPORATION'S SECOND QUARTER EARNINGS MAINTAIN SUPPORT FOR $0.45 DIVIDEND

By Business Wire | August 05, 2026, 6:45 AM

NEW YORK--(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:

U.S. Toll Free: (866) 604-1613
International: (201) 689-7810
Webcast: https://www.chimerareit.com/news-events/ir-calendar

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		(8,753	)		(5,335	)		(20,451	)		(7,014	)
Reclassification adjustment for net realized losses (gains) included in net income for other-than-temporary credit impairment losses		—			—			3,140			—
Other comprehensive loss	$	(8,753	)	$	(5,335	)	$	(17,311	)	$	(7,014	)
Comprehensive income (loss) before preferred stock dividends	$	8,616		$	30,115		$	(43,852	)	$	195,733
Dividends on preferred stock	$	21,381		$	21,426		$	42,478		$	42,783
Comprehensive income (loss) available to common stock shareholders	$	(12,765	)	$	8,689		$	(86,330	)	$	152,950

Earnings available for distribution

Earnings available for distribution (“EAD”) is a non-GAAP measure and is defined as GAAP net income (loss) excluding: (i) Net unrealized gains (losses) on financial instruments at fair value; (ii) Net realized gains (losses) on sales of investments; (iii) Gains (losses) on extinguishment of debt; (iv) Increase in provision for credit losses; (v) Net unrealized gains (losses) on derivatives; (vi) Realized gains (losses) on derivatives; (vii) Transaction expenses; (viii) stock compensation expenses for retirement eligible awards; (ix) Depreciation, amortization, and impairment of intangible assets, net of any tax impact; (x) non-cash imputed compensation expense related to business acquisitions; and (xi) Other investment gains (losses).

Non-cash imputed compensation expense reflects the portion of the consideration paid in the Palisades Acquisition that pursuant to the sellers’ contractual arrangements is distributable to the sellers’ legacy employees (who are now our employees) and that for GAAP purposes is recorded as non-cash imputed compensation expense with an offsetting entry recorded as a non-cash contribution from a related party to stockholders’ equity. The excluded amounts do not include any normal, recurring compensation paid to our employees.

Transaction expenses are primarily comprised of costs only incurred at the time of execution of our securitizations, certain structured secured financing agreements, and business combination transactions, and include costs such as underwriting fees, legal fees, diligence fees, accounting fees, bank fees, and other similar transaction-related expenses. These costs are incurred prior to or at the execution of the transaction and do not recur thereafter. Recurring expenses, such as servicing fees, custodial fees, trustee fees, and other similar ongoing fees, are not excluded from EAD. We believe that excluding these costs is useful to investors because it is generally consistent with the treatment applied by our peer group in their non-GAAP measure presentations, mitigates period to period comparability issues tied to the timing of securitization and structured finance transactions, and is consistent with the accounting for the deferral of debt issuance costs prior to the fair value election option made by us. We also believe it is important for investors to review EAD as it is consistent with how management internally evaluates the performance of the Company. Stock compensation expense charges incurred on awards to retirement eligible employees is reflected as an expense over a vesting period (generally 36 months) rather than reported as an immediate expense.

We may hold long and/or short positions in TBA securities through transactions commonly referred to as “dollar roll” transactions. Under U.S. GAAP, these transactions are accounted for as derivatives and are carried at fair value. Changes in the fair value of TBA positions consist of two components: (i) drop income (expense) and (ii) mark-to-market adjustments. For financial statement presentation purposes, drop income (expense) is reported within Periodic interest on derivatives, net, while mark-to-market adjustments are reported within Net unrealized gains (losses) on derivatives. Together with any realized gains and losses, these amounts are included in Net gains (losses) on derivatives in our Consolidated Statements of Operations. Management includes drop income (expense) in EAD because it views drop income (expense) as the economic equivalent of net interest income on the underlying Agency securities, reflecting the difference between the implied interest earned and the implied financing cost over the period from trade date to settlement date. This treatment is consistent with how management evaluates the Company’s investment performance and how we believe our investors analyze our investment performance.

We view EAD as one measure of our investment portfolio's ability to generate income for distribution to common stockholders. EAD is one of the metrics, but not the exclusive metric, that our Board of Directors considers when determining the amount, if any, of dividends on our common stock. Other metrics that our Board of Directors may consider when determining the amount, if any, of dividends on our common stock include, among others, REIT taxable income, dividend yield, book value, cash generated from the portfolio, reinvestment opportunities, and other cash needs. To maintain our qualification as a REIT, U.S. federal income tax law generally requires that we distribute at least 90% of our REIT taxable income (subject to certain adjustments) annually. EAD is different from REIT taxable income. For example, differences between EAD and REIT taxable income may result from whether the REIT uses mark-to-market accounting for GAAP purposes, accretion of market discount or OID and amortization of premium, and differences in the treatment of securitizations for GAAP and tax purposes, among other items. Further, REIT taxable income generally does not include earnings of our domestic taxable REIT subsidiaries (“TRSs”) unless such income is distributed from current or accumulated earnings and profits. The determination of whether we have met the requirement to distribute at least 90% of our annual REIT taxable income is not based on EAD, and EAD should not be considered as an indication of our REIT taxable income, a guarantee of our ability to pay dividends, or a proxy for the amount of dividends we may pay. We believe EAD helps us and investors evaluate our financial performance period over period without the impact of certain non-recurring transactions. EAD should not be viewed in isolation and is not a substitute for, or superior to, net income (loss) or net income (loss) per basic share computed in accordance with GAAP. In addition, our methodology for calculating EAD may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and accordingly, our EAD may not be comparable to the EAD reported by other REITs.

The following table provides GAAP measures of net income and net income per diluted share available to common stockholders for the periods presented and details with respect to reconciling the line items to Earnings available for distribution and related per average diluted common share amounts. Earnings available for distribution is presented on an adjusted dilutive shares basis.

	For the Quarters Ended
	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
	(dollars in thousands, except per share data)
GAAP net income (loss) available to common stockholders	$	(4,012	)	$	(65,007	)	$	6,501		$	(21,997	)	$	14,024
Adjustments ⁽¹⁾:
Net unrealized (gains) losses on financial instruments at fair value		43,386			37,536			17,138			36,995			(6,971	)
Net realized (gains) losses on sales of investments		9,623			40,428			23,268			(1,991	)		1,915
Gain (loss) on extinguishment of debt		2,748			38,858			(20	)		—			—
Increase in provision for credit losses		7,192			2,824			5,322			2,587			4,409
Net unrealized (gains) losses on derivatives		(15,398	)		(18,150	)		(27,303	)		7,907			2,554
Realized (gains) losses on derivatives		(9,527	)		(2,870	)		17,495			(2,015	)		17,954
Transaction expenses		3,207			98			625			9,931			390
Stock Compensation expense for retirement eligible awards		(510	)		2,023			(449	)		(506	)		(501	)
Depreciation, amortization, and impairment expense⁽²⁾		4,076			9,649			4,332			948			949
HomeXpress acquisition intangible amortization tax impact ⁽³⁾		(850	)		(863	)		(837	)		—			—
Non-cash imputed compensation related to business acquisition		341			341			341			341			341
Other investment (gains) losses		(1,229	)		910			(1,252	)		(1,945	)		(2,953	)
Earnings available for distribution	$	39,047		$	45,777		$	45,161		$	30,255		$	32,111

GAAP net income (loss) per diluted common share	$	(0.05	)	$	(0.78	)	$	0.08		$	(0.27	)	$	0.17
Earnings available for distribution per adjusted diluted common share	$	0.46		$	0.54		$	0.53		$	0.37		$	0.39

(1) As a result of the business combinations, we updated the determination of earnings available for distribution to exclude non-recurring acquisition-related transaction expenses, non-cash amortization of intangibles and depreciation expenses, and non-cash imputed compensation expenses. These expenses are excluded as they relate to our business combinations and are not directly related to our income-generating activities.

(2) Non-cash amortization of intangibles and depreciation expenses related to acquisitions.

(3) Tax impact on non-cash amortization of intangibles and depreciation expenses related to business combinations.

At June 30, 2026, the Company’s reportable segments include (i) Investment Portfolio and (ii) Residential Origination. The Investment Portfolio segment consists of the Company’s investments and third-party advisory services activities. The Residential Origination segment consists of the stand-alone mortgage origination business of HomeXpress that originates Non-QM residential mortgage loans (both consumer loans and Investor Loans), and other Non-Agency and Agency mortgage loan products. The segment information presented below reflects the Company’s current reportable segment structure.

Segment Results of Operations

The following tables present, for each reportable segment, revenues, the measure of segment profit or loss, and significant segment expenses that are regularly reviewed by the Chief Operating Decision Maker (“CODM”). Segment results are prepared on the same basis as the Company’s consolidated financial statements and are reconciled to consolidated amounts below:

	For the Quarter Ended
	June 30, 2026									March 31, 2026
	(dollars in thousands)
	Investment Portfolio			Residential Origination			Total			Investment Portfolio			Residential Origination		Total
Net interest income:
Interest income	$	206,910		$	14,715		$	221,625		$	205,346		$	13,949	$	219,295
Interest expense		140,205			10,911			151,116			134,169			10,124		144,293
Net interest income		66,705			3,804			70,509			71,177			3,825		75,002

Increase in provision for credit losses		7,192			—			7,192			2,824			—		2,824

Other income (losses):
Net unrealized gains (losses) on derivatives		15,398			—			15,398			18,150			—		18,150
Realized gains (losses) on derivatives		9,527			—			9,527			2,870			—		2,870
Periodic interest on derivatives, net		2,061			—			2,061			1,834			—		1,834
Net gains (losses) on derivatives		26,986			—			26,986			22,854			—		22,854
Investment management and advisory fees		6,540			—			6,540			7,165			—		7,165
Interest income from investment in MSR financing receivables, net		838			—			838			2,311			—		2,311
Net unrealized gains (losses) on financial instruments at fair value		(43,386	)		—			(43,386	)		(37,536	)		—		(37,536	)
Net realized losses on sales of investments		(9,623	)		—			(9,623	)		(40,428	)		—		(40,428	)
Gains (losses) on extinguishment of debt		(2,748	)		—			(2,748	)		(38,858	)		—		(38,858	)
Other investment losses		1,229			—			1,229			(910	)		—		(910	)
Gain on origination and sale of loans, net		(68	)		22,278			22,210			—			21,385		21,385
Total other income (losses)		(20,232	)		22,278			2,046			(85,402	)		21,385		(64,017	)

Other expenses:
Compensation and benefits		13,223			11,879			25,102			15,066			11,640		26,706
General and administrative expenses		9,027			2,452			11,479			10,035			2,126		12,161
Servicing and asset manager fees		4,431			—			4,431			5,522			—		5,522
Depreciation, amortization, and impairment expense		644			3,432			4,076			6,222			3,427		9,649
Transaction expenses		3,207			—			3,207			98			—		98
Total other expenses		30,532			17,763			48,295			36,943			17,193		54,136

Income (loss) before income taxes		8,749			8,319			17,068			(53,991	)		8,017		(45,974	)
Income tax (benefit) expense		47			(348	)		(301	)		(2,106	)		42		(2,064	)
Net income (loss)		8,702			8,667			17,369			(51,885	)		7,975		(43,910	)

Dividends on preferred stock		21,381			—			21,381			21,097			—		21,097

Net income (loss) available to common shareholders	$	(12,679	)	$	8,667		$	(4,012	)	$	(72,982	)	$	7,975	$	(65,007	)

Contacts

Investor Relations
888-895-6557
investor-relations@chimerareit.com
www.chimerareit.com

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CIM

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Chimera Investment Corp

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