CHIMERA INVESTMENT CORPORATION REPORTS THIRD QUARTER 2026 RESULTS

By Business Wire | November 05, 2026, 5:45 AM

NEW YORK--(BUSINESS WIRE)--Chimera Investment Corporation (NYSE: CIM) today announced its financial results for the third quarter ended September 30, 2026.

Executive Summary:

Metric	Value
GAAP Net income (loss) available to common shareholders	$(194) million, or $(2.31) per diluted common share
Earnings available for distribution ⁽¹⁾	$32 million, or $0.38 per adjusted diluted common share
GAAP Book Value per common share	$14.82 per common share
Economic Return ⁽²⁾	(13.98)%

(1) Earnings available for distribution per adjusted diluted common share is a non-GAAP measure. See additional discussion on page 6-7.
(2) Our economic return is measured by the change in GAAP book value per common share plus common stock dividend.

Business Highlights:

Significant movements in interest rates and mortgage spreads impacted book value.
Maintained a strong liquidity position amid heightened market volatility.

Investment Portfolio Segment

Repositioned the Agency RMBS portfolio toward higher coupon securities to take advantage of more attractive yields; approximately 90% of our specified pools now have coupons of 5% or higher.
Committed to purchase $797 million of loans to support our securitization program during the quarter, bringing year to date purchases to $1.1 billion.
Subsequent to quarter end, completed the inaugural $291 million Prism securitization backed by loans originated by HomeXpress.

Residential Origination Segment

Originated volume of $1.1 billion, up 27% vs prior year period³, reflecting disciplined approach to pricing amid volatile market conditions.
Reported a net loss of $(2) million, and $439 thousand of EBTDA
Product mix shifted, with consumer Non-QM representing 42%, Investor Loans 55%, and QM at 3%. Expanded correspondent channel to account for 17% of production in the quarter.

“The third quarter presented a challenging market environment, with significant credit spread widening and interest rate volatility putting pressure on our book value. Despite these headwinds, we are executing on our strategic priorities, most recently with the successful launch of Prism. Our focus is on disciplined capital allocation, maintaining strong liquidity and leveraging our expanded platform to drive long term shareholder value,” said Phillip J. Kardis II, President and CEO.

Third 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 Thursday, November 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.

³	Reflects HomeXpress standalone results. HomeXpress was acquired on October 1, 2025 and is not included in Chimera’s consolidated results prior to that date.

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)
	September 30, 2026			December 31, 2025
Assets:
Cash and cash equivalents	$	357,179		$	278,582
Non-Agency RMBS, at fair value (net of allowance for credit losses of $60 million and $43 million, respectively)		673,683			817,280
Agency MBS, at fair value		5,545,002			3,463,485
Loans held for investment, at fair value		7,405,464			9,803,615
Loans held-for-sale, at fair value		1,986,814			896,117
Accrued interest receivable		85,283			78,691
Other assets		493,316			408,291
Interests in MSR financing receivables		41,256			37,294
Derivatives, at fair value, net		121,209			25,187
Total assets ⁽¹⁾	$	16,709,206		$	15,808,542
Liabilities:
Secured financing agreements ($9.7 billion and $7.4 billion pledged as collateral, respectively, and includes $267 million and $299 million at fair value, respectively)	$	8,619,936		$	6,031,182
Securitized debt, collateralized by Non-Agency RMBS ($185 million and $210 million pledged as collateral, respectively)		62,329			66,579
Securitized debt at fair value, collateralized by Loans held for investment ($7.1 billion and $9.4 billion pledged as collateral, respectively)		5,077,677			6,721,302
Long term debt		253,063			251,528
Payable for investments purchased		343,161			3,267
Accrued interest payable		40,658			43,032
Dividends payable		43,080			34,891
Accounts payable and other liabilities		97,663			82,308
Derivatives, at fair value, net		1,318			1,759
Total liabilities ⁽¹⁾	$	14,538,885		$	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, 83,711,818 and 83,402,145 shares issued and outstanding, respectively		837			834
Additional paid-in-capital		4,438,590			4,429,009
Accumulated other comprehensive income		112,845			146,295
Cumulative earnings		4,372,838			4,571,610
Cumulative distributions to stockholders		(6,755,161	)		(6,575,426	)
Total stockholders’ equity	$	2,170,321		$	2,572,694
Total liabilities and stockholders’ equity	$	16,709,206		$	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 September 30, 2026, and December 31, 2025, total assets of consolidated VIEs were $7,046,471 and $9,215,343, respectively, and total liabilities of consolidated VIEs were $4,981,153 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 Nine Months Ended
	September 30, 2026			September 30, 2025			September 30, 2026			September 30, 2025
Net Interest Income:
Interest income ⁽¹⁾	$	230,687		$	209,100		$	671,607		$	601,014
Interest expense ⁽²⁾		159,504			144,089			454,912			400,773
Net interest income		71,183			65,011			216,695			200,241

Increase in provision for credit losses		6,847			2,587			16,863			10,383

Other income (losses):
Net unrealized gains (losses) on derivatives		127,224			(7,907	)		160,772			(16,932	)
Realized gains (losses) on derivatives		74,901			2,015			87,298			(15,857	)
Periodic interest on derivatives, net		5,639			5,751			9,534			14,953
Net gains (losses) on derivatives		207,764			(141	)		257,604			(17,836	)
Investment management and advisory fees		7,978			8,509			21,682			26,254
Interest income from investment in MSR financing receivables, net ⁽³⁾		777			500			3,927			500
Net unrealized gains (losses) on financial instruments at fair value		(391,000	)		(36,995	)		(471,922	)		98,872
Net realized gains (losses) on sales of investments		(26,889	)		1,991			(76,941	)		76
Gains (losses) on extinguishment of debt		—			—			(41,605	)		2,122
Other investment gains (losses)		1,063			1,945			1,382			4,481
Gain on origination and sale of loans, net		11,128			—			54,723			—
Total other income (losses)		(189,179	)		(24,191	)		(251,150	)		114,469

Other expenses:
Compensation and benefits ⁽⁴⁾		23,875			13,756			75,683			38,501
General and administrative expenses		12,174			6,936			35,814			20,658
Servicing and asset manager fees		6,164			6,991			16,117			21,726
Depreciation, amortization, and impairment of intangible assets		5,479			948			19,203			2,850
Transaction expenses		—			9,931			3,305			16,009
Total other expenses		47,692			38,562			150,122			99,744
Income (loss) before income taxes		(172,535	)		(329	)		(201,440	)		204,583
Income tax expense (benefit)		(306	)		251			(2,671	)		2,416
Net income (loss)	$	(172,229	)	$	(580	)	$	(198,769	)	$	202,167

Dividends on preferred stock	$	21,433		$	21,417		$	63,910		$	64,200

Net income (loss) available to common shareholders	$	(193,662	)	$	(21,997	)	$	(262,679	)	$	137,967

Net income (loss) per share available to common shareholders:
Basic	$	(2.31	)	$	(0.27	)	$	(3.14	)	$	1.69
Diluted	$	(2.31	)	$	(0.27	)	$	(3.14	)	$	1.67

Weighted average number of common shares outstanding:
Basic		83,870,874			81,507,492			83,787,100			81,435,782
Diluted		83,870,874			81,507,492			83,787,100			82,696,006

(1) Includes interest income of consolidated VIEs of $104,642 and $137,597 for the quarters ended September 30, 2026 and 2025 respectively, and $339,901 and $423,817 for the nine months ended September 30, 2026 and 2025, respectively.
(2) Includes interest expense of consolidated VIEs of $55,287 and $70,387 for the quarters ended September 30, 2026 and 2025 respectively, and $173,765 and $213,076 for the nine months ended September 30, 2026 and 2025, respectively.
(3) Includes interest income from investment in MSR financing receivables of a consolidated VIE of $312 and $363 for the quarter ended September 30, 2026 and 2025, respectively, and $2,162 and $363 for the nine months ended September 30, 2026 and 2025.
(4) Includes a related-party, non-cash imputed compensation expense from the Palisades Acquisition of $302 and $341 for the quarters ended September 30, 2026 and 2025, respectively, and $984 and $1,023 for the nine months ended September 30, 2026 and 2025, respectively.

CHIMERA INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(dollars in thousands)
(Unaudited)

	For the Quarters Ended						For the Nine Months Ended
	September 30, 2026			September 30, 2025			September 30, 2026			September 30, 2025
Comprehensive income (loss):
Net income (loss)	$	(172,229	)	$	(580	)	$	(198,769	)	$	202,167
Other comprehensive loss:
Unrealized gains (losses) on available-for-sale securities, net		(16,139	)		(5,059	)		(36,590	)		(12,073	)
Reclassification adjustment for net realized losses (gains) included in net income for other-than-temporary credit impairment losses		—			2,056			3,140			2,056
Other comprehensive loss	$	(16,139	)	$	(3,003	)	$	(33,450	)	$	(10,017	)
Comprehensive income (loss) before preferred stock dividends	$	(188,368	)	$	(3,583	)	$	(232,219	)	$	192,150
Dividends on preferred stock	$	21,433		$	21,417		$	63,910		$	64,200
Comprehensive income (loss) available to common stock shareholders	$	(209,801	)	$	(25,000	)	$	(296,129	)	$	127,950

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
	September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025
	(dollars in thousands, except per share data)
GAAP net income (loss) available to common stockholders	$	(193,662	)	$	(4,012	)	$	(65,007	)	$	6,501		$	(21,997	)
Adjustments ⁽¹⁾:
Net unrealized (gains) losses on financial instruments at fair value		391,000			43,386			37,536			17,138			36,995
Net realized (gains) losses on sales of investments		26,889			9,623			40,428			23,268			(1,991	)
Gain (loss) on extinguishment of debt		—			2,748			38,858			(20	)		—
Increase in provision for credit losses		6,847			7,192			2,824			5,322			2,587
Net unrealized (gains) losses on derivatives		(127,224	)		(15,398	)		(18,150	)		(27,303	)		7,907
Realized (gains) losses on derivatives		(74,901	)		(9,527	)		(2,870	)		17,495			(2,015	)
Transaction expenses		—			3,207			98			625			9,931
Stock Compensation expense for retirement eligible awards		(515	)		(510	)		2,023			(449	)		(506	)
Depreciation, amortization, and impairment expense⁽²⁾		5,479			4,076			9,649			4,332			948
HomeXpress acquisition intangible amortization tax impact ⁽³⁾		(850	)		(850	)		(863	)		(837	)		—
Non-cash imputed compensation related to business acquisition		302			341			341			341			341
Other investment (gains) losses		(1,063	)		(1,229	)		910			(1,252	)		(1,945	)
Earnings available for distribution	$	32,302		$	39,047		$	45,777		$	45,161		$	30,255

GAAP net income (loss) per diluted common share	$	(2.31	)	$	(0.05	)	$	(0.78	)	$	0.08		$	(0.27	)
Earnings available for distribution per adjusted diluted common share	$	0.38		$	0.46		$	0.54		$	0.53		$	0.37

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

At September 30, 2026, the Company’s reportable segments include (i) Investment Portfolio and (ii) Residential Origination. The Investment Portfolio segment consists of our investment and third-party advisory services activities, as well as the purchase and aggregation of LHFS from HomeXpress and third-party mortgage originators for future securitizations. 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 Quarters Ended
	September 30, 2026									June 30, 2026
	(dollars in thousands)
	Investment Portfolio			Residential Origination			Total			Investment Portfolio			Residential Origination			Total
Net interest income:
Interest income	$	214,131		$	16,556		$	230,687		$	206,910		$	14,715		$	221,625
Interest expense		147,630			11,874			159,504			140,205			10,911			151,116
Net interest income		66,501			4,682			71,183			66,705			3,804			70,509

Increase in provision for credit losses		6,847			—			6,847			7,192			—			7,192

Other income (losses):
Net unrealized gains (losses) on derivatives		127,224			—			127,224			15,398			—			15,398
Realized gains (losses) on derivatives		74,901			—			74,901			9,527			—			9,527
Periodic interest on derivatives, net		5,639			—			5,639			2,061			—			2,061
Net gains (losses) on derivatives		207,764			—			207,764			26,986			—			26,986
Investment management and advisory fees		7,978			—			7,978			6,540			—			6,540
Interest income from investment in MSR financing receivables, net		777			—			777			838			—			838
Net unrealized gains (losses) on financial instruments at fair value		(391,000	)		—			(391,000	)		(43,386	)		—			(43,386	)
Net realized losses on sales of investments		(26,889	)		—			(26,889	)		(9,623	)		—			(9,623	)
Gains (losses) on extinguishment of debt		—			—			—			(2,748	)		—			(2,748	)
Other investment gains (losses)		1,063			—			1,063			1,229			—			1,229
Gain on origination and sale of loans, net		176			10,952			11,128			(68	)		22,278			22,210
Total other income (losses)		(200,131	)		10,952			(189,179	)		(20,232	)		22,278			2,046

Other expenses:
Compensation and benefits		11,402			12,473			23,875			13,223			11,879			25,102
General and administrative expenses		9,452			2,722			12,174			9,027			2,452			11,479
Servicing and asset manager fees		6,164			—			6,164			4,431			—			4,431
Depreciation, amortization, and impairment expense		2,048			3,431			5,479			644			3,432			4,076
Transaction expenses		—			—			—			3,207			—			3,207
Total other expenses		29,066			18,626			47,692			30,532			17,763			48,295

Income (loss) before income taxes		(169,543	)		(2,992	)		(172,535	)		8,749			8,319			17,068
Income tax (benefit) expense		254			(560	)		(306	)		47			(348	)		(301	)
Net income (loss)		(169,797	)		(2,432	)		(172,229	)		8,702			8,667			17,369

Dividends on preferred stock		21,433			—			21,433			21,381			—			21,381

Net income (loss) available to common shareholders	$	(191,230	)	$	(2,432	)	$	(193,662	)	$	(12,679	)	$	8,667		$	(4,012	)

Contacts

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

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CHIMERA INVESTMENT CORPORATION REPORTS THIRD QUARTER 2026 RESULTS

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