$CIM

CHIMERA INVESTMENT CORP

CIK:0001409493|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2026

Jun. 30, 2025

Jun. 30, 2026

Jun. 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

^[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 (in dollars per share)

$ (0.05)

$ 0.17

$ (0.82)

$ 1.97

Diluted (in dollars per share)

$ (0.05)

$ 0.17

$ (0.82)

$ 1.94

Weighted average number of common shares outstanding:

Basic (in shares)

83,813,331

81,408,087

83,739,672

81,386,680

Diluted (in shares)

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. See Note 10 for further discussion.
[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. See Note 10 for further discussion.
[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. See Note 10 for further discussion.
[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.

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash Flows From Operating Activities:
Net income (loss)	$ (26,541)	$ 202,747
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
(Accretion) Amortization of investment discounts/premiums, net	(17,079)	522
Accretion of deferred financing costs, debt issuance costs, and Securitized debt discounts/premiums, net	8,706	7,372
Net unrealized (gains) losses on derivatives	(33,548)	9,024
(Payments) proceeds for derivative settlements	2,476	0
Margin received (paid) on derivatives	46,753	(79,889)
Net unrealized (gains) losses on financial instruments at fair value	80,923	(135,866)
Net realized losses on sales of investments	50,051	1,915
Other investment (gains) losses	(320)	(2,536)
Net increase in provision for credit losses	10,016	7,796
Depreciation, amortization, and impairment of intangible assets	13,725	1,902
Gain on origination and sale of loans, net	(2,803)	0
(Gain) loss on extinguishment of debt	41,605	(2,122)
Equity-based compensation expense	5,679	5,886
Non-cash imputed compensation related to business acquisition	682	682
Direct loan origination costs, net	(2,278,604)	0
Sales, settlements and proceeds from sale of loans held-for-sale	2,045,952	0
Fair value adjustment on mortgage loans held-for-sale	1,298	0
Changes in operating assets:
Decrease in accrued interest receivable	2,276	6,775
(Decrease) increase in other assets	(65,540)	26,861
Changes in operating liabilities:
Increase (decrease) in accounts payable and other liabilities	19,802	(9,301)
Decrease in accrued interest payable	(1,411)	(398)
Net cash (used in) provided by operating activities	(95,902)	41,370
Cash Flows From Investing Activities:
Distributions received from interests in MSR financing receivables	7,544	0
Net cash (used in) investing activities	(1,655)	(1,378,159)
Cash Flows From Financing Activities:
Proceeds from secured financing agreements	34,138,967	21,680,562
Payments on secured financing agreements	(32,442,926)	(19,950,820)
Proceeds from securitized debt borrowings, collateralized by Loans held for investment	378,755	780,166
Payments on securitized debt borrowings, collateralized by Loans held for investment	(1,697,863)	(903,304)
Payments on securitized debt borrowings, collateralized by Non-Agency RMBS	(2)	(15)
Common dividends paid	(70,017)	(60,792)
Preferred dividends paid	(42,478)	(42,783)
Net cash provided by (used in) financing activities	264,436	1,503,014
Net increase in cash, cash equivalents and restricted cash	166,879	166,225
Cash, cash equivalents and restricted cash at beginning of period	284,465	83,998
Cash, cash equivalents and restricted cash at end of period	451,344	250,223
Supplemental disclosure of cash flow information:
Interest received	426,117	399,211
Interest paid	288,114	250,007
Change in fair value of contingent earn-out liability	4,340	0
Non-cash investing activities:
Payable for investments purchased	0	387,909
Net change in unrealized gain (loss) on available-for-sale securities	(17,311)	(7,014)
Non-cash financing activities:
Dividends declared, not yet paid	41,973	34,650
Agency MBS portfolio
Cash Flows From Investing Activities:
Purchases	(2,324,339)	(1,921,957)
Sales	138,839	127,677
Principal payments	343,323	42,859
Non-agency RMBS Portfolio
Cash Flows From Investing Activities:
Purchases	0	0
Sales	13,491	12,234
Principal payments	50,798	53,256
Loans held for investment
Cash Flows From Investing Activities:
Sales	1,657,190	0
Principal payments	580,881	744,254
Purchases	$ (469,382)	$ (436,482)

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($)
$ in Thousands

Jun. 30, 2026

Dec. 31, 2025

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

Commitments and Contingencies (See Note 18)

Stockholders’ Equity:

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

Series A Preferred Stock

Stockholders’ Equity:

Preferred Stock, par value of $0.01 per share, 100,000,000 shares authorized:

Series B Preferred Stock

Stockholders’ Equity:

Preferred Stock, par value of $0.01 per share, 100,000,000 shares authorized:

130

Series C Preferred Stock

Stockholders’ Equity:

Preferred Stock, par value of $0.01 per share, 100,000,000 shares authorized:

104

Series D Preferred Stock

Stockholders’ Equity:

Preferred Stock, par value of $0.01 per share, 100,000,000 shares authorized:

$ 80

[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. See Note 10 for further discussion.