CIM - CHIMERA INVESTMENT CORPORATION REPORTS 1ST QUARTER 2024 EARNINGS

May, 09 2024 06:45 AM Chimera Investment Corporation

Chimera Investment Corporation (NYSE:CIM) today announced its financial results for the first quarter ended March 31, 2024.

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Financial Highlights:

1ST QUARTER GAAP NET INCOME OF $0.45 PER DILUTED COMMON SHARE
1ST QUARTER EARNINGS AVAILABLE FOR DISTRIBUTION ⁽¹⁾ OF $0.12 PER DILUTED COMMON SHARE
GAAP BOOK VALUE OF $7.11 PER COMMON SHARE

“Chimera’s book value increased in the first quarter to $7.11 per share and generated an economic return ⁽²⁾ of 7% for the period,” said Phillip J. Kardis, Chimera’s President and CEO. “Since the beginning of the year, we acquired approximately $50 million in subordinated tranches of new issue mortgage securitizations and settled on $78 million of residential transition loans. We believe these investments will provide accretive returns to the portfolio while preserving liquidity for future deployment.”

(1)

Earnings available for distribution per adjusted diluted common share is a non-GAAP measure. See additional discussion on page 5.

(2)

Measured by the change in book value per common share plus common stock dividend.

Other Information

Chimera Investment Corporation is a publicly traded real estate investment trust, or REIT, that is primarily engaged in the business of investing directly or indirectly through its subsidiaries, on a leveraged basis, in a diversified portfolio of mortgage assets, including residential mortgage loans, Non-Agency RMBS, Agency CMBS, Agency RMBS, and other real estate related securities.

CHIMERA INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(dollars in thousands, except share and per share data)
(Unaudited)

March 31, 2024
December 31, 2023
Cash and cash equivalents
$
168,958

$
221,684

Non-Agency RMBS, at fair value (net of allowance for credit losses of $20 million and $19 million, respectively)

1,059,863


1,043,806

Agency MBS, at fair value

65,999


102,484

Loans held for investment, at fair value

11,074,519


11,397,046

Accrued interest receivable

81,147


76,960

Other assets

96,086


87,018

Total assets ⁽¹⁾
$
12,546,572

$
12,928,998

Liabilities:


Secured financing agreements ($3.6 billion and $3.6 billion pledged as collateral, respectively, and includes $340 million and $374 million at fair value, respectively)
$
2,384,678

$
2,432,115

Securitized debt, collateralized by Non-Agency RMBS ($244 million and $249 million pledged as collateral, respectively)

73,162


75,012

Securitized debt at fair value, collateralized by Loans held for investment ($10.5 billion and $10.7 billion pledged as collateral, respectively)

7,336,345


7,601,881

Payable for investments purchased

6,135


158,892

Accrued interest payable

35,481


38,272

Dividends payable

54,849


54,552

Accounts payable and other liabilities

10,336


9,355

Total liabilities ⁽¹⁾
$
9,900,986

$
10,370,079




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; 500,000,000 shares authorized, 241,417,867 and 241,360,656 shares issued and outstanding, respectively

2,415


2,414

Additional paid-in-capital

4,371,502


4,368,520

Accumulated other comprehensive income

185,447


185,668

Cumulative earnings

4,294,500


4,165,046

Cumulative distributions to stockholders

(6,208,650
)

(6,163,101
)
Total stockholders' equity
$
2,645,586

$
2,558,919

Total liabilities and stockholders' equity
$
12,546,572

$
12,928,998

(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, 2024, and December 31, 2023, total assets of consolidated VIEs were $10,299,963 and $10,501,840, respectively, and total liabilities of consolidated VIEs were $7,093,458 and $7,349,109, respectively.

Net Income (Loss)
(dollars in thousands, except share and per share data)
(unaudited)

For the Quarters Ended

March 31, 2024
March 31, 2023
Net interest income:


Interest income ⁽¹⁾
$
186,574

$
189,250

Interest expense ⁽²⁾

121,468


119,615

Net interest income

65,106


69,635




Increase (decrease) in provision for credit losses

1,347


3,062




Other investment gains (losses):


Net unrealized gains (losses) on derivatives

5,189


(8,551
)
Realized gains (losses) on derivatives

—


(34,134
)
Periodic interest cost of swaps, net

5,476


2,819

Net gains (losses) on derivatives

10,665


(39,866
)
Net unrealized gains (losses) on financial instruments at fair value

76,765


64,592

Net realized gains (losses) on sales of investments

(3,750
)

(5,264
)
Gains (losses) on extinguishment of debt

—


2,309

Other investment gains (losses)

4,686


117

Total other gains (losses)

88,366


21,888




Other expenses:


Compensation and benefits

9,213


10,491

General and administrative expenses

5,720


5,778

Servicing and asset manager fees

7,663


8,417

Transaction expenses

67


6,409

Total other expenses

22,663


31,095

Income (loss) before income taxes

129,462


57,366

Income taxes

8


—

Net income (loss)
$
129,454

$
57,366




Dividends on preferred stock

18,438


18,438

Net income (loss) available to common shareholders
$
111,016

$
38,928




Net income (loss) per share available to common shareholders:


Basic
$
0.46

$
0.17

Diluted
$
0.45

$
0.17




Weighted average number of common shares outstanding:


Basic

243,718,142


231,994,620

Diluted

245,154,643


235,201,614

(1) Includes interest income of consolidated VIEs of $146,917 and $139,902 for the quarters ended March 31, 2024 and 2023, respectively.

(2) Includes interest expense of consolidated VIEs of $73,123 and $60,152 for the quarters ended March 31, 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 Quarters Ended

March 31, 2024
March 31, 2023
Comprehensive income (loss):


Net income (loss)
$
129,454

$
57,366

Other comprehensive income:


Unrealized gains (losses) on available-for-sale securities, net

(221
)

(5,905
)
Reclassification adjustment for net realized losses (gains) included in net income

—


1,315

Other comprehensive income (loss)
$
(221
)
$
(4,590
)
Comprehensive income (loss) before preferred stock dividends
$
129,233

$
52,776

Dividends on preferred stock
$
18,438

$
18,438

Comprehensive income (loss) available to common stock shareholders
$
110,795

$
34,338

Earnings available for distribution

Earnings available for distribution is a non-GAAP measure and is defined as GAAP net income excluding unrealized gains or losses on financial instruments carried at fair value with changes in fair value recorded in earnings, realized gains or losses on the sales of investments, gains or losses on the extinguishment of debt, changes in the provision for credit losses, other gains or losses on equity investments, and transaction expenses incurred. Transaction expenses are primarily comprised of costs only incurred at the time of execution of our securitizations and certain structured secured financing agreements and include costs such as underwriting fees, legal fees, diligence 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 groups 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 issue 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.

Earnings available for distribution is the Economic net interest income, as defined previously, reduced by compensation and benefits expenses (adjusted for awards to retirement eligible employees), general and administrative expenses, servicing and asset manager fees, income tax benefits or expenses incurred during the period, as well as the preferred dividend charges.

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. In addition, Earnings available for distribution is different than REIT taxable income and the determination of whether we have met the requirement to distribute at least 90% of our annual REIT taxable income (subject to certain adjustments) to our stockholders in order to maintain qualification as a REIT is not based on Earnings available for distribution. Therefore, 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 as described above helps us and investors evaluate our financial performance period over period without the impact of certain transactions. Therefore, Earnings available for distribution should not be viewed in isolation and is not a substitute for 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, 2024
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023

(dollars in thousands, except per share data)
GAAP Net income (loss) available to common stockholders
$
111,016

$
12,104

$
(16,268
)
$
17,586

$
38,928

Adjustments:





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

(76,765
)

(6,815
)

43,988


(6,954
)

(64,592
)
Net realized (gains) losses on sales of investments

3,750


3,752


460


21,758


5,264

(Gains) losses on extinguishment of debt

—


2,473


—


(4,039
)

(2,309
)
Increase (decrease) in provision for credit losses

1,347


2,330


3,217


2,762


3,062

Net unrealized (gains) losses on derivatives

(5,189
)

15,871


(17
)

(17,994
)

8,551

Realized (gains) losses on derivatives

—


—


—


6,822


34,134

Transaction expenses

67


425


90


8,456


6,409

Stock Compensation expense for retirement eligible awards

1,024


(391
)

(392
)

(388
)

2,141

Other investment (gains) losses

(4,686
)

986


(2,381
)

421


(117
)
Earnings available for distribution
$
30,564

$
30,735

$
28,697

$
28,430

$
31,471







GAAP net income (loss) per diluted common share
$
0.45

$
0.05

$
(0.07
)
$
0.08

$
0.17

Earnings available for distribution per adjusted diluted common share
$
0.12

$
0.13

$
0.13

$
0.12

$
0.13

The following tables provide a summary of the Company’s MBS portfolio at March 31, 2024 and December 31, 2023.


March 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
$
1,057,200
$
45.50
62.83
5.7
%
16.9
%
Subordinated

610,429

53.85
51.49
3.8
%
7.2
%
Interest-only

2,819,698

5.57
2.88
0.5
%
6.2
%
Agency RMBS





Interest-only

388,676

5.01
3.83
0.1
%
6.6
%
Agency CMBS





Project loans

48,651

101.28
89.84
3.7
%
3.6
%
Interest-only

474,631

1.55
1.56
0.5
%
8.4
%

(1) Bond Equivalent Yield at period end.


December 31, 2023

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
$
1,073,632
$
45.69
$
62.98
5.7
%
17.3
%
Subordinated

583,049

50.92

47.49
3.3
%
6.7
%
Interest-only

2,874,680

5.49

3.16
0.5
%
4.2
%
Agency RMBS





Interest-only

392,284

4.90

3.83
0.1
%
5.7
%
Agency CMBS





Project loans

86,572

101.44

91.46
4.0
%
3.8
%
Interest-only

478,239

1.62

1.73
0.5
%
8.2
%

(1) Bond Equivalent Yield at period end.

At March 31, 2024 and December 31, 2023, the secured financing agreements collateralized by MBS and Loans held for investment had the following remaining maturities and borrowing rates.



March 31, 2024

December 31, 2023


(dollars in thousands)


Principal

Weighted Average Borrowing Rates

Range of Borrowing Rates

Principal

Weighted Average Borrowing Rates

Range of Borrowing Rates
Overnight

$
—

N/A


N/A

$
—

N/A


NA
1 to 29 days

$
259,229

7.56
%

6.20% - 8.18%

$
272,490

7.35
%

6.30% - 8.22%
30 to 59 days


473,497

6.71
%

5.44% - 7.82%


495,636

6.68
%

5.58% - 7.87%
60 to 89 days


194,024

7.21
%

5.84% - 7.58%


305,426

7.17
%

5.93% - 7.85%
90 to 119 days


69,793

6.29
%

6.29% - 6.29%


54,376

7.46
%

6.59% - 7.80%
120 to 180 days


187,582

6.89
%

6.35% - 7.65%


105,727

7.09
%

6.72% - 7.80%
180 days to 1 year


616,005

9.50
%

6.63% - 12.50%


39,620

7.06
%

6.66% - 7.39%
1 to 2 years


244,967

8.33
%

8.33% - 8.33%


808,601

9.36
%

8.36% - 12.50%
2 to 3 years


—

N/A


N/A


—

N/A


N/A
Greater than 3 years


358,581

5.08
%

5.08% - 5.08%


362,215

5.11
%

5.10% - 7.15%
Total

$
2,403,678

7.48
%



$
2,444,091

7.51
%

The following table summarizes certain characteristics of our portfolio at March 31, 2024 and December 31, 2023.

March 31, 2024

December 31, 2023

GAAP Leverage at period-end

3.7:1

4.0:1

GAAP Leverage at period-end (recourse)

0.9:1

1.0:1


March 31, 2024
December 31, 2023

March 31, 2024
December 31, 2023
Portfolio Composition
Amortized Cost

Fair Value
Non-Agency RMBS
7.9
%
7.5
%

8.7
%
8.3
%
Senior
3.9
%
4.0
%

5.4
%
5.4
%
Subordinated
2.7
%
2.3
%

2.6
%
2.2
%
Interest-only
1.3
%
1.2
%

0.7
%
0.7
%
Agency RMBS
0.2
%
0.2
%

0.1
%
0.1
%
Interest-only
0.2
%
0.2
%

0.1
%
0.1
%
Agency CMBS
0.5
%
0.7
%

0.4
%
0.7
%
Project loans
0.4
%
0.6
%

0.4
%
0.6
%
Interest-only
0.1
%
0.1
%

0.1
%
0.1
%
Loans held for investment
91.4
%
91.6
%

90.8
%
90.9
%
Fixed-rate percentage of portfolio
96.5
%
96.5
%

96.0
%
95.9
%
Adjustable-rate percentage of portfolio
3.5
%
3.5
%

4.0
%
4.1
%

Economic Net Interest Income

Our Economic net interest income is a non-GAAP financial measure that equals GAAP net interest income adjusted for net periodic interest cost of interest rate swaps and excludes interest earned on cash. 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 interest rate swaps, which is presented as a part of Net gains (losses) on derivatives in our Consolidated Statements of Operations. Interest rate swaps 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 swaps 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 cost of interest rate swaps 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

GAAP Interest Expense
Periodic Interest Cost of Interest Rate Swaps
Economic Interest Expense

GAAP Net Interest Income
Periodic Interest Cost of Interest Rate Swaps
Other ⁽¹⁾
Economic Net Interest Income
For the Quarter Ended March 31, 2024
$
186,574

$
121,468
$
(5,476
)
$
115,992

$
65,106
$
5,476
$
(2,581
)
$
68,001
For the Quarter Ended December 31, 2023
$
191,204

$
126,553
$
(5,296
)
$
121,257

$
64,651
$
5,296
$
(1,651
)
$
68,296
For the Quarter Ended September 30, 2023
$
195,591

$
132,193
$
(4,894
)
$
127,299

$
63,398
$
4,894
$
(2,301
)
$
65,991
For the Quarter Ended June 30, 2023
$
196,859

$
131,181
$
(4,159
)
$
127,022

$
65,678
$
4,159
$
(2,884
)
$
66,953
For the Quarter Ended March 31, 2023
$
189,250

$
119,615
$
(2,819
)
$
116,796

$
69,635
$
2,819
$
(3,035
)
$
69,419

(1) Primarily interest income on cash and cash equivalents.

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 Quarter Ended

March 31, 2024

December 31, 2023

March 31, 2023

(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⁾ :*













Agency RMBS
$
19,363
$
325
6.7
%

$
19,136

$
303
6.3
%

$
18,692

$
322
6.9
%
Agency CMBS

60,345

715
4.7
%


105,270


1,138
4.3
%


307,846


2,957
3.8
%
Non-Agency RMBS

961,903

28,935
12.0
%


950,366


29,611
12.5
%


990,721


30,098
12.2
%
Loans held for investment

11,643,716

154,018
5.3
%


11,882,662


158,501
5.3
%


12,334,025


152,838
5.0
%
Total
$
12,685,327
$
183,993
5.8
%

$
12,957,434

$
189,553
5.9
%

$
13,651,284

$
186,215
5.5
%














Liabilities and stockholders' equity:













*Interest-bearing liabilities ⁽²⁾ :*













Secured financing agreements collateralized by:













Agency RMBS
$
—
$
—
—
%

$
—

$
—
—
%

$
4,095

$
52
5.1
%
Agency CMBS

44,632

661
5.9
%


75,847


1,071
5.6
%


252,102


2,956
4.7
%
Non-Agency RMBS

681,101

11,736
6.9
%


710,550


13,561
7.6
%


762,989


16,063
8.4
%
Loans held for investment

1,696,221

28,106
6.6
%


1,761,188


30,298
6.9
%


2,189,967


34,839
6.4
%
Securitized debt

8,207,251

75,489
3.7
%


8,422,017


76,327
3.6
%


8,049,843


62,886
3.1
%
Total
$
10,629,205
$
115,992
4.4
%

$
10,969,602

$
121,257
4.4
%

$
11,258,996

$
116,796
4.1
%














Economic net interest income/net interest rate spread

$
68,001
1.4
%



$
68,296
1.5
%



$
69,419
1.4
%














Net interest-earning assets/net interest margin
$
2,056,122

2.1
%

$
1,987,832


2.1
%

$
2,392,288


2.0
%














Ratio of interest-earning assets to interest bearing liabilities

1.19




1.18





1.21

















(1) Interest-earning assets at amortized cost












(2) Interest includes periodic net interest cost on swaps

The table below shows our Net Income 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. 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.


Return on Average Equity
Economic Net Interest Income/Average Equity
Earnings available for distribution/Average Common Equity

(Ratios have been annualized)
For the Quarter Ended March 31, 2024
19.90
%
10.45
%
7.31
%
For the Quarter Ended December 31, 2023
4.84
%
10.81
%
7.70
%
For the Quarter Ended September 30, 2023
0.34
%
10.40
%
7.14
%
For the Quarter Ended June 30, 2023
5.51
%
10.24
%
6.75
%
For the Quarter Ended March 31, 2023
8.63
%
10.45
%
7.28
%

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.


For the Quarters Ended

(dollars in thousands)
Accretable Discount (Net of Premiums)
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
Balance, beginning of period
$
139,737

$
147,252

$
145,322

$
157,253

$
176,635

Accretion of discount

(8,179
)

(12,840
)

(9,022
)

(10,620
)

(11,663
)
Purchases

1,848


—


(9
)

—


—

Sales

—


—


—


—


—

Elimination in consolidation

—


—


—


—


—

Transfers from/(to) credit reserve, net

(2,782
)

5,325


10,961


(1,311
)

(7,719
)
Balance, end of period
$
130,624

$
139,737

$
147,252

$
145,322

$
157,253

Disclaimer

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. 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 “expect,” “target,” “assume,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believe,” “predicts,” “potential,” “continue,” and 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 business and investment strategy; our ability to accurately forecast the payment of future dividends on our common and preferred stock, and the amount of such dividends; our ability to determine accurately the fair market value of our assets; availability of investment opportunities in real estate-related and other securities, including our valuation of potential opportunities that may arise as a result of current and future market dislocations; effect of a pandemic or other national or international crisis on real estate market, financial markets and our Company, including the impact on the value, availability, financing and liquidity of mortgage assets; changes in the value of our investments, including negative changes resulting in margin calls related to the financing of our assets; changes in interest rates and mortgage prepayment rates; prepayments of the mortgage and other loans underlying our mortgage-backed securities, or RMBS, or other asset-backed securities, or ABS; rates of default, delinquencies or decreased recovery rates on our investments; general volatility of the securities markets in which we invest; our ability to maintain existing financing arrangements and our ability to obtain future financing arrangements; our ability to effect our strategy to securitize residential mortgage loans; our ability to consummate proposed transactions; interest rate mismatches between our investments and our borrowings used to finance such purchases; effects of interest rate caps on our adjustable-rate investments; the degree to which our hedging strategies may or may not protect us from interest rate volatility; the impact of and changes to various government programs; impact of and changes in governmental regulations, tax law and rates, accounting guidance, and similar matters; market trends in our industry, interest rates, the debt securities markets or the general economy; estimates relating to our ability to make distributions to our stockholders in the future; our understanding of our competition; availability of qualified personnel; our ability to maintain our classification as a real estate investment trust, or, REIT, for U.S. federal income tax purposes; our ability to maintain our exemption from registration under the Investment Company Act of 1940, as amended, or 1940 Act; our expectations regarding materiality or significance; and the effectiveness of our disclosure controls and procedures.

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

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Investor Relations
888-895-6557
www.chimerareit.com

Company Name:	Chimera Investment Corporation
Stock Symbol:	CIM
Market:	NYSE
Website:	chimerareit.com

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