CHIMERA INVESTMENT CORP 8-K
EarningsImpairment / charge
Seasoned-loan sales fund a shift into Agency MBS to lift earnings potential, while repositioning weighs on book value.
Filed 2026-05-07 06:45 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q1 2026 results. Chimera’s GAAP loss reflected investment valuation and transaction losses, while earnings available for distribution covered the $0.45 dividend. The company continued repositioning its portfolio, selling seasoned loans and redeploying capital into Agency mortgage-backed securities.
Key Figures
| Metric | Q1 2026 | Q1 2025 | Y/Y |
|---|---|---|---|
| Net interest income | $75.0M | $69.2M | +8.4% |
| Net income (loss), GAAP | $(43.9)M | $167M | n/m |
| Net income (loss) available to common shareholders, GAAP | $(65.0)M | $145.9M | n/m |
| Diluted EPS, GAAP | $(0.78) | $1.77 | n/m |
| Earnings available for distribution per adjusted diluted common share, non-GAAP | $0.54 | $0.41 | +31.7% |
- Investment portfolio repositioning included redeeming 8 securitizations backed by $1.5B of loans, selling $1.2B of loans and retaining $287M. The transactions released $195M for reinvestment in Agency mortgage-backed securities; the company estimates a $15M increase in annual earnings potential.
- Net income included $(37.5)M of unrealized losses on financial instruments, $(40.4)M of realized losses on investment sales and $(38.9)M of losses on debt extinguishment.
- Book value was $18.34 per share, down 6.9% from $19.70 at year-end; nearly two-thirds of the decline was attributed to portfolio repositioning. Earnings available for distribution covered the $0.45 dividend by 120%; the dividend increased from $0.37 in Q4 2025.
- Residential Origination generated $884M of production volume, up 39% Y/Y on HomeXpress standalone results, and $11.4M of non-GAAP EBTDA, with a 16.8% EBTDA return on equity.
Guidance
No guidance in this filing.
Investor Takeaways
- Track whether the portfolio repositioning produces the estimated increase in annual earnings while limiting further book-value pressure.
- Watch whether earnings available for distribution continues to cover the $0.45 dividend as origination volume and portfolio results develop.
The summary is written by an AI model reading the filing.
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