Chimera Investment Corporation New (CIM)

Chimera Declares $0.45 Per Share Second Quarter 2026 Common Stock DividendJune 11, 2026 4:10 PM
Business Wire Dividend Maintained at $0.45 Per Share, Reflecting an Annualized Rate of $1.80 Per Share The Board of Directors of Chimera Investment Corporation (“Chimera”) has declared its second quarter cash dividend of $0.45 per common share, consistent with the first quarter 2026 dividend and in line with the Board’s previously stated expectation to maintain the $0.45 quarterly dividend throughout 2026. The dividend is payable on July 31, 2026 to common shareholders of record on June 30, 2026. The ex-dividend date is June 30, 2026. About Chimera Investment Corporation Chimera is a diversified real estate company that invests in, originates, and manages primarily residential real estate assets. The assets we may invest in for ourselves and manage for others through our wholly-owned subsidiary Palisades Advisory Services, LLC, include residential mortgage loans, Non-Agency RMBS, Agency RMBS, RTLs, Investor Loans, MSRs and other real estate-related assets such as Agency CMBS, junior liens and HELOCs, equity appreciation rights, and reverse mortgages. Also, through our wholly-owned subsidiary, HomeXpress Mortgage Corp., we primarily originate non-QM residential mortgage loans (both consumer loans and Investor Loans) as well as a smaller amount of QM residential mortgage loans. Chimera was incorporated in Maryland on June 1, 2007 and started trading on the NYSE in November 2007, and is structured as an internally managed real estate investment trust, or REIT, for U.S. federal income tax purposes. Forward-Looking Statements In this press release references to “we,” “us,” “our,” “Chimera,” or “the Company” refer to Chimera Investment Corporation and its subsidiaries unless specifically stated otherwise or the context otherwise indicates. This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, including as related to the expected impact. Actual results may differ from expectations, estimates and projections and, consequently, readers should not rely on these forward-looking statements as predictions of future events. Words such as “goal,” “expect,” “target,” “assume,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “would,” “will,” “could,” “should,” “believe,” “predict,” “potential,” “continue,” or similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results, including, among other things, those described in our most recent Annual Report on Form 10-K, and any subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, under the caption “Risk Factors.” Factors that could cause actual results to differ include, but are not limited to: our ability to obtain funding on favorable terms and access the capital markets; our ability to achieve optimal levels of leverage and effectively manage our liquidity; changes in inflation, the yield curve, interest rates and mortgage prepayment rates; our ability to manage credit risk related to our investments and comply with the Dodd-Frank Act and related laws and regulations relating to credit risk retention for securitizations; rates of default, delinquencies, forbearance, deferred payments or decreased recovery rates on our investments; the concentration of properties securing our securities and residential loans in a small number of geographic areas; our ability to execute on our business and investment strategy; our ability to determine accurately the fair market value of our assets; changes in our industry, the general economy or geopolitical conditions, including the ongoing conflicts involving the U.S. in the Middle East; our ability to successfully integrate and realize the anticipated benefits of any acquisitions, including the acquisition of HomeXpress; our ability to originate or acquire quality and profitable loans at an appropriate and consistent cost; our ability to sell the loans that we originate or acquire; our ability to refinance or obtain additional liquidity for borrowing; our ability to manage, maintain and expand our relationships with our clients, the independent mortgage brokers and bankers; our ability to operate our investment management and advisory services and manage any regulatory rules and conflicts of interest; the degree to which our hedging strategies may or may not be effective; our ability to effect our strategy to securitize residential mortgage loans; our ability to compete with competitors and source target assets at attractive prices; the ability of servicers and other third parties to perform their services at a high level and comply with applicable law and expanding regulations; our dependence on information technology and its susceptibility to cyber-attacks; the development, proliferation and use of artificial intelligence; our ability to find and retain qualified executive officers and key personnel; our ability to comply with extensive government regulation, including, but not limited to, federal and state consumer lending regulations; the impact of and changes in governmental regulations, tax law and rates, accounting guidance, refinancing and borrowing guidelines and similar matters; our ability to maintain our exemption from registration under the Investment Company Act of 1940, as amended; our ability to maintain our classification as a real estate investment trust for U.S. federal income tax purposes; the volatility of the market price and trading volume of our shares; and our ability to make distributions to our stockholders in the future. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Chimera does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statement to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Additional information concerning these and other risk factors is contained in Chimera’s most recent filings with the Securities and Exchange Commission (SEC). All subsequent written and oral forward-looking statements concerning Chimera or matters attributable to Chimera or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. Readers are advised that any financial information in this press release is based on Company data available at the time of this press release and, in certain circumstances, may not have been audited by Chimera’s independent auditors. View source version on businesswire.com: https://www.businesswire.com/news/home/20260611556404/en/ Investor Relations
888-895-6557
investor-relations@chimerareit.com
www.chimerareit.com Original: Chimera Declares $0.45 Per Share Second Quarter 2026 Common Stock Dividend

Chimera Declares Second Quarter 2026 Preferred Stock DividendsMay 7, 2026 6:45 AM
Business Wire BOARD DECLARES SECOND QUARTER 2026 DIVIDEND OF $0.50 PER SHARE OF 8.00% SERIES A CUMULATIVE REDEEMABLE PREFERRED STOCK BOARD DECLARES SECOND QUARTER 2026 DIVIDEND OF $0.6095 PER SHARE OF 8.00% SERIES B FIXED-TO-FLOATING RATE CUMULATIVE REDEEMABLE PREFERRED STOCK BOARD DECLARES SECOND QUARTER 2026 DIVIDEND OF $0.5561 PER SHARE OF 7.75% SERIES C FIXED-TO-FLOATING RATE CUMULATIVE REDEEMABLE PREFERRED STOCK BOARD DECLARES SECOND QUARTER 2026 DIVIDEND OF $0.5967 PER SHARE OF 8.00% SERIES D FIXED-TO-FLOATING RATE CUMULATIVE REDEEMABLE PREFERRED STOCK The Board of Directors of Chimera Investment Corporation (“Chimera”) announced the declaration of its second quarter cash dividend of $0.50 per share of 8.00% Series A Cumulative Redeemable Preferred Stock. The dividend is payable June 30, 2026 to preferred shareholders of record on June 1, 2026. The ex-dividend date is June 1, 2026. The Board of Directors of Chimera also announced the declaration of its second quarter cash dividend of $0.6095 per share of 8.00% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, which reflects a rate of 9.75222% equal to three-month CME Term SOFR (plus a spread adjustment of 0.26161%) on the dividend determination date plus a spread of 5.791%. The dividend is payable June 30, 2026 to preferred shareholders of record on June 1, 2026. The ex-dividend date is June 1, 2026. The Board of Directors of Chimera also announced the declaration of its second quarter cash dividend of $0.5561 per share of 7.75% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, which reflects a rate of 8.70422%, equal to three-month CME Term SOFR (plus a spread adjustment of 0.26161%) on the dividend determination date plus a spread of 4.743%. The dividend is payable June 30, 2026 to preferred shareholders of record on June 1, 2026. The ex-dividend date is June 1, 2026. The Board of Directors of Chimera also announced the declaration of its second quarter cash dividend of $0.5967 per share of 8.00% Series D Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, which reflects a rate of 9.34022%, equal to three-month CME Term SOFR (plus a spread adjustment of 0.26161%) on the dividend determination date plus a spread of 5.379%. The dividend is payable June 30, 2026 to preferred shareholders of record on June 1, 2026. The ex-dividend date is June 1, 2026. About Chimera Investment Corporation Chimera is a diversified real estate company that invests in, originates, and manages primarily residential real estate assets. The assets we may invest in for ourselves and manage for others through our wholly-owned subsidiary Palisades Advisory Services, LLC, include residential mortgage loans, Non-Agency RMBS, Agency RMBS, RTLs, Investor Loans, MSRs and other real estate-related assets such as Agency CMBS, junior liens and HELOCs, equity appreciation rights, and reverse mortgages. Also, through our wholly-owned subsidiary, HomeXpress Mortgage Corp., we primarily originate non-QM residential mortgage loans (both consumer loans and Investor Loans) as well as a smaller amount of QM residential mortgage loans. Chimera was incorporated in Maryland on June 1, 2007 and started trading on the NYSE in November 2007, and is structured as an internally managed real estate investment trust, or REIT, for U.S. federal income tax purposes. Forward-Looking Statements In this press release references to “we,” “us,” “our,” “Chimera,” or “the Company” refer to Chimera Investment Corporation and its subsidiaries unless specifically stated otherwise or the context otherwise indicates. This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, including as related to the expected impact. Actual results may differ from expectations, estimates and projections and, consequently, readers should not rely on these forward-looking statements as predictions of future events. Words such as “goal,” “expect,” “target,” “assume,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “would,” “will,” “could,” “should,” “believe,” “predict,” “potential,” “continue,” or similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results, including, among other things, those described in our most recent Annual Report on Form 10-K, and any subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, under the caption “Risk Factors.” Factors that could cause actual results to differ include, but are not limited to: our ability to obtain funding on favorable terms and access the capital markets; our ability to achieve optimal levels of leverage and effectively manage our liquidity; changes in inflation, the yield curve, interest rates and mortgage prepayment rates; our ability to manage credit risk related to our investments and comply with the Dodd-Frank Act and related laws and regulations relating to credit risk retention for securitizations; rates of default, delinquencies, forbearance, deferred payments or decreased recovery rates on our investments; the concentration of properties securing our securities and residential loans in a small number of geographic areas; our ability to execute on our business and investment strategy; our ability to determine accurately the fair market value of our assets; changes in our industry, the general economy or geopolitical conditions, including the ongoing conflicts involving the U.S. in the Middle East; our ability to successfully integrate and realize the anticipated benefits of any acquisitions, including the acquisition of HomeXpress; our ability to originate or acquire quality and profitable loans at an appropriate and consistent cost; our ability to sell the loans that we originate or acquire; our ability to refinance or obtain additional liquidity for borrowing; our ability to manage, maintain and expand our relationships with our clients, the independent mortgage brokers and bankers; our ability to operate our investment management and advisory services and manage any regulatory rules and conflicts of interest; the degree to which our hedging strategies may or may not be effective; our ability to effect our strategy to securitize residential mortgage loans; our ability to compete with competitors and source target assets at attractive prices; the ability of servicers and other third parties to perform their services at a high level and comply with applicable law and expanding regulations; our dependence on information technology and its susceptibility to cyber-attacks; the development, proliferation and use of artificial intelligence; our ability to find and retain qualified executive officers and key personnel; our ability to comply with extensive government regulation, including, but not limited to, federal and state consumer lending regulations; the impact of and changes in governmental regulations, tax law and rates, accounting guidance, refinancing and borrowing guidelines and similar matters; our ability to maintain our exemption from registration under the Investment Company Act of 1940, as amended; our ability to maintain our classification as a real estate investment trust for U.S. federal income tax purposes; the volatility of the market price and trading volume of our shares; and our ability to make distributions to our stockholders in the future. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Chimera does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statement to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Additional information concerning these and other risk factors is contained in Chimera’s most recent filings with the Securities and Exchange Commission (SEC). All subsequent written and oral forward-looking statements concerning Chimera or matters attributable to Chimera or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. Readers are advised that any financial information in this press release is based on Company data available at the time of this press release and, in certain circumstances, may not have been audited by Chimera’s independent auditors. View source version on businesswire.com: https://www.businesswire.com/news/home/20260506524987/en/ Investor Relations
888-895-6557
investor-relations@chimerareit.com
www.chimerareit.com Original: Chimera Declares Second Quarter 2026 Preferred Stock Dividends

CHIMERA INVESTMENT CORPORATION EARNINGS SUPPORTS $0.45 DIVIDEND IN VOLATILE MARKETSMay 7, 2026 6:45 AM
Business Wire Chimera Investment Corporation (NYSE: CIM) today announced its financial results for the first quarter ended March 31, 2026. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260507696662/en/ Executive Summary: Metric Value Q1 2026 GAAP Net Income (Loss) $(65) million, or $(0.78) per diluted common share Earnings Available for Distribution (1) $46 million, or $0.54 per diluted common share GAAP Book Value per common share $18.34 per common share Economic Return (2) (4.6)%     (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: Generated strong Earnings Available for Distribution from both Investment Portfolio and Residential Origination segments. Portfolio optimization, designed to enhance earnings power, accounted for nearly two-thirds of the change in book value. Investment Portfolio Segment Redeemed 8 securitizations collateralized by $1.5 billion of seasoned reperforming loans. Sold $1.2 billion of seasoned reperforming loans. Retained $287 million in our Loans Held for Investment. Redeployed $195 million of capital into Agency RMBS. Committed to purchase $187 million of newly originated loans from HomeXpress to launch a securitization program. Residential Origination Segment Originated volume of $884 million, up 39% vs prior year period1 demonstrating platform scale and capacity. $11 million of EBTDA representing an annualized EBTDA ROE of 16.8%. Product mix remained stable with consumer Non-QM representing 39%, Investor Loans 57%, and QM at 4%. “We generated solid earnings across the business and fully covered our dividend, despite the volatile environment,” said Phillip J. Kardis II, President and CEO. “We continued to reposition the portfolio toward higher-return opportunities. With flexibility in the business platform and balance sheet, along with our origination pipeline, we are well-positioned as we move through 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. First 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, May 7, 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: 13759190 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 is a diversified real estate company that invests in, originates, and manages primarily residential real estate assets. The assets we may invest in for ourselves and manage for others through our wholly-owned subsidiary Palisades Advisory Services, LLC, include residential mortgage loans, Non-Agency RMBS, Agency RMBS, RTLs, Investor Loans, MSRs and other real estate-related assets such as Agency CMBS, junior liens and HELOCs, equity appreciation rights, and reverse mortgages. Also, through our wholly-owned subsidiary, HomeXpress Mortgage Corp., we primarily originate non-QM residential mortgage loans (both consumer loans and Investor Loans) as well as a smaller amount of QM residential mortgage loans. Chimera was incorporated in Maryland on June 1, 2007 and started trading on the NYSE in November 2007, and is structured as an internally managed real estate investment trust, or REIT, for U.S. federal income tax purposes. CHIMERA INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (dollars in thousands, except share and per share data)   (Unaudited)     March 31, 2026 December 31, 2025 Assets:     Cash and cash equivalents $ 476,218   $ 278,582   Non-Agency RMBS, at fair value (net of allowance for credit losses of $46 million and $43 million, respectively)   756,055     817,280   Agency MBS, at fair value   5,228,464     3,463,485   Loans held for investment, at fair value   8,227,800     9,803,615   Loans held-for-sale, at fair value   700,597     896,117   Accrued interest receivable   76,362     78,691   Other assets   438,624     408,291   Interests in MSR financing receivables   39,773     37,294   Derivatives, at fair value, net   35,486     25,187   Total assets (1) $ 15,979,379   $ 15,808,542   Liabilities:     Secured financing agreements ($8.2 billion and $7.4 billion pledged as collateral, respectively, and includes $292 million and $299 million at fair value, respectively) $ 6,987,171   $ 6,031,182   Securitized debt, collateralized by Non-Agency RMBS ($203 million and $210 million pledged as collateral, respectively)   65,035     66,579   Securitized debt at fair value, collateralized by Loans held for investment ($7.6 billion and $9.4 billion pledged as collateral, respectively)   5,430,192     6,721,302   Long term debt   252,040     251,528   Payable for investments purchased   611,501     3,267   Accrued interest payable   36,618     43,032   Dividends payable   40,974     34,891   Accounts payable and other liabilities   92,089     82,308   Derivatives, at fair value, net   —     1,759   Total liabilities (1) $ 13,515,620   $ 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, 83,645,571 and 83,402,145 shares issued and outstanding, respectively   836     834   Additional paid-in-capital   4,432,076     4,429,009   Accumulated other comprehensive income   137,737     146,295   Cumulative earnings   4,527,700     4,571,610   Cumulative distributions to stockholders   (6,634,962 )   (6,575,426 ) Total stockholders’ equity $ 2,463,759   $ 2,572,694   Total liabilities and stockholders’ equity $ 15,979,379   $ 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 March 31, 2026, and December 31, 2025, total assets of consolidated VIEs were $7,524,605 and $9,215,343, respectively, and total liabilities of consolidated VIEs were $5,316,717 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   March 31, 2026 March 31, 2025 Net interest income:     Interest income (1) $ 219,295   $ 190,616   Interest expense (2)   144,293     121,397   Net interest income   75,002     69,219         Increase in provision for credit losses   2,824     3,387         Other income (losses):     Net unrealized gains (losses) on derivatives   18,150     (6,469 ) Realized gains on derivatives   2,870     82   Periodic interest on derivatives, net   1,834     4,135   Net gains (losses) on derivatives   22,854     (2,252 ) Investment management and advisory fees   7,165     8,936   Interest income from investment in MSR financing receivables, net (3)   2,311     —   Net unrealized gains (losses) on financial instruments at fair value   (37,536 )   128,895   Net realized losses on sales of investments   (40,428 )   —   Gains (losses) on extinguishment of debt   (38,858 )   2,122   Other investment losses   (910 )   (417 ) Gain on origination and sale of loans, net   21,385     —   Total other income (losses)   (64,017 )   137,284         Other expenses:     Compensation and benefits (4)   26,706     13,085   General and administrative expenses   12,161     6,907   Servicing and asset manager fees   5,522     7,431   Depreciation, amortization, and impairment expense   9,649     951   Transaction expenses   98     5,688   Total other expenses   54,136     34,062   Income (loss) before income taxes   (45,974 )   169,052   Income tax (benefit) expense   (2,064 )   1,755   Net income (loss) $ (43,910 ) $ 167,297         Dividends on preferred stock   21,097     21,357         Net income (loss) available to common shareholders $ (65,007 ) $ 145,940         Net income (loss) per share available to common shareholders:     Basic $ (0.78 ) $ 1.79   Diluted $ (0.78 ) $ 1.77         Weighted average number of common shares outstanding:     Basic   83,661,145     81,350,497   Diluted   83,661,145     82,394,218   (1) Includes interest income of consolidated VIEs of $129,069 and $144,402 for the quarters ended March 31, 2026 and 2025 respectively. (2) Includes interest expense of consolidated VIEs of $63,879 and $69,651 for the quarters ended March 31, 2026 and 2025, respectively. (3) Includes interest income from investment in MSR financing receivables of a consolidated VIE of $1,395 for the quarter ended March 31, 2026. The Company did not hold any interests in MSR financing receivables for the quarter ended March 31, 2025. (4) Includes a related-party, non-cash imputed compensation expense from the Palisades Acquisition of $341 during both quarters ended March 31, 2026 and 2025, respectively. CHIMERA INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (dollars in thousands, except share and per share data) (Unaudited)         For the Quarters Ended   March 31, 2026 March 31, 2025 Comprehensive income (loss):     Net income (loss) $ (43,910 ) $ 167,297   Other comprehensive loss:     Unrealized losses on available-for-sale securities, net   (11,698 )   (1,679 ) Reclassification adjustment for net losses included in net income for other-than-temporary credit impairment losses   3,140     —   Other comprehensive loss $ (8,558 ) $ (1,679 ) Comprehensive income (loss) before preferred stock dividends $ (52,468 ) $ 165,618   Dividends on preferred stock $ 21,097   $ 21,357   Comprehensive income (loss) available to common stock shareholders $ (73,565 ) $ 144,261   Earnings available for distribution Earnings available for distribution is a non-GAAP measure and is defined as GAAP net income (loss) excluding (i) unrealized gains or losses on financial instruments carried at fair value with changes in fair value recorded in earnings, (ii) realized gains or losses on the sales of investments, (iii) gains or losses on the extinguishment of debt, (iv) changes in the provision for credit losses, (v) unrealized gains or losses on derivatives, (vi) realized gains or losses on derivatives, (vii) transaction expenses, (viii) stock compensation expenses for retirement eligible awards, (ix) amortization of intangibles, depreciation and impairment expenses, net of any tax impact (x) non-cash imputed compensation expense related to business acquisitions, and (xi) other gains and losses on equity investments. Non-cash imputed compensation expense reflects the portion of the consideration paid in the Palisades Acquisition that pursuant to the seller’s contractual arrangements is distributable to the seller’s 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 non-cash contribution from a related party to our shareholders’ 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 all incurred prior to or at the execution of the transaction and do not recur. Recurring expenses, such as servicing fees, custodial fees, trustee fees and other similar ongoing fees are not excluded from Earnings available for distribution. We believe that excluding these costs is useful to investors as it is generally consistent with our peer group’s treatment of these costs in their non-GAAP measures presentation, 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. In addition, we believe it is important for investors to review this metric which 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 Earnings available for distribution as one measure of our investment portfolio’s ability to generate income for distribution to common stockholders. Earnings available for distribution is one of the metrics, but not the exclusive metric, that our Board of Directors uses to determine 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. Earnings available for distribution, however, is different than REIT taxable income. For example, differences between Earnings available for distribution and REIT taxable income generally 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 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 Earnings available for distribution and Earnings available for distribution should not be considered as an indication of our REIT taxable income, a guaranty of our ability to pay dividends, or as a proxy for the amount of dividends we may pay. We believe Earnings available for distribution helps us and investors evaluate our financial performance period over period without the impact of certain non-recurring transactions. Therefore, Earnings available for distribution should not be viewed in isolation and is not a substitute for or superior to net income or net income per basic share computed in accordance with GAAP. In addition, our methodology for calculating Earnings available for distribution may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and accordingly, our Earnings available for distribution may not be comparable to the Earnings available for distribution 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   March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025   (dollars in thousands, except per share data) GAAP net income (loss) available to common stockholders $ (65,007 ) $ 6,501   $ (21,997 ) $ 14,024   $ 145,940   Adjustments (1):           Net unrealized (gains) losses on financial instruments at fair value   37,536     17,138     36,995     (6,971 )   (128,895 ) Net realized (gains) losses on sales of investments   40,428     23,268     (1,991 )   1,915     —   Gain (loss) on extinguishment of debt   38,858     (20 )   —     —     (2,122 ) Increase in provision for credit losses   2,824     5,322     2,587     4,409     3,387   Net unrealized (gains) losses on derivatives   (18,150 )   (27,303 )   7,907     2,554     6,469   Realized (gains) losses on derivatives   (2,870 )   17,495     (2,015 )   17,954     (82 ) Transaction expenses   98     625     9,931     390     5,688   Stock Compensation expense for retirement eligible awards   2,023     (449 )   (506 )   (501 )   1,432   Depreciation, amortization, and impairment expense (2)   9,649     4,332     948     949     951   HomeXpress acquisition intangible amortization tax impact (3)   (863 )   (837 )   —     —     —   Non-cash imputed compensation related to business acquisition   341     341     341     341     341   Other investment (gains) losses   910     (1,252 )   (1,945 )   (2,953 )   417   Earnings available for distribution $ 45,777   $ 45,161   $ 30,255   $ 32,111   $ 33,526               GAAP net income (loss) per diluted common share $ (0.78 ) $ 0.08   $ (0.27 ) $ 0.17   $ 1.77   Earnings available for distribution per adjusted diluted common share $ 0.54   $ 0.53   $ 0.37   $ 0.39   $ 0.41   (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 March 31, 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. The segment information for the three months ended March 31, 2025 has been recast to conform to the current period presentation following the Company’s segment reevaluation in the fourth quarter of 2025 in connection with the HomeXpress Acquisition. 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     March 31, 2026   March 31, 2025     (dollars in thousands)     Investment Portfolio   Residential Origination   Total   Investment Portfolio   Residential Origination   Total Net interest income:                         Interest income   $ 205,346     $ 13,949   $ 219,295     $ 190,616     $ —   $ 190,616   Interest expense     134,169       10,124     144,293       121,397       —     121,397   Net interest income     71,177       3,825     75,002       69,219       —     69,219                             Increase in provision for credit losses     2,824       —     2,824       3,387       —     3,387                             Other income (losses):                         Net unrealized gains (losses) on derivatives     18,150       —     18,150       (6,469 )     —     (6,469 ) Realized gains derivatives     2,870       —     2,870       82       —     82   Periodic interest on derivatives, net     1,834       —     1,834       4,135       —     4,135   Net gains (losses) on derivatives     22,854       —     22,854       (2,252 )     —     (2,252 ) Investment management and advisory fees     7,165       —     7,165       8,936       —     8,936   Interest income from investment in MSR financing receivables, net     2,311       —     2,311       —       —     —   Net unrealized gains (losses) on financial instruments at fair value     (37,536 )     —     (37,536 )     128,895       —     128,895   Net realized gains (losses) on sales of investments     (40,428 )     —     (40,428 )     —       —     —   Gains (losses) on extinguishment of debt     (38,858 )     —     (38,858 )     2,122       —     2,122   Other investment gains (losses)     (910 )     —     (910 )     (417 )     —     (417 ) Gain on origination and sale of loans, net     —       21,385     21,385       —       —     —   Total other income (losses)     (85,402 )     21,385     (64,017 )     137,284       —     137,284                             Other expenses:                         Compensation and benefits     15,066       11,640     26,706       13,085       —     13,085   General and administrative expenses     10,035       2,126     12,161       6,907       —     6,907   Servicing and asset manager fees     5,522       —     5,522       7,431       —     7,431   Depreciation, amortization, and impairment expense     6,222       3,427     9,649       951       —     951   Transaction expenses     98       —     98       5,688       —     5,688   Total other expenses     36,943       17,193     54,136       34,062       —     34,062                             Income (loss) before income taxes     (53,991 )     8,017     (45,974 )     169,052       —     169,052   Income tax (benefit) expense     (2,106 )     42     (2,064 )     1,755       —     1,755   Net income (loss)     (51,885 )     7,975     (43,910 )     167,297       —     167,297                             Dividends on preferred stock     21,097       —     21,097       21,357       —     21,357                             Net income (loss) available to common shareholders   $ (72,982 )   $ 7,975   $ (65,007 )   $ 145,940     $ —   $ 145,940   Investment Portfolio Segment The following tables provide a summary of the Company’s MBS portfolio, within our Investment Portfolio Segment, at March 31, 2026 and December 31, 2025.   March 31, 2026   Principal or Notional Value at Period-End (dollars in thousands) Weighted Average Amortized Cost Basis Weighted Average Fair Value Weighted Average Coupon Weighted Average Yield at Period-End (1) Non-Agency RMBS         Senior $ 840,273 $ 42.44 $ 57.79 5.7 % 20.9 % Subordinated   401,798   45.23   48.62 3.9 % 9.1 % Interest-only   2,377,673   6.07   3.16 1.0 % 4.0 % Agency RMBS           Pass-through   4,892,200   99.08   99.43 5.2 % 5.3 % CMO   310,288   99.93   100.47 4.8 % 4.9 % Interest-only   364,411   5.01   3.95 0.8 % 5.4 % Agency CMBS           Project loans   39,680   101.51   89.43 3.4 % 3.3 % Interest-only   122,454   2.59   2.04 0.7 % 13.1 % (1) Bond Equivalent Yield at period end.   December 31, 2025   Principal or Notional Value at Period-End (dollars in thousands) Weighted Average Amortized Cost Basis Weighted Average Fair Value Weighted Average Coupon Weighted Average Yield at Period-End (1) Non-Agency RMBS         Senior $ 852,887 $ 42.78 $ 59.21 5.7 % 20.3 % Subordinated   453,269   48.99   51.47 4.2 % 9.3 % Interest-only   2,428,976   6.03   3.25 0.8 % 4.4 % Agency RMBS           Pass-through   3,096,299   97.79   99.52 5.0 % 5.3 % CMO   330,871   99.94   100.31 5.1 % 5.1 % Interest-only   367,866   5.07   4.04 0.6 % 6.5 % Agency CMBS           Project loans   39,693   101.52   81.98 3.4 % 3.3 % Interest-only   123,375   2.67   2.11 0.7 % 13.0 % (1) Bond Equivalent Yield at period end. At March 31, 2026 and December 31, 2025, the secured financing agreements collateralized by MBS, Loans held for investment, and LHFS had the following remaining maturities and borrowing rates.   March 31, 2026   December 31, 2025   (dollars in thousands)   Principal (1) Weighted Average Borrowing Rates Range of Borrowing Rates   Principal (1) Weighted Average Borrowing Rates Range of Borrowing Rates Overnight $ — N/A N/A   $ — N/A N/A 1 to 29 days   2,631,766 4.22% 3.79% - 6.93%     2,630,804 4.15% 3.93% - 6.76% 30 to 59 days   2,054,467 3.94% 3.79% - 7.40%     781,654 4.86% 3.94% - 6.54% 60 to 89 days   534,202 4.19% 3.80% - 6.43%     722,995 4.75% 3.90% - 6.54% 90 to 119 days   94,307 5.65% 4.54% - 6.43%     263,081 6.78% 5.37% - 6.97% 120 to 180 days   482,730 6.17% 4.54% - 8.38%     96,153 5.47% 5.36% - 6.54% 180 days to 1 year   897,869 6.73% 4.98% - 8.15%     810,443 6.03% 4.77% - 8.38% 1 to 2 years   300,355 4.98% 4.98% - 5.38%     733,206 6.79% 4.98% - 8.15% 2 to 3 years   — —% —% - —%     — —% —% - —% Total $ 6,995,696 4.65%     $ 6,038,336 5.02%   (1) The values for secured financing agreements in the table above is net of $155 thousand and $271 thousand of deferred financing costs as of March 31, 2026 and December 31, 2025, respectively. Investment Portfolio Segment   March 31, 2026 December 31, 2025   March 31, 2026 December 31, 2025 Portfolio Composition Amortized Cost   Fair Value Non-Agency RMBS 5.1 % 5.5 %   5.3 % 5.8 % Senior 2.8 % 2.9 %   3.4 % 3.6 % Subordinated 1.3 % 1.6 %   1.4 % 1.6 % Interest-only 1.0 % 1.0 %   0.5 % 0.6 % Agency RMBS 36.4 % 24.1 %   36.4 % 24.2 % Pass-through 34.1 % 21.6 %   34.1 % 21.8 % CMO 2.2 % 2.4 %   2.2 % 2.3 % Interest-only 0.1 % 0.1 %   0.1 % 0.1 % Agency CMBS 0.3 % 0.3 %   0.3 % 0.2 % Project loans 0.3 % 0.3 %   0.2 % 0.2 % Interest-only 0.0 % 0.0 %   0.1 % 0.1 % Loans held for investment 57.9 % 69.8 %   57.7 % 69.5 % Interests in MSR financing receivables 0.3 % 0.3 %   0.3 % 0.3 % Fixed-rate percentage of portfolio 87.7 % 86.5 %   87.3 % 86.1 % Adjustable-rate percentage of portfolio 12.3 % 13.5 %   12.7 % 13.9 % The following table summarizes certain characteristics of our consolidated assets and liabilities at March 31, 2026 and December 31, 2025.   March 31, 2026 December 31, 2025   (dollars in thousands) Interest earning assets at period-end (1) $ 14,952,689 $ 15,017,791 Interest bearing liabilities at period-end $ 12,734,438 $ 13,070,591 GAAP Leverage at period-end 5.2:1 5.1:1 GAAP Leverage at period-end (recourse) 2.9:1 2.4:1 (1) Excludes cash and cash equivalents. Economic Net Interest Income - Investment Portfolio Segment Our Economic net interest income for our Investment Portfolio Segment is a non-GAAP financial measure that equals GAAP net interest income adjusted for net periodic interest on derivatives, interest income from Residential Origination segment and interest income from investment in MSR financing receivables, and excludes interest earned on cash and interest expense from Residential Origination segment. For the purpose of computing economic net interest income and ratios relating to cost of funds measures throughout this section, interest expense includes net payments on our derivatives, which is presented as a part of Net gains (losses) on derivatives in our Consolidated Statements of Operations. Interest rate swaps, Interest rate caps and Swap futures are used to manage the increase in interest paid on secured financing agreements in a rising rate environment. Presenting the net contractual interest payments on interest rate derivatives with the interest paid on interest-bearing liabilities reflects our total contractual interest payments. We believe this presentation is useful to investors because it depicts the economic value of our investment strategy by showing all components of interest expense and net interest income of our investment portfolio. However, Economic net interest income should not be viewed in isolation and is not a substitute for net interest income computed in accordance with GAAP. Where indicated, interest expense, adjusting for any interest earned on cash, is referred to as Economic interest expense. Where indicated, net interest income reflecting net periodic interest on derivatives and any interest earned on cash, is referred to as Economic net interest income. The following table reconciles the Economic net interest income to GAAP net interest income and Economic interest expense to GAAP interest expense for the periods presented.   GAAP Interest Income Interest Income on Mortgage Loan Origination Other (1) Economic Interest Income GAAP Interest Expense Periodic Interest On Derivatives, net & Interest Expense on Mortgage Loan Origination Economic Interest Expense GAAP Net Interest Income Periodic Interest On Derivatives, net Other (1) Net Interest Income on Mortgage Loan Origination Economic Net Interest Income For the Quarter Ended March 31, 2026 $ 219,295 $ (13,706 ) $ (472 ) $ 205,117 $ 144,293 $ (11,958 ) $ 132,335 $ 75,002 $ 1,834 $ (472 ) $ (3,582 ) $ 72,782 For the Quarter Ended December 31, 2025 $ 220,328 $ (12,355 ) $ (3,540 ) $ 204,433 $ 154,150 $ (15,101 ) $ 139,049 $ 66,178 $ 5,422 $ (3,540 ) $ (2,676 ) $ 65,384 For the Quarter Ended September 30, 2025 $ 209,100 $ —   $ (2,204 ) $ 206,896 $ 144,089 $ (5,751 ) $ 138,338 $ 65,011 $ 5,751 $ (2,204 ) $ —   $ 68,558 For the Quarter Ended June 30, 2025 $ 201,297 $ —   $ (2,002 ) $ 199,295 $ 135,287 $ (5,067 ) $ 130,220 $ 66,010 $ 5,067 $ (2,002 ) $ —   $ 69,075 For the Quarter Ended March 31, 2025 $ 190,616 $ —   $ (1,050 ) $ 189,566 $ 121,397 $ (4,135 ) $ 117,262 $ 69,219 $ 4,135 $ (1,050 ) $ —   $ 72,304 (1) Primarily interest income on cash and cash equivalents from our Investment Portfolio and Residential Origination segments and interest income from investment in MSR financing receivables. The table below shows our average earning assets held, interest earned on assets, yield on average interest earning assets, average debt balance, economic interest expense, economic average cost of funds, economic net interest income and net interest rate spread for the periods presented.   For the Quarters Ended   March 31, 2026 December 31, 2025 March 31, 2025   (dollars in thousands) (dollars in thousands) (dollars in thousands)   Average Balance Interest Average Yield/Cost Average Balance Interest Average Yield/Cost Average Balance Interest Average Yield/Cost Assets:                   Interest-earning assets (1)(4):                   Agency RMBS (3) $ 3,658,521 $ 43,775 5.2 % $ 2,975,920 $ 40,159 5.4 % $ 627,478 $ 7,158 5.6 % Agency CMBS   40,251   415 4.1 %   40,391   417 4.1 %   41,607   548 5.3 % Non-Agency RMBS (3)   699,370   24,225 13.8 %   763,957   24,735 12.9 %   987,344   28,269 11.5 % Loans held for investment   9,308,041   134,391 5.8 %   10,027,070   139,102 5.5 %   11,091,882   153,591 5.5 % MSR(5)   38,221   2,311 3.2 %   38,221   20 0.2 %   N/A   N/A N/A   Total $ 13,744,404 $ 205,117 6.0 % $ 13,845,559 $ 204,433 5.9 % $ 12,748,311 $ 189,566 5.9 %                     Liabilities and stockholders’ equity:                   Interest-bearing liabilities (2)(4):                   Secured financing agreements collateralized by:                   Agency RMBS (3) $ 3,827,937 $ 29,723 3.7 % $ 2,913,324 $ 27,523 4.3 % $ 487,288 $ 4,730 4.6 % Agency CMBS   31,182   299 3.8 %   30,899   329 4.3 %   29,972   338 4.5 % Non-Agency RMBS (3)   463,374   6,043 5.2 %   491,472   6,217 5.1 %   647,628   9,569 5.9 % Loans held for investment   1,457,771   24,423 6.7 %   1,533,349   26,141 6.8 %   1,828,760   27,450 6.0 % Securitized Debt   6,621,547   65,482 4.0 %   7,177,468   72,474 4.0 %   7,636,038   71,701 3.8 % Long Term Debt (3)   259,750   6,365 9.8 %   259,750   6,365 9.8 %   139,750   3,474 9.9 % Total $ 12,661,561 $ 132,335 4.2 % $ 12,406,262 $ 139,049 4.5 % $ 10,769,436 $ 117,262 4.4 %                     Economic net interest income/net interest rate spread   $ 72,782 1.8 %   $ 65,384 1.4 %   $ 72,304 1.5 %                     Net interest-earning assets/net interest margin $ 1,082,843   2.1 % $ 1,439,297   1.9 % $ 1,978,875   2.3 %                     Ratio of interest-earning assets to interest bearing liabilities   1.09       1.12       1.18     (1) Interest-earning assets at amortized cost. (2) Interest includes periodic interest on derivatives, net. (3) These amounts have been adjusted to reflect the daily outstanding averages for which the financial instruments were held during the period. (4) This table excludes interest-bearing assets and liabilities of our Residential Origination segment. Our Residential Origination segment includes average assets of $719 million, average liabilities of $674 million, interest income of $14 million, interest expense of $10 million, and net interest income of $4 million. (5) The average balance amount represents committed capital by us during the period. Average Yield has been normalized for one-time EPO payments received during the quarter. The table below shows our Net income (loss) and Economic net interest income as a percentage of average stockholder’ equity and Earnings available for distribution as a percentage of average common stockholders’ equity, and Average Tangible Common Equity. Return on average equity is defined as our GAAP net income (loss) as a percentage of average equity. Average equity is defined as the average of our beginning and ending stockholders’ equity balance for the period reported. Economic net interest income and Earnings available for distribution are non-GAAP measures as defined in previous sections. Tangible Common Equity is a non-GAAP measure and is defined below.   Return on Average Equity Economic Net Interest Income/Average Equity (1) Earnings available for distribution/Average Common Equity Earnings available for distribution/Average Tangible Common Equity   (Ratios have been annualized)   For the Quarter Ended March 31, 2026 (6.97 )% 13.03 % 11.53 % 13.24 % For the Quarter Ended December 31, 2025 4.41 % 10.75 % 11.00 % 11.91 % For the Quarter Ended September 30, 2025 (0.09 )% 10.56 % 7.26 % 7.44 % For the Quarter Ended June 30, 2025 5.38 % 10.49 % 7.54 % 7.72 % For the Quarter Ended March 31, 2025 25.89 % 11.19 % 8.10 % 8.32 % (1) Includes our Economic Net Interest Income and Average equity on our Investment Portfolio. Tangible Common Equity is a non-GAAP measure and is defined as Total stockholders' equity available to common stockholders less intangible assets and goodwill related to the business acquisitions. We believe that this measure helps our management and investors understand our capital adequacy and changes from period to period in our common stockholders' equity exclusive of changes of intangible assets. The following table presents a reconciliation of Total Stockholders’ Equity to Tangible Common Equity as of the following periods.   As of   March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025   (dollars in thousands, except share and per share data) Total stockholders’ equity $ 2,463,759   $ 2,572,694   $ 2,571,238   $ 2,624,530   $ 2,644,064   Less: Liquidation Preference on Preferred stock   (930,000 )   (930,000 )   (930,000 )   (930,000 )   (930,000 ) Total stockholders’ equity available to common stockholders $ 1,533,759   $ 1,642,694   $ 1,641,238   $ 1,694,530   $ 1,714,064               Less: Intangibles   (104,760 )   (114,246 )   (18,124 )   (18,971 )   (19,818 ) Less: Goodwill   (95,342 )   (95,342 )   (22,152 )   (22,152 )   (22,152 ) Total Intangibles & Goodwill   (200,102 )   (209,588 )   (40,276 )   (41,123 )   (41,970 )             Tangible Common Equity $ 1,333,657   $ 1,433,106   $ 1,600,962   $ 1,653,407   $ 1,672,094   Investment Portfolio Segment The following table presents changes to Accretable Discount (net of premiums) as it pertains to our Non-Agency RMBS portfolio, excluding premiums on interest-only investments, during the previous five quarters on our investment portfolio segment.   For the Quarters Ended   (dollars in thousands) Accretable Discount (Net of Premiums) March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Balance, beginning of period $ 79,422   $ 89,297   $ 108,412   $ 110,861   $ 117,203   Accretion of discount   (9,756 )   (8,795 )   (10,803 )   (8,253 )   (7,705 ) Purchases   —     —     —     —     —   Sales   (7,241 )   (4,224 )   (10,786 )   188     —   Elimination in consolidation   —     —     —     —     —   Transfers from/(to) credit reserve, net   (2,460 )   3,144     2,474     5,616     1,363   Balance, end of period $ 59,964   $ 79,422   $ 89,297   $ 108,412   $ 110,861   Residential Origination Segment NET INCOME OF $8 MILLION FOR THE QUARTER ENDED MARCH 31, 2026. EBTDA OF $11 MILLION FOR THE QUARTER ENDED MARCH 31, 2026. FUNDED PRODUCTION VOLUME OF $884 MILLION FOR THE QUARTER ENDED MARCH 31, 2026. Earnings Before Taxes, Depreciation and Amortization In managing our Residential Origination segment, management additionally uses Earnings Before Taxes, Depreciation and Amortization, or EBTDA, a non-GAAP measure, as a supplemental performance measure to evaluate the underlying operating efficiency and scalability of the business. EBTDA is defined as GAAP Net Income of the Residential Origination Segment, adjusted for federal and state tax provisions; and non-cash items such as intangibles amortization and depreciation. In our current model where we sell all the loans we originate and purchase from correspondents on a servicing-released basis, the economics are driven by origination income and loan sale activity, net and personnel-based costs. EBTDA helps isolate core operating results by excluding the effects of capital structure, non-cash depreciation and amortization, and tax attributes that can vary period to period. This measure allows management to assess margin performance, expense discipline, and incremental profitability as loan volumes fluctuate, and supports internal decision-making related to staffing levels, compensation structures, and growth initiatives. We believe this presentation is useful to investors because it provides investors with important information concerning the operating performance of our Residential Origination Segment exclusive of certain non-cash and other costs. However, EBTDA should not be viewed in isolation and is not a substitute for net income computed in accordance with GAAP. The following table provides a reconciliation from GAAP net income to common stockholders for our residential origination segment to a non-GAAP measure of EBTDA for the period presented.   For the Quarter Ended   March 31, 2026   (dollars in thousands)   Residential Origination Net income available to common shareholders $ 7,975 Adjustments:   Income tax expense   42 Amortization of intangibles and depreciation expenses   3,427 Earnings Before Taxes, Depreciation and Amortization $ 11,444 Disclaimer In this press release references to “we,” “us,” “our,” “Chimera,” or “the Company” refer to Chimera Investment Corporation and its subsidiaries unless specifically stated otherwise or the context otherwise indicates. This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, including as related to the expected impact. Actual results may differ from expectations, estimates and projections and, consequently, readers should not rely on these forward-looking statements as predictions of future events. Words such as “goal,” “expect,” “target,” “assume,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “would,” “will,” “could,” “should,” “believe,” “predict,” “potential,” “continue,” or similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results, including, among other things, those described in our most recent Annual Report on Form 10-K, and any subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, under the caption “Risk Factors.” Factors that could cause actual results to differ include, but are not limited to: our ability to obtain funding on favorable terms and access the capital markets; our ability to achieve optimal levels of leverage and effectively manage our liquidity; changes in inflation, the yield curve, interest rates and mortgage prepayment rates; our ability to manage credit risk related to our investments and comply with the Dodd-Frank Act and related laws and regulations relating to credit risk retention for securitizations; rates of default, delinquencies, forbearance, deferred payments or decreased recovery rates on our investments; the concentration of properties securing our securities and residential loans in a small number of geographic areas; our ability to execute on our business and investment strategy; our ability to determine accurately the fair market value of our assets; changes in our industry, the general economy or geopolitical conditions, including the ongoing conflicts involving the U.S. in the Middle East; our ability to successfully integrate and realize the anticipated benefits of any acquisitions, including the acquisition of HomeXpress; our ability to originate or acquire quality and profitable loans at an appropriate and consistent cost; our ability to sell the loans that we originate or acquire; our ability to refinance or obtain additional liquidity for borrowing; our ability to manage, maintain and expand our relationships with our clients, the independent mortgage brokers and bankers; our ability to operate our investment management and advisory services and manage any regulatory rules and conflicts of interest; the degree to which our hedging strategies may or may not be effective; our ability to effect our strategy to securitize residential mortgage loans; our ability to compete with competitors and source target assets at attractive prices; the ability of servicers and other third parties to perform their services at a high level and comply with applicable law and expanding regulations; our dependence on information technology and its susceptibility to cyber-attacks; the development, proliferation and use of artificial intelligence; our ability to find and retain qualified executive officers and key personnel; our ability to comply with extensive government regulation, including, but not limited to, federal and state consumer lending regulations; the impact of and changes in governmental regulations, tax law and rates, accounting guidance, refinancing and borrowing guidelines and similar matters; our ability to maintain our exemption from registration under the Investment Company Act of 1940, as amended; our ability to maintain our classification as a real estate investment trust for U.S. federal income tax purposes; the volatility of the market price and trading volume of our shares; and our ability to make distributions to our stockholders in the future. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Chimera does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statement to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Additional information concerning these, and other risk factors, is contained in Chimera’s most recent filings with the Securities and Exchange Commission (SEC). All subsequent written and oral forward-looking statements concerning Chimera or matters attributable to Chimera or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. Readers are advised that any financial information in this press release is based on Company data available at the time of this press release and, in certain circumstances, may not have been audited by the Company’s independent auditors. View source version on businesswire.com: https://www.businesswire.com/news/home/20260507696662/en/ Investor Relations
888-895-6557
investor-relations@chimerareit.com
www.chimerareit.com Original: CHIMERA INVESTMENT CORPORATION EARNINGS SUPPORTS $0.45 DIVIDEND IN VOLATILE MARKETS

Chimera Investment Corporation Announces First Quarter 2026 Earnings Release and Conference Call DateApril 23, 2026 4:15 PM
Business Wire
Chimera Investment Corporation (NYSE: CIM) announced today that it will release financial results for the first quarter ended March 31, 2026 before the market opens on Thursday, May 7, 2026.


The company will host a conference call and live webcast to discuss the results at 8:30 a.m. ET the same day.


Conference Call Details

U.S. Toll Free: (866) 604-1613

International: (201) 689-7810

Webcast: https://www.chimerareit.com/news-events/ir-calendar


Replay Information

U.S. Toll Free: (877) 660-6853

International: (201) 612-7415

Conference ID: 13759190

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.


If you would like to receive future announcements and updates, please visit www.chimerareit.com, select News & Events, and subscribe to email alerts.


About Chimera Investment Corporation


Chimera is a diversified real estate company that invests in, originates, and manages primarily residential real estate assets. The assets we may invest in and manage, through our wholly-owned subsidiary Palisades Advisory Services, LLC, for others include residential mortgage loans, Non-Agency RMBS, Agency RMBS, BPLs (including RTLs) and investor loans, MSRs and other real estate-related assets such as Agency CMBS, junior liens and HELOCs, equity appreciation rights, and reverse mortgages. Also, through our wholly-owned subsidiary, HomeXpress Mortgage Corp., we originate non-QM residential mortgage loans (both consumer and business purpose) as well as QM residential mortgage loans. Chimera was incorporated in Maryland on June 1, 2007 and started trading on the NYSE in November 2007, and is structured as an internally managed real estate investment trust, or REIT, for U.S. federal income tax purposes.


Please visit www.chimerareit.com for additional information about the Company.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260423153633/en/
Investor Relations

888-895-6557

investor-relations@chimerareit.com

www.chimerareit.com


Original: Chimera Investment Corporation Announces First Quarter 2026 Earnings Release and Conference Call Date

Chimera Increases First Quarter 2026 Common Stock Dividend to $0.45 and Declares First Quarter 2026 Preferred Stock DividendsFebruary 11, 2026 6:45 AM
Business Wire

BOARD DECLARES FIRST QUARTER 2026 DIVIDEND OF $0.45 PER SHARE OF COMMON STOCK




BOARD EXPECTS CHIMERA TO MAINTAIN A QUARTERLY DIVIDEND OF $0.45 PER COMMON SHARE FOR THE REMAINING THREE QUARTERS OF 2026




BOARD DECLARES FIRST QUARTER 2026 DIVIDEND OF $0.50 PER SHARE OF 8.00% SERIES A CUMULATIVE REDEEMABLE PREFERRED STOCK




BOARD DECLARES FIRST QUARTER 2026 DIVIDEND OF $0.6078 PER SHARE OF 8.00% SERIES B FIXED-TO-FLOATING RATE CUMULATIVE REDEEMABLE PREFERRED STOCK




BOARD DECLARES FIRST QUARTER 2026 DIVIDEND OF $0.5423 PER SHARE OF 7.75% SERIES C FIXED-TO-FLOATING RATE CUMULATIVE REDEEMABLE PREFERRED STOCK




BOARD DECLARES FIRST QUARTER 2026 DIVIDEND OF $0.5820 PER SHARE OF 8.00% SERIES D FIXED-TO-FLOATING RATE CUMULATIVE REDEEMABLE PREFERRED STOCK



The Board of Directors of Chimera Investment Corporation (“Chimera”) announced the declaration of its first quarter cash dividend of $0.45 per common share, an increase from its fourth quarter 2025 cash dividend of $0.37. The dividend is payable on April 30, 2026 to common stockholders of record on March 31, 2026. The ex-dividend date is March 31, 2026.


The Board of Directors of Chimera also announced the declaration of its first quarter cash dividend of $0.50 per share of 8.00% Series A Cumulative Redeemable Preferred Stock. The dividend is payable March 30, 2026 to preferred shareholders of record on March 2, 2026. The ex-dividend date is March 2, 2026.


The Board of Directors of Chimera also announced the declaration of its first quarter cash dividend of $0.6078 per share of 8.00% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, which reflects a rate of 9.72455%, equal to three-month CME Term SOFR (plus a spread adjustment of 0.26161%) on the dividend determination date plus a spread of 5.791%. The dividend is payable March 30, 2026 to preferred shareholders of record on March 2, 2026. The ex-dividend date is March 2, 2026.


The Board of Directors of Chimera also announced the declaration of its first quarter cash dividend of $0.5423 per share of 7.75% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, which reflects a rate of 8.67655%, equal to three-month CME Term SOFR (plus a spread adjustment of 0.26161%) on the dividend determination date plus a spread of 4.743%. The dividend is payable March 30, 2026 to preferred shareholders of record on March 2, 2026. The ex-dividend date is March 2, 2026.


The Board of Directors of Chimera also announced the declaration of its first quarter cash dividend of $0.5820 per share of 8.00% Series D Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, which reflects a rate of 9.31255%, equal to three-month CME Term SOFR (plus a spread adjustment of 0.26161%) on the dividend determination date plus a spread of 5.379%. The dividend is payable March 30, 2026 to preferred shareholders of record on March 2, 2026. The ex-dividend date is March 2, 2026.


About Chimera Investment Corporation


Chimera is a diversified real estate company that invests in, originates, and manages primarily residential real estate assets. The assets we may invest in and manage, through our wholly-owned subsidiary Palisades Advisory Services, LLC for others include residential mortgage loans, Non-Agency RMBS, Agency RMBS, BPLs (including RTLs) and investor loans, MSRs and other real estate-related assets such as Agency CMBS, junior liens and HELOCs, equity appreciation rights, and reverse mortgages. Also, through our wholly-owned subsidiary, HomeXpress Mortgage Corp., we originate non-QM residential mortgage loans (both consumer and business purpose) as well as QM residential mortgage loans. Chimera was incorporated in Maryland on June 1, 2007 and started trading on the NYSE in November 2007, and is structured as an internally managed real estate investment trust, or REIT, for U.S. federal income tax purposes.


Forward-Looking Statements


In this press release references to “we,” “us,” “our,” “Chimera,” or “the Company” refer to Chimera Investment Corporation and its subsidiaries unless specifically stated otherwise or the context otherwise indicates. This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, including as related to the expected impact. Actual results may differ from expectations, estimates and projections and, consequently, readers should not rely on these forward-looking statements as predictions of future events. Words such as “goal,” “expect,” “target,” “assume,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “would,” “will,” “could,” “should,” “believe,” “predict,” “potential,” “continue,” or similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results, including, among other things, those described in our most recent Annual Report on Form 10-K, and any subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, under the caption “Risk Factors.” Factors that could cause actual results to differ include, but are not limited to: our ability to obtain funding on favorable terms and access the capital markets; our ability to achieve optimal levels of leverage and effectively manage our liquidity; changes in inflation, the yield curve, interest rates and mortgage prepayment rates; our ability to manage credit risk related to our investments and comply with the Dodd-Frank Act and related laws and regulations relating to credit risk retention for securitizations; rates of default, delinquencies, forbearance, deferred payments or decreased recovery rates on our investments; the concentration of properties securing our securities and residential loans in a small number of geographic areas; our ability to execute on our business and investment strategy; our ability to determine accurately the fair market value of our assets; changes in our industry, the general economy or geopolitical conditions; our ability to successfully integrate and realize the anticipated benefits of any acquisitions, including the acquisition of HomeXpress; our ability to originate or acquire quality and profitable loans at an appropriate and consistent cost; our ability to sell the loans that we originate or acquire; our ability to refinance or obtain additional liquidity for borrowing; our ability to manage, maintain and expand our relationships with our clients, the independent mortgage brokers and bankers; our ability to operate our investment management and advisory services and manage any regulatory rules and conflicts of interest; the degree to which our hedging strategies may or may not be effective; our ability to effect our strategy to securitize residential mortgage loans; our ability to compete with competitors and source target assets at attractive prices; the ability of servicers and other third parties to perform their services at a high level and comply with applicable law and expanding regulations; our dependence on information technology and its susceptibility to cyber-attacks; the development, proliferation and use of artificial intelligence; our ability to find and retain qualified executive officers and key personnel; our ability to comply with extensive government regulation, including, but not limited to, federal and state consumer lending regulations; the impact of and changes in governmental regulations, tax law and rates, accounting guidance, refinancing and borrowing guidelines and similar matters; our ability to maintain our exemption from registration under the Investment Company Act of 1940, as amended; our ability to maintain our classification as a real estate investment trust for U.S. federal income tax purposes; the volatility of the market price and trading volume of our shares; and our ability to make distributions to our stockholders in the future.


Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Chimera does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statement to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Additional information concerning these and other risk factors is contained in Chimera’s most recent filings with the Securities and Exchange Commission (SEC). All subsequent written and oral forward-looking statements concerning Chimera or matters attributable to Chimera or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above.


Readers are advised that any financial information in this press release is based on Company data available at the time of this press release and, in certain circumstances, may not have been audited by Chimera’s independent auditors.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260210795864/en/
Investor Relations

888-895-6557

investor-relations@chimerareit.com

www.chimerareit.com


Original: Chimera Increases First Quarter 2026 Common Stock Dividend to $0.45 and Declares First Quarter 2026 Preferred Stock Dividends

CHIMERA INVESTMENT CORPORATION REPORTS FOURTH QUARTER AND FULL YEAR 2025 EARNINGSFebruary 11, 2026 6:46 AM
Business Wire
Chimera Investment Corporation (NYSE:CIM) today announced its financial results for the fourth quarter and full year ended December 31, 2025.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260211358927/en/
Fourth Quarter 2025 Financial Highlights:



GAAP NET INCOME OF $7 MILLION, OR $0.08 PER DILUTED COMMON SHARE FOR THE QUARTER ENDED DECEMBER 31, 2025.



EARNINGS AVAILABLE FOR DISTRIBUTION(1) OF $45 MILLION, OR $0.53 PER ADJUSTED DILUTED COMMON SHARE.



GAAP BOOK VALUE OF $19.70 PER COMMON SHARE AT DECEMBER 31, 2025, AND ECONOMIC RETURN(2) OF (0.9)% FOR THE QUARTER ENDED DECEMBER 31, 2025.



Full Year 2025 Financial Highlights:



GAAP NET INCOME OF $144 MILLION, OR $1.72 PER DILUTED COMMON SHARE FOR THE YEAR ENDED DECEMBER 31, 2025.



EARNINGS AVAILABLE FOR DISTRIBUTION(1) OF $141 MILLION, OR $1.68 PER ADJUSTED DILUTED COMMON SHARE.



ECONOMIC RETURN(2) OF 7.4% FOR THE YEAR ENDED DECEMBER 31, 2025.



“We’re extremely pleased with our fourth-quarter results and the meaningful increase in our dividend,” said Phillip J. Kardis II, President and CEO. “What you’re seeing now is the early return on the transformation we initiated in December 2024—focused, deliberate, and built for the long-term."




(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.







Fourth Quarter and Full Year 2025 Earnings Call


Chimera Investment Corporation will host a conference call and live audio webcast to discuss the results on Wednesday, February 11, 2026 at 8:30 AM ET.


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: 13757751



A replay of this call can be accessed through Wednesday, February 25, 2026.



Other Information


Chimera is a diversified real estate company that invests in, originates, and manages primarily residential real estate assets. The assets we may invest in and manage, through our wholly-owned subsidiary Palisades Advisory Services, LLC, for others include residential mortgage loans, Non-Agency RMBS, Agency RMBS, BPLs (including RTLs) and investor loans, MSRs and other real estate-related assets such as Agency CMBS, junior liens and HELOCs, equity appreciation rights, and reverse mortgages. Also, through our wholly-owned subsidiary, HomeXpress Mortgage Corp., we originate non-QM residential mortgage loans (both consumer and business purpose) as well as QM residential mortgage loans. Chimera was incorporated in Maryland on June 1, 2007 and started trading on the NYSE in November 2007, and is structured as an internally managed real estate investment trust, or REIT, for U.S. federal income tax purposes.




CHIMERA INVESTMENT CORPORATION








CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION








(dollars in thousands, except share and per share data)








(Unaudited)








 







December 31, 2025







December 31, 2024








Assets:







 







 








Cash and cash equivalents







$






278,582






 







$






83,998






 








Non-Agency RMBS, at fair value (net of allowance for credit losses of $43 million and $28 million, respectively)







 






817,280






 







 






1,064,169






 








Agency MBS, at fair value







 






3,463,485






 







 






519,218






 








Loans held for investment, at fair value







 






9,803,615






 







 






11,196,678






 








Loans held-for-sale, at fair value







 






896,117






 







 






—






 








Accrued interest receivable







 






78,691






 







 






81,386






 








Other assets







 






408,291






 







 






170,924






 








Interests in MSR financing receivables







 






37,294






 







 






—






 








Derivatives, at fair value, net







 






25,187






 







 






117






 








Total assets (1)







$






15,808,542






 







$






13,116,490






 








Liabilities:







 







 








Secured financing agreements ($7.3 billion and $4.1 billion pledged as collateral, respectively, and includes $299 million and $319 million at fair value, respectively)







$






6,031,182






 







$






2,824,371






 








Securitized debt, collateralized by Non-Agency RMBS ($210 million and $229 million pledged as collateral, respectively)







 






66,579






 







 






71,247






 








Securitized debt at fair value, collateralized by Loans held for investment ($9.4 billion and $10.2 billion pledged as collateral, respectively)







 






6,721,302






 







 






6,984,495






 








Long term debt







 






251,528






 







 






134,646






 








Payable for investments purchased







 






3,267






 







 






454,730






 








Accrued interest payable







 






43,032






 







 






41,472






 








Dividends payable







 






34,891






 







 






34,265






 








Accounts payable and other liabilities







 






82,308






 







 






45,075






 








Derivatives, at fair value, net







 






1,759






 







 






—






 








Total liabilities (1)







$






13,235,848






 







$






10,590,301






 








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, 83,402,145 and 80,922,221 shares issued and outstanding, respectively







 






834






 







 






809






 








Additional paid-in-capital







 






4,429,009






 







 






4,390,516






 








Accumulated other comprehensive income







 






146,295






 







 






159,449






 








Cumulative earnings







 






4,571,610






 







 






4,341,111






 








Cumulative distributions to stockholders







 






(6,575,426






)







 






(6,366,068






)








Total stockholders' equity







$






2,572,694






 







$






2,526,189






 








Total liabilities and stockholders' equity







$






15,808,542






 







$






13,116,490






 









(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 December 31, 2025, and December 31, 2024, total assets of consolidated VIEs were $9,215,343 and $9,970,094, respectively, and total liabilities of consolidated VIEs were $6,533,891 and $6,766,505, respectively.









CHIMERA INVESTMENT CORPORATION








CONSOLIDATED STATEMENTS OF OPERATIONS








(dollars in thousands, except share and per share data)








(Unaudited)








 







For the Years Ended








 







December 31, 2025







December 31, 2024







December 31, 2023








Net interest income:







 







 







 








Interest income (1)







$






821,343






 







$






760,950






 







$






772,904






 








Interest expense (2)







 






554,924






 







 






496,274






 







 






509,541






 








Net interest income







 






266,419






 







 






264,676






 







 






263,363






 








 







 







 







 








Increase in provision for credit losses







 






15,705






 







 






9,838






 







 






11,371






 








 







 







 







 








Other income (losses):







 







 







 








Net unrealized gains (losses) on derivatives







 






10,371






 







 






2,963






 







 






(6,411






)








Realized losses on derivatives







 






(33,352






)







 






(21,540






)







 






(40,957






)








Periodic interest on derivatives, net







 






20,375






 







 






23,780






 







 






17,167






 








Net gains (losses) on derivatives







 






(2,606






)







 






5,203






 







 






(30,201






)








Investment management and advisory fees







 






35,382






 







 






2,710






 







 






—






 








Interest income from investment in MSR financing receivables (3)







 






520






 







 






—






 







 






—






 








Net unrealized gains on financial instruments at fair value







 






81,735






 







 






10,811






 







 






34,373






 








Net realized losses on sales of investments







 






(23,192






)







 






(5,219






)







 






(31,234






)








Gains on extinguishment of debt







 






2,142






 







 






—






 







 






3,875






 








Other investment gains







 






5,733






 







 






9,543






 







 






1,091






 








Gain on origination and sale of loans, net







 






20,590






 







 






—






 







 






—






 








Total other income (losses)







 






120,304






 







 






23,048






 







 






(22,096






)








 







 







 







 








Other expenses:







 







 







 








Compensation and benefits (4)







 






56,702






 







 






41,364






 







 






30,570






 








General and administrative expenses







 






29,995






 







 






23,201






 







 






25,117






 








Servicing and asset manager fees







 






27,737






 







 






29,795






 







 






32,624






 








Amortization of intangibles and depreciation expenses







 






7,183






 







 






321






 







 






—






 








Transaction expenses







 






16,634






 







 






7,091






 







 






15,379






 








Total other expenses







 






138,251






 







 






101,772






 







 






103,690






 








Income before income taxes







 






232,767






 







 






176,114






 







 






126,206






 








Income tax expense







 






2,268






 







 






49






 







 






102






 








Net income







$






230,499






 







$






176,065






 







$






126,104






 








 







 







 







 








Dividends on preferred stock







 






86,031






 







 






85,736






 







 






73,750






 








 







 







 







 








Net income available to common shareholders







$






144,468






 







$






90,329






 







$






52,354






 








 







 







 







 








Net income per share available to common shareholders:







 







 







 








Basic







$






1.76






 







$






1.12






 







$






0.68






 








Diluted







$






1.72






 







$






1.10






 







$






0.68






 








 







 







 







 








Weighted average number of common shares outstanding:







 







 







 








Basic







 






82,175,111






 







 






80,976,745






 







 






76,685,785






 








Diluted







 






83,942,704






 







 






82,157,622






 







 






77,539,289






 









(1) Includes interest income of consolidated VIEs of $557,046, $640,499 and $593,384 for the years ended December 31, 2025, 2024, and 2023 respectively.








(2) Includes interest expense of consolidated VIEs of $283,722, $293,509, and $282,542 and for the years ended December 31, 2025, 2024, and 2023, respectively.








(3) Includes interest income from investment in MSR financing receivables of a consolidated VIE of $709, $0 and $0 for the years ended December 31, 2025, 2024 and 2023, respectively.








(4) Includes a related-party, non-cash imputed compensation expense from the Palisades Acquisition of $1,364, $10,296, and $0 for the years ended December 31, 2025, 2024 and 2023, respectively.









CHIMERA INVESTMENT CORPORATION








CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)








(dollars in thousands, except share and per share data)








(Unaudited)








 







 







 







 








 







For the Years Ended








 







December 31, 2025







December 31, 2024







December 31, 2023








Comprehensive income (loss):







 







 







 








Net income







$






230,499






 







$






176,065






 







$






126,104






 








Other comprehensive loss:







 







 







 








Unrealized losses on available-for-sale securities, net







 






(20,436






)







 






(26,219






)







 






(44,990






)








Reclassification adjustment for net losses included in net income for other-than-temporary credit impairment losses







 






7,282






 







 






—






 







 






1,313






 








Other comprehensive loss







$






(13,154






)







$






(26,219






)







$






(43,677






)








Comprehensive income before preferred stock dividends







$






217,344






 







$






149,846






 







$






82,427






 








Dividends on preferred stock







$






86,031






 







$






85,736






 







$






73,750






 








Comprehensive income available to common stock shareholders







$






131,313








$






64,110








$






8,677








Earnings available for distribution


Earnings available for distribution is a non-GAAP measure and is defined as GAAP net income (loss) excluding (i) unrealized gains or losses on financial instruments carried at fair value with changes in fair value recorded in earnings, (ii) realized gains or losses on the sales of investments, (iii) gains or losses on the extinguishment of debt, (iv) changes in the provision for credit losses, (v) unrealized gains or losses on derivatives, (vi) realized gains or losses on derivatives, (vii) transaction expenses, (viii) stock compensation expenses for retirement eligible awards, (ix) amortization of intangibles and depreciation expenses, net of any tax impact (x) non-cash imputed compensation expense related to business acquisitions, and (xi) other gains and losses on equity investments.


Non-cash imputed compensation expense reflects the portion of the consideration paid in the Palisades Acquisition that pursuant to the seller’s contractual arrangements is distributable to the seller’s 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 non-cash contribution from a related party to our shareholder’s 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 all incurred prior to or at the execution of the transaction and do not recur. Recurring expenses, such as servicing fees, custodial fees, trustee fees and other similar ongoing fees are not excluded from earnings available for distribution. We believe that excluding these costs is useful to investors as it is generally consistent with our peer group’s treatment of these costs in their non-GAAP measures presentation, 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. In addition, we believe it is important for investors to review this metric which 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 view Earnings available for distribution as one measure of our investment portfolio's ability to generate income for distribution to common stockholders. Earnings available for distribution is one of the metrics, but not the exclusive metric, that our Board of Directors uses to determine 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. Earnings available for distribution, however, is different than REIT taxable income. For example, differences between Earnings available for distribution and REIT taxable income generally 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 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 Earnings available for distribution and Earnings available for distribution should not be considered as an indication of our REIT taxable income, a guaranty of our ability to pay dividends, or as a proxy for the amount of dividends we may pay. We believe Earnings available for distribution helps us and investors evaluate our financial performance period over period without the impact of certain non-recurring transactions. Therefore, Earnings available for distribution should not be viewed in isolation and is not a substitute for or superior to net income or net income per basic share computed in accordance with GAAP. In addition, our methodology for calculating Earnings available for distribution may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and accordingly, our Earnings available for distribution may not be comparable to the Earnings available for distribution 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








 







December 31, 2025







September 30, 2025







June 30, 2025







March 31, 2025







December 31, 2024








 







(dollars in thousands, except per share data)








GAAP net income (loss) available to common stockholders







$






6,501






 







$






(21,997






)







$






14,024






 







$






145,940






 







$






(168,275






)








Adjustments (1):







 







 







 







 







 








Net unrealized (gains) losses on financial instruments at fair value







 






17,138






 







 






36,995






 







 






(6,971






)







 






(128,895






)







 






181,197






 








Net realized (gains) losses on sales of investments







 






23,268






 







 






(1,991






)







 






1,915






 







 






—






 







 






1,468






 








Gains on extinguishment of debt







 






(20






)







 






—






 







 






—






 







 






(2,122






)







 






—






 








Increase in provision for credit losses







 






5,322






 







 






2,587






 







 






4,409






 







 






3,387






 







 






4,448






 








Net unrealized (gains) losses on derivatives







 






(27,303






)







 






7,907






 







 






2,554






 







 






6,469






 







 






(276






)








Realized (gains) losses on derivatives







 






17,495






 







 






(2,015






)







 






17,954






 







 






(82






)







 






(641






)








Transaction expenses







 






625






 







 






9,931






 







 






390






 







 






5,688






 







 






4,707






 








Stock Compensation expense for retirement eligible awards







 






(449






)







 






(506






)







 






(501






)







 






1,432






 







 






(307






)








Amortization of intangibles and depreciation expenses (2)







 






4,332






 







 






948






 







 






949






 







 






951






 







 






321






 








HomeXpress acquisition intangible amortization tax impact (3)







 






(837






)







 






—






 







 






—






 







 






—






 







 






—






 








Non-cash imputed compensation related to business acquisition







 






341






 







 






341






 







 






341






 







 






341






 







 






10,296






 








Other investment (gains) losses







 






(1,252






)







 






(1,945






)







 






(2,953






)







 






417






 







 






(2,490






)








Earnings available for distribution







$






45,161






 







$






30,255






 







$






32,111






 







$






33,526






 







$






30,448






 








 







 







 







 







 







 








GAAP net income (loss) per diluted common share







$






0.08






 







$






(0.27






)







$






0.17






 







$






1.77






 







$






(2.07






)








Earnings available for distribution per adjusted diluted common share







$






0.53






 







$






0.37






 







$






0.39






 







$






0.41






 







$






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 and depreciation expenses related to acquisitions.








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







In 2025, we reevaluated our composition and the number of our reportable segments based on changes in the significance of certain business activities, including the HomeXpress Acquisition. As a result of this reevaluation, we report as two reportable segments: (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 consumer Non-QM, investor business purpose, and other Non-Agency and Agency mortgage loan products.


Segment Results of Operations


The following present, for each reportable segment, revenues, the measure of segment profit or loss, and significant segment expenses. 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








 






 






December 31, 2025








 






 






(dollars in thousands)








 






 






(Unaudited)








 






 






Investment Portfolio






 






Residential Origination






 






Total








Net interest income:






 






 






 






 






 






 








Interest income






 






$






207,369






 






 






$






12,959






 






 






$






220,328






 








Interest expense






 






 






144,471






 






 






 






9,679






 






 






 






154,150






 








Net interest income






 






 






62,898






 






 






 






3,280






 






 






 






66,178






 








 






 






 






 






 






 






 








Increase in provision for credit losses






 






 






5,322






 






 






 






—






 






 






 






5,322






 








 






 






 






 






 






 






 








Other income (losses):






 






 






 






 






 






 








Net unrealized gains (losses) on derivatives






 






 






27,303






 






 






 






—






 






 






 






27,303






 








Realized gains (losses) derivatives






 






 






(17,495






)






 






 






—






 






 






 






(17,495






)








Periodic interest on derivatives, net






 






 






5,422






 






 






 






—






 






 






 






5,422






 








Net gains (losses) on derivatives






 






 






15,230






 






 






 






—






 






 






 






15,230






 








Investment management and advisory fees






 






 






9,128






 






 






 






—






 






 






 






9,128






 








Interest income from investment in MSR financing receivables






 






 






20






 






 






 






—






 






 






 






20






 








Net unrealized gains (losses) on financial instruments at fair value






 






 






(17,138






)






 






 






—






 






 






 






(17,138






)








Net realized gains (losses) on sales of investments






 






 






(23,268






)






 






 






—






 






 






 






(23,268






)








Gains on extinguishment of debt






 






 






20






 






 






 






—






 






 






 






20






 








Other investment gains (losses)






 






 






1,252






 






 






 






—






 






 






 






1,252






 








Gain on origination and sale of loans, net






 






 






—






 






 






 






20,590






 






 






 






20,590






 








Total other income (losses)






 






 






(14,756






)






 






 






20,590






 






 






 






5,834






 








 






 






 






 






 






 






 








Other expenses:






 






 






 






 






 






 








Compensation and benefits






 






 






7,990






 






 






 






10,212






 






 






 






18,202






 








General and administrative expenses






 






 






7,138






 






 






 






2,199






 






 






 






9,337






 








Servicing and asset manager fees






 






 






6,011






 






 






 






—






 






 






 






6,011






 








Amortization of intangibles and depreciation expenses






 






 






914






 






 






 






3,418






 






 






 






4,332






 








Transaction expenses






 






 






625






 






 






 






—






 






 






 






625






 








Total other expenses






 






 






22,678






 






 






 






15,829






 






 






 






38,507






 








 






 






 






 






 






 






 








Income before income taxes






 






 






20,142






 






 






 






8,041






 






 






 






28,183






 








Income tax expense (benefit)






 






 






304






 






 






 






(453






)






 






 






(149






)








Net income






 






 






19,838






 






 






 






8,494






 






 






 






28,332






 








 






 






 






 






 






 






 








Dividends on preferred stock






 






 






21,831






 






 






 






—






 






 






 






21,831






 








 






 






 






 






 






 






 








Net income (loss) available to common shareholders






 






$






(1,993






)






 






$






8,494






 






 






$






6,501






 









 






 






For the Year Ended








 






 






December 31, 2025








 






 






(dollars in thousands)








 






 






(Unaudited)








 






 






Investment Portfolio






 






Residential Origination






 






Total








Net interest income:






 






 






 






 






 






 








Interest income






 






$






808,384






 






 






$






12,959






 






 






$






821,343






 








Interest expense






 






 






545,245






 






 






 






9,679






 






 






 






554,924






 








Net interest income






 






 






263,139






 






 






 






3,280






 






 






 






266,419






 








 






 






 






 






 






 






 








Increase in provision for credit losses






 






 






15,705






 






 






 






—






 






 






 






15,705






 








 






 






 






 






 






 






 








Other income (losses):






 






 






 






 






 






 








Net unrealized gains (losses) on derivatives






 






 






10,371






 






 






 






—






 






 






 






10,371






 








Realized losses on derivatives






 






 






(33,352






)






 






 






—






 






 






 






(33,352






)








Periodic interest on derivatives, net






 






 






20,375






 






 






 






—






 






 






 






20,375






 








Net gains (losses) on derivatives






 






 






(2,606






)






 






 






—






 






 






 






(2,606






)








Investment management and advisory fees






 






 






35,382






 






 






 






—






 






 






 






35,382






 








Interest income from investment in MSR financing receivables






 






 






520






 






 






 






—






 






 






 






520






 








Net unrealized gains on financial instruments at fair value






 






 






81,735






 






 






 






—






 






 






 






81,735






 








Net realized losses on sales of investments






 






 






(23,192






)






 






 






—






 






 






 






(23,192






)








Gains on extinguishment of debt






 






 






2,142






 






 






 






—






 






 






 






2,142






 








Other investment gains






 






 






5,733






 






 






 






—






 






 






 






5,733






 








Gain on origination and sale of loans, net






 






 






—






 






 






 






20,590






 






 






 






20,590






 








Total other income (losses)






 






 






99,714






 






 






 






20,590






 






 






 






120,304






 








 






 






 






 






 






 






 








Other expenses:






 






 






 






 






 






 








Compensation and benefits






 






 






46,490






 






 






 






10,212






 






 






 






56,702






 








General and administrative expenses






 






 






27,796






 






 






 






2,199






 






 






 






29,995






 








Servicing and asset manager fees






 






 






27,737






 






 






 






—






 






 






 






27,737






 








Amortization of intangibles and depreciation expenses






 






 






3,765






 






 






 






3,418






 






 






 






7,183






 








Transaction expenses






 






 






16,634






 






 






 






—






 






 






 






16,634






 








Total other expenses






 






 






122,422






 






 






 






15,829






 






 






 






138,251






 








 






 






 






 






 






 






 








Income before income taxes






 






 






224,726






 






 






 






8,041






 






 






 






232,767






 








Income tax expense (benefit)






 






 






2,721






 






 






 






(453






)






 






 






2,268






 








Net income






 






 






222,005






 






 






 






8,494






 






 






 






230,499






 








 






 






 






 






 






 






 








Dividends on preferred stock






 






 






86,031






 






 






 






—






 






 






 






86,031






 








 






 






 






 






 






 






 








Net income available to common shareholders






 






$






135,974






 






 






$






8,494






 






 






$






144,468






 







Investment Portfolio Segment


The following tables provide a summary of the Company’s MBS portfolio, within our Investment Portfolio Segment, at December 31, 2025 and December 31, 2024.




 







December 31, 2025








 







Principal or Notional Value




at Period-End




(dollars in thousands)







Weighted Average Amortized




Cost Basis







Weighted Average Fair Value







Weighted Average




Coupon







Weighted Average Yield at Period-End (1)








Non-Agency RMBS







 







 







 







 








Senior







$






852,887







$






42.78







$






59.21







5.7






%







20.3






%








Subordinated







 






453,269







 






48.99







 






51.47







4.2






%







9.3






%








Interest-only







 






2,428,976







 






6.03







 






3.25







0.8






%







4.4






%








Agency RMBS







 







 







 







 







 








Pass-through







 






3,096,299







 






97.79







 






99.52







5.0






%







5.3






%








CMO







 






330,871







 






99.94







 






100.31







5.1






%







5.1






%








Interest-only







 






367,866







 






5.07







 






4.04







0.6






%







6.5






%








Agency CMBS







 







 







 







 







 








Project loans







 






39,693







 






101.52







 






81.98







3.4






%







3.3






%








Interest-only







 






123,375







 






2.67







 






2.11







0.7






%







13.0






%









(1) Bond Equivalent Yield at period end.









 







December 31, 2024








 







Principal or Notional Value at Period-End




(dollars in thousands)







Weighted Average Amortized




Cost Basis







Weighted Average Fair Value







Weighted Average




Coupon







Weighted Average Yield at Period-End (1)








Non-Agency RMBS







 







 







 







 








Senior







$






1,010,128







$






45.11







$






60.83







5.7






%







17.6






%








Subordinated







 






648,977







 






59.18







 






57.99







4.5






%







8.0






%








Interest-only







 






2,644,741







 






5.81







 






2.77







0.7






%







6.6






%








Agency RMBS







 







 







 







 







 








CMO







 






464,640







 






99.97







 






99.36







5.8






%







5.8






%








Interest-only







 






380,311







 






5.15







 






4.41







0.7






%







6.9






%








Agency CMBS







 







 







 







 







 








Project loans







 






40,882







 






101.51







 






84.07







3.5






%







3.4






%








Interest-only







 






449,437







 






1.36







 






1.43







0.5






%







8.9






%









(1) Bond Equivalent Yield at period end.







At December 31, 2025 and December 31, 2024, the secured financing agreements collateralized by MBS and Loans held for investment had the following remaining maturities and borrowing rates.




 







December 31, 2025






 






December 31, 2024








 







(dollars in thousands)








 







Principal (1)







Weighted Average Borrowing Rates







Range of Borrowing Rates






 






Principal







Weighted Average Borrowing Rates







Range of Borrowing Rates








Overnight







$






—







N/A






 







N/A






 






$






—







N/A






 







N/A








1 to 29 days







 






2,630,804







4.15






%







3.93% - 6.76%






 






 






642,358







5.61






%







4.66% - 7.52%








30 to 59 days







 






781,654







4.86






%







3.94% - 6.54%






 






 






959,559







7.79






%







5.34% - 12.50%








60 to 89 days







 






722,995







4.75






%







3.90% - 6.54%






 






 






318,750







5.58






%







4.87% - 7.02%








90 to 119 days







 






263,081







6.78






%







5.37% - 6.97%






 






 






51,416







6.38






%







5.51% - 6.77%








120 to 180 days







 






96,153







5.47






%







5.36% - 6.54%






 






 






123,072







6.15






%







5.82% - 6.77%








180 days to 1 year







 






810,443







6.03






%







4.77% - 8.38%






 






 






409,760







6.79






%







5.80% - 7.49%








1 to 2 years







 






733,206







6.79






%







4.98% - 8.15%






 






 






—







N/A






 







N/A








2 to 3 years







 






—







—






%







—% - —%






 






 






337,245







5.02






%







5.02% - 5.02%








Total







$






6,038,336







5.02






%







 






 






$






2,842,160







6.48






%







 









(1) The values for secured financing agreements in the table above is net of $271 thousand of deferred financing costs as of December 31, 2025.







Investment Portfolio Segment




 






December 31, 2025






December 31, 2024






 






December 31, 2025






December 31, 2024








Portfolio Composition






Amortized Cost






 






Fair Value








Non-Agency RMBS






5.5






%






7.9






%






 






5.8






%






8.3






%








Senior






2.9






%






3.7






%






 






3.6






%






4.8






%








Subordinated






1.6






%






3.0






%






 






1.6






%






2.9






%








Interest-only






1.0






%






1.2






%






 






0.6






%






0.6






%








Agency RMBS






24.1






%






3.7






%






 






24.2






%






3.7






%








Pass-through






21.6






%






—






%






 






21.8






%






—






%








CMO






2.4






%






3.6






%






 






2.3






%






3.6






%








Interest-only






0.1






%






0.1






%






 






0.1






%






0.1






%








Agency CMBS






0.3






%






0.4






%






 






0.2






%






0.4






%








Project loans






0.3






%






0.3






%






 






0.2






%






0.3






%








Interest-only






0.0






%






0.1






%






 






0.1






%






0.1






%








Loans held for investment






69.8






%






88.0






%






 






69.5






%






87.6






%








Interests in MSR financing receivables






0.3






%






N/A






 






 






0.3






%






N/A






 








Fixed-rate percentage of portfolio






86.5






%






87.9






%






 






86.1






%






87.3






%








Adjustable-rate percentage of portfolio






13.5






%






12.1






%






 






13.9






%






12.7






%







The following table summarizes certain characteristics of our consolidated assets and liabilities at December 31, 2025 and December 31, 2024.




 







December 31, 2025







December 31, 2024








 







(dollars in thousands)








Interest earning assets at period-end (1)







$






15,017,791







$






12,780,065








Interest bearing liabilities at period-end







$






13,070,591







$






10,014,759








GAAP Leverage at period-end







5.1:1







4.0:1








GAAP Leverage at period-end (recourse)







2.4:1







1.2:1









(1) Excludes cash and cash equivalents.







Economic Net Interest Income - Investment Portfolio Segment


Our Economic net interest income for our Investment Portfolio Segment is a non-GAAP financial measure that equals GAAP net interest income adjusted for net periodic interest on derivatives, interest income from Residential Origination segment and interest income from investment in MSR financing receivables, and excludes interest earned on cash and interest expense from Residential Origination segment. For the purpose of computing economic net interest income and ratios relating to cost of funds measures throughout this section, interest expense includes net payments on our derivatives, which is presented as a part of Net gains (losses) on derivatives in our Consolidated Statements of Operations. Interest rate swaps, Interest rate cap and Swap futures are used to manage the increase in interest paid on secured financing agreements in a rising rate environment. Presenting the net contractual interest payments on interest rate derivatives with the interest paid on interest-bearing liabilities reflects our total contractual interest payments. We believe this presentation is useful to investors because it depicts the economic value of our investment strategy by showing all components of interest expense and net interest income of our investment portfolio. However, Economic net interest income should not be viewed in isolation and is not a substitute for net interest income computed in accordance with GAAP. Where indicated, interest expense, adjusting for any interest earned on cash, is referred to as Economic interest expense. Where indicated, net interest income reflecting net periodic interest on derivatives and any interest earned on cash, is referred to as Economic net interest income.


The following table reconciles the Economic net interest income to GAAP net interest income and Economic interest expense to GAAP interest expense for the periods presented.




 







GAAP




Interest




Income







Interest Income on Mortgage Loan Origination







Other (1)







Economic Interest




Income






 






GAAP




Interest




Expense







Periodic Interest On Derivatives, net & Interest Expense on Mortgage Loan Origination







Economic Interest




Expense






 






GAAP Net Interest




Income







Periodic Interest On Derivatives, net







Other (1)







Net Interest Income on Mortgage Loan Origination







Economic




Net




Interest




Income








For the Year Ended December 31, 2025







$






821,343







$






(12,355






)







$






(8,796






)







$






800,192






 






$






554,924







$






(30,054






)







$






524,870






 






$






266,419







$






20,375







$






(8,796






)







$






(2,676






)







$






275,322








For the Year Ended December 31, 2024







$






760,950







$






—






 







$






(7,352






)







$






753,598






 






$






496,274







$






(23,780






)







$






472,494






 






$






264,676







$






23,780







$






(7,352






)







$






—






 







$






281,104








For the Year Ended December 31, 2023







$






772,904







$






—






 







$






(9,871






)







$






763,033






 






$






509,541







$






(17,167






)







$






492,374






 






$






263,363







$






17,167







$






(9,871






)







$






—






 







$






270,659








 







 







 







 







 






 






 







 







 






 






 







 







 







 







 








For the Quarter Ended December 31, 2025







$






220,328







$






(12,355






)







$






(3,540






)







$






204,433






 






$






154,150







$






(15,101






)







$






139,049






 






$






66,178







$






5,422







$






(3,540






)







$






(2,676






)







$






65,384








For the Quarter Ended September 30, 2025







$






209,100







$






—






 







$






(2,204






)







$






206,896






 






$






144,089







$






(5,751






)







$






138,338






 






$






65,011







$






5,751







$






(2,204






)







$






—






 







$






68,558








For the Quarter Ended June 30, 2025







$






201,297







$






—






 







$






(2,002






)







$






199,295






 






$






135,287







$






(5,067






)







$






130,220






 






$






66,010







$






5,067







$






(2,002






)







$






—






 







$






69,075








For the Quarter Ended March 31, 2025







$






190,616







$






—






 







$






(1,050






)







$






189,566






 






$






121,397







$






(4,135






)







$






117,262






 






$






69,219







$






4,135







$






(1,050






)







$






—






 







$






72,304









(1) Primarily interest income on cash and cash equivalents from our Investment Portfolio and Residential Origination segments and interest income from investment in MSR financing receivables.







The table below shows our average earning assets held, interest earned on assets, yield on average interest earning assets, average debt balance, economic interest expense, economic average cost of funds, economic net interest income and net interest rate spread for the periods presented.




 







For the Quarters Ended








 







December 31, 2025







September 30, 2025







December 31, 2024








 







(dollars in thousands)







(dollars in thousands)







(dollars in thousands)








 







Average




Balance







Interest







Average




Yield/Cost







Average




Balance







Interest







Average




Yield/Cost







Average




Balance







Interest







Average




Yield/Cost








Assets:







 







 







 







 







 







 







 







 







 








Interest-earning assets (1)(4)(6):







 







 







 







 







 







 







 







 







 








Agency RMBS (3)







$






2,975,920







$






40,159







5.4






%







$






2,520,146







$






34,108







5.9






%







$






19,136







$






303







6.3






%








Agency CMBS







 






40,391







 






417







4.1






%







 






41,062







 






464







4.5






%







 






105,270







 






1,138







4.3






%








Non-Agency RMBS (3)







 






763,957







 






24,735







12.9






%







 






872,037







 






27,872







12.5






%







 






950,366







 






29,611







12.5






%








Loans held for investment







 






10,027,070







 






139,102







5.5






%







 






10,482,981







 






143,952







5.5






%







 






11,882,662







 






158,501







5.3






%








MSR(5)







 






38,221







 






20







0.2






%







 






38,221







 






500







5.2






%







 






—







 






—







—






%








Total







$






13,845,559







$






204,433







5.9






%







$






13,954,447







$






206,896







5.9






%







$






12,957,434







$






189,553







5.9






%








 







 







 







 







 







 







 







 







 







 








Liabilities and stockholders' equity:







 







 







 







 







 







 







 







 







 








Interest-bearing liabilities (2)(4)(6):







 







 







 







 







 







 







 







 







 








Secured financing agreements collateralized by:







 







 







 







 







 







 







 







 







 








Agency RMBS (3)







$






2,913,324







$






27,523







4.3






%







$






2,450,389







$






24,160







4.7






%







$






—







$






—







—






%








Agency CMBS







 






30,899







 






329







4.3






%







 






30,704







 






355







4.6






%







 






75,847







 






1,071







5.6






%








Non-Agency RMBS (3)







 






491,472







 






6,217







5.1






%







 






565,871







 






7,378







5.2






%







 






710,550







 






13,561







7.6






%








Loans held for investment







 






1,533,349







 






26,141







6.8






%







 






1,752,317







 






30,214







6.9






%







 






1,761,188







 






30,298







6.9






%








Securitized Debt







 






7,177,468







 






72,474







4.0






%







 






7,321,240







 






72,285







3.9






%







 






8,422,017







 






76,327







3.6






%








Long Term Debt (3)







 






259,750







 






6,365







9.8






%







 






158,212







 






3,946







10.0






%







 






—







 






—







—






%








Total







$






12,406,262







$






139,049







4.5






%







$






12,278,733







$






138,338







4.5






%







$






10,969,602







$






121,257







4.4






%








 







 







 







 







 







 







 







 







 







 








Economic net interest income/net interest rate spread







 







$






65,384







1.4






%







 







$






68,558







1.4






%







 







$






68,296







1.5






%








 







 







 







 







 







 







 







 







 







 








Net interest-earning assets/net interest margin







$






1,439,297







 







1.9






%







$






1,675,714







 







2.0






%







$






1,987,832







 







2.1






%








 







 







 







 







 







 







 







 







 







 








Ratio of interest-earning assets to interest bearing liabilities







 






1.12







 







 







 






1.14







 







 







 






1.18







 







 









(1) Interest-earning assets at amortized cost.






 






 






 






 









(2) Interest includes periodic interest on derivatives, net.






 






 






 






 









(3) These amounts have been adjusted to reflect the daily outstanding averages for which the financial instruments were held during the period.






 






 






 






 








(4) This table excludes interest-bearing assets and liabilities of our Residential Origination segment. Our Residential Origination segment includes average assets of $775 million, average liabilities of $621 million, interest income of $13 million, interest expense of $10 million, and net interest income of $3 million.

 






 






 






 









(5) The average balance amount represents committed capital by the Company during the period.






 






 






 






 








The table below shows our Net income (loss) and Economic net interest income as a percentage of average stockholders' equity and Earnings available for distribution as a percentage of average common stockholders' equity, and Average Tangible Common Equity. Return on average equity is defined as our GAAP net income (loss) as a percentage of average equity. Average equity is defined as the average of our beginning and ending stockholders' equity balance for the period reported. Economic net interest income and Earnings available for distribution are non-GAAP measures as defined in previous sections. Tangible Common Equity is a non-GAAP measure and is defined below.




 







Return on Average Equity







Economic Net Interest Income/Average Equity (1)







Earnings available for distribution/Average Common Equity







Earnings available for distribution/Average Tangible Common Equity








 







(Ratios have been annualized)







 








For the Year Ended December 31, 2025







8.91






%







10.88






%







8.51






%







8.91






%








For the Year Ended December 31, 2024







6.72






%







10.72






%







7.16






%







7.20






%








For the Year Ended December 31, 2023







4.87






%







10.45






%







7.19






%







7.19






%








 







 







 







 







 








For the Quarter Ended December 31, 2025







4.41






%







10.75






%







11.00






%







11.91






%








For the Quarter Ended September 30, 2025







(0.09






)%







10.56






%







7.26






%







7.44






%








For the Quarter Ended June 30, 2025







5.38






%







10.49






%







7.54






%







7.72






%








For the Quarter Ended March 31, 2025







25.89






%







11.19






%







8.10






%







8.32






%









(1) Average equity represents equity allocated to our Investment Portfolio Segment.







Tangible Common Equity is a non-GAAP measure and is defined as Total stockholders' equity available to common stockholders less intangible assets and goodwill related to the business acquisitions. We believe that this measure helps our management and investors understand our capital adequacy and changes from period to period in our common stockholders' equity exclusive of changes of intangible assets. The following table presents a reconciliation of Total Stockholders’ Equity to Tangible Common Equity as of December 31, 2025.




 







For the Quarters Ended








 







December 31, 2025







September 30, 2025







June 30, 2025







March 31, 2025







December 31, 2024








 







(dollars in thousands)








Total stockholders' equity







$






2,572,694






 







$






2,571,238






 







$






2,624,530






 







$






2,644,064






 







$






2,526,189






 








Less: Preferred stock







 






(930,000






)







 






(930,000






)







 






(930,000






)







 






(930,000






)







 






(930,000






)








Total stockholders' equity available to common stockholders







$






1,642,694






 







$






1,641,238






 







$






1,694,530






 







$






1,714,064






 







$






1,596,189






 








 







 







 







 







 







 








Less: Intangibles







 






(114,246






)







 






(18,124






)







 






(18,971






)







 






(19,818






)







 






(20,665






)








Less: Goodwill







 






(95,342






)







 






(22,152






)







 






(22,152






)







 






(22,152






)







 






(22,152






)








Total Intangibles & Goodwill







 






(209,588






)







 






(40,276






)







 






(41,123






)







 






(41,970






)







 






(42,817






)








 







 







 







 







 







 








Tangible Common Equity







$






1,433,106






 







$






1,600,962






 







$






1,653,407






 







$






1,672,094






 







$






1,553,372






 







Investment Portfolio Segment


The following table presents changes to Accretable Discount (net of premiums) as it pertains to our Non-Agency RMBS portfolio, excluding premiums on interest-only investments, during the previous five quarters on our investment portfolio segment.




 







For the Quarters Ended








 







(dollars in thousands)








Accretable Discount (Net of Premiums)







December 31, 2025







September 30, 2025







June 30, 2025







March 31, 2025







December 31, 2024








Balance, beginning of period







$






89,297






 







$






108,412






 







$






110,861






 







$






117,203






 







$






123,953






 








Accretion of discount







 






(8,795






)







 






(10,803






)







 






(8,253






)







 






(7,705






)







 






(8,855






)








Purchases







 






—






 







 






—






 







 






—






 







 






—






 







 






—






 








Sales







 






(4,224






)







 






(10,786






)







 






188






 







 






—






 







 






—






 








Elimination in consolidation







 






—






 







 






—






 







 






—






 







 






—






 







 






—






 








Transfers from/(to) credit reserve, net







 






3,144






 







 






2,474






 







 






5,616






 







 






1,363






 







 






2,105






 








Balance, end of period







$






79,422






 







$






89,297






 







$






108,412






 







$






110,861






 







$






117,203






 







Residential Origination Segment



MORTGAGE ORIGINATION NET INCOME OF $8 MILLION FOR THE QUARTER ENDED DECEMBER 31, 2025.




MORTGAGE ORIGINATION EBTDA OF $11 MILLION FOR THE QUARTER ENDED DECEMBER 31, 2025.




GENERATED ANNUALIZED EBTDA OF 16.2% ON $272 MILLION OF EQUITY FOR THE QUARTER ENDED DECEMBER 31, 2025.




MORTGAGE ORIGINATION FUNDED PRODUCTION VOLUME OF $1.0 BILLION FOR THE QUARTER ENDED DECEMBER 31, 2025.



Earnings Before Taxes, Depreciation and Amortization


In managing our residential origination segment, management additionally uses Earnings Before Taxes, Depreciation and Amortization, or EBTDA, a non-GAAP measure, as a supplemental performance measure to evaluate the underlying operating efficiency and scalability of the business. EBTDA is defined as GAAP Net Income of the Residential Origination Segment, adjusted for federal and state tax provisions; and non-cash items such as intangibles amortization and depreciation. Because origination lending is primarily driven by a gain on origination and sales of loan, net and personnel-based costs, EBTDA helps isolate core operating results by excluding the effects of capital structure, non-cash depreciation and amortization, and tax attributes that can vary period to period. This measure allows management to assess margin performance, expense discipline, and incremental profitability as loan volumes fluctuate, and supports internal decision-making related to staffing levels, compensation structures, and growth initiatives. We believe this presentation is useful to investors because it provides investors with important information concerning the operating performance of our Residential Origination Segment exclusive of certain non-cash and other costs. However, EBTDA should not be viewed in isolation and is not a substitute for net income computed in accordance with GAAP.


The following table provides a reconciliation from GAAP net income to common stockholders for our residential origination segment to a non-GAAP measure of EBTDA for the period presented.




 






For the Quarter and Year Ended








 






December 31, 2025








 






(dollars in thousands)








 






Residential Origination








Net income available to common shareholders






$






8,494






 








Adjustments:






 








Income tax expense (benefit)






 






(453






)








Amortization of intangibles and depreciation expenses






 






3,418






 








 






 








Earnings Before Taxes, Depreciation and Amortization






$






11,459






 







Disclaimer


In this press release references to “we,” “us,” “our,” “Chimera,” or “the Company” refer to Chimera Investment Corporation and its subsidiaries unless specifically stated otherwise or the context otherwise indicates. This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, including as related to the expected impact. Actual results may differ from expectations, estimates and projections and, consequently, readers should not rely on these forward-looking statements as predictions of future events. Words such as “goal,” “expect,” “target,” “assume,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “would,” “will,” “could,” “should,” “believe,” “predict,” “potential,” “continue,” or similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results, including, among other things, those described in our most recent Annual Report on Form 10-K, and any subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, under the caption “Risk Factors.” Factors that could cause actual results to differ include, but are not limited to: our ability to obtain funding on favorable terms and access the capital markets; our ability to achieve optimal levels of leverage and effectively manage our liquidity; changes in inflation, the yield curve, interest rates and mortgage prepayment rates; our ability to manage credit risk related to our investments and comply with the Dodd-Frank Act and related laws and regulations relating to credit risk retention for securitizations; rates of default, delinquencies, forbearance, deferred payments or decreased recovery rates on our investments; the concentration of properties securing our securities and residential loans in a small number of geographic areas; our ability to execute on our business and investment strategy; our ability to determine accurately the fair market value of our assets; changes in our industry, the general economy or geopolitical conditions; our ability to successfully integrate and realize the anticipated benefits of any acquisitions, including the acquisition of HomeXpress; our ability to originate or acquire quality and profitable loans at an appropriate and consistent cost; our ability to sell the loans that we originate or acquire; our ability to refinance or obtain additional liquidity for borrowing; our ability to manage, maintain and expand our relationships with our clients, the independent mortgage brokers and bankers; our ability to operate our investment management and advisory services and manage any regulatory rules and conflicts of interest; the degree to which our hedging strategies may or may not be effective; our ability to effect our strategy to securitize residential mortgage loans; our ability to compete with competitors and source target assets at attractive prices; the ability of servicers and other third parties to perform their services at a high level and comply with applicable law and expanding regulations; our dependence on information technology and its susceptibility to cyber-attacks; the development, proliferation and use of artificial intelligence; our ability to find and retain qualified executive officers and key personnel; our ability to comply with extensive government regulation, including, but not limited to, federal and state consumer lending regulations; the impact of and changes in governmental regulations, tax law and rates, accounting guidance, refinancing and borrowing guidelines and similar matters; our ability to maintain our exemption from registration under the Investment Company Act of 1940, as amended; our ability to maintain our classification as a real estate investment trust for U.S. federal income tax purposes; the volatility of the market price and trading volume of our shares; and our ability to make distributions to our stockholders in the future.


Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Chimera does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statement to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Additional information concerning these, and other risk factors, is contained in Chimera’s most recent filings with the Securities and Exchange Commission (SEC). All subsequent written and oral forward-looking statements concerning Chimera or matters attributable to Chimera or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above.


Readers are advised that any financial information in this press release is based on Company data available at the time of this press release and, in certain circumstances, may not have been audited by the Company’s independent auditors.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260211358927/en/
Investor Relations

888-895-6557

investor-relations@chimerareit.com

www.chimerareit.com


Original: CHIMERA INVESTMENT CORPORATION REPORTS FOURTH QUARTER AND FULL YEAR 2025 EARNINGS