2023-05-04 10:31:57 ET
Chimera Investment's ( NYSE: CIM ) first-quarter earnings fell short of the average analyst estimate and dropped from a year ago as net interest income nearly halved.
During the quarter, CEO Phillip Kardis said, the mortgage REIT "committed to purchase $1.25 billion of diversified mortgage loans, completed three securitizations, reduced recourse leverage by $237 million, and generated a 2% total economic return."
Subsequent to the end of Q1 (March 31), the company has completed four securitizations, reduced its RPL loan warehouse exposure to zero, and lowered its recourse leverage by $400M more, he added.
Q1 earnings available for distribution of $0.13 per share, missing the $0.16 consensus, advanced from $0.11 in the prior quarter and dropped from $0.39 a year ago.
CIM slipped 3.9% in Thursday morning trading.
Net interest income came in at $69.6M, trailing the Visible Alpha consensus of $84.3M, plunging from $137.7M for the quarter ended March 31, 2022.
The company increased its provision for credit losses by $3.06M in Q1, compared with a $240K increase in the year-earlier quarter.
GAAP book value was $7.41 per common share at March 31, 2023, down from $7.49 at Dec. 31, 2022.
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Chimera Investment Q1 earnings fall short as net interest income dives