CHIMERA INVESTMENT CORPORATION REPORTS 2ND QUARTER 2019 EARNINGS

  • 2ND QUARTER GAAP NET INCOME OF $0.22 PER COMMON SHARE
  • 2ND QUARTER CORE EARNINGS(1) OF $0.53 PER COMMON SHARE
  • GAAP BOOK VALUE OF $16.24 PER COMMON SHARE

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Chimera Financial Supplement

NEW YORK--()--Chimera Investment Corporation (NYSE:CIM) today announced its financial results for the second quarter ended June 30, 2019. The Company’s GAAP net income for the second quarter was $40 million or $0.22 per common share. Core earnings(1) for the second quarter ended June 30, 2019 was $98 million or $0.53 per common share. Economic return on book value for the second quarter was 3.6%(2).

“Chimera’s book value increased to $16.24 per share contributing to our economic return of 3.6% for the second quarter and 8.4% for the first half of 2019,” said Matthew Lambiase, Chimera’s CEO and President. “Our investment strategy remains focused on generating attractive risk adjusted returns while protecting book value for our shareholders.”

(1) Core earnings is a non-GAAP measure. See additional discussion on page 5.

(2) Economic return on book value is based on the change in GAAP book value per common share plus the dividend declared per common share.

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 our 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)

 

June 30, 2019

December 31, 2018

Cash and cash equivalents

$

54,034

 

$

47,486

 

Non-Agency RMBS, at fair value

2,699,367

 

2,486,130

 

Agency MBS, at fair value

12,154,575

 

12,188,950

 

Loans held for investment, at fair value

12,301,263

 

12,572,581

 

Receivable for investment

75,059

 

 

Accrued interest receivable

121,393

 

123,442

 

Other assets

231,828

 

252,582

 

Derivatives, at fair value, net

211

 

37,468

 

Total assets (1)

$

27,637,730

 

$

27,708,639

 

Liabilities:

 

 

Repurchase agreements ($16.4 billion and $15.8 billion pledged as collateral, respectively)

$

14,514,719

 

$

14,030,465

 

Securitized debt, collateralized by Non-Agency RMBS ($962 million and $1.0 billion pledged as collateral, respectively)

145,130

 

159,955

 

Securitized debt at fair value, collateralized by loans held for investment ($11.5 billion and $12.3 billion pledged as collateral, respectively)

7,881,087

 

8,455,376

 

Payable for investments purchased

921,507

 

1,136,157

 

Accrued interest payable

84,234

 

110,402

 

Dividends payable

97,091

 

95,986

 

Accounts payable and other liabilities

25,012

 

16,469

 

Total liabilities (1)

$

23,668,780

 

$

24,004,810

 

 

 

 

Commitments and Contingencies (See Note 15)

 

 

 

 

 

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 and 0 shares issued and outstanding, respectively ($200,000 liquidation preference)

80

 

 

Common stock: par value $0.01 per share; 500,000,000 and 300,000,000 shares authorized, 187,157,432 and 187,052,398 shares issued and outstanding, respectively

1,872

 

1,871

 

Additional paid-in-capital

4,272,001

 

4,072,093

 

Accumulated other comprehensive income

739,090

 

626,832

 

Cumulative earnings

3,556,396

 

3,379,489

 

Cumulative distributions to stockholders

(4,600,781

)

(4,376,748

)

Total stockholders' equity

$

3,968,950

 

$

3,703,829

 

Total liabilities and stockholders' equity

$

27,637,730

 

$

27,708,639

 

(1) The Company's consolidated statements of financial condition include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations and liabilities of the VIE for which creditors do not have recourse to the primary beneficiary (Chimera Investment Corporation). As of June 30, 2019 and December 31, 2018, total assets of consolidated VIEs were $12,715,740 and $13,392,951, respectively, and total liabilities of consolidated VIEs were $8,060,256 and $8,652,158, respectively.

CHIMERA INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

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

(Unaudited)

 

For the Quarters Ended

For the Six Months Ended

 

June 30, 2019

June 30, 2018

June 30, 2019

June 30, 2018

Net interest income:

 

 

 

 

Interest income (1)

$

339,914

 

$

306,436

 

$

690,303

 

$

603,567

 

Interest expense (2)

198,110

 

161,266

 

401,060

 

310,518

 

Net interest income

141,804

 

145,170

 

289,243

 

293,049

 

Other-than-temporary impairments:

 

 

 

 

Total other-than-temporary impairment losses

 

(805

)

(801

)

(1,099

)

Portion of loss recognized in other comprehensive income

 

(8,326

)

(4,052

)

(9,190

)

Net other-than-temporary credit impairment losses

 

(9,131

)

(4,853

)

(10,289

)

Other investment gains (losses):

 

 

 

 

Net unrealized gains (losses) on derivatives

(132,171

)

25,895

 

(221,486

)

107,314

 

Realized gains (losses) on terminations of interest rate swaps

(95,211

)

 

(203,257

)

 

Net realized gains (losses) on derivatives

(9,697

)

(1,393

)

(16,974

)

11,693

 

Net gains (losses) on derivatives

(237,079

)

24,502

 

(441,717

)

119,007

 

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

190,748

 

(18,364

)

391,561

 

(3,898

)

Net realized gains (losses) on sales of investments

(7,526

)

2,167

 

1,077

 

2,167

 

Gains (losses) on extinguishment of debt

(608

)

387

 

(608

)

10,057

 

Total other gains (losses)

(54,465

)

8,692

 

(49,687

)

127,333

 

 

 

 

 

 

Other expenses:

 

 

 

 

Compensation and benefits

12,114

 

8,689

 

26,484

 

17,100

 

General and administrative expenses

7,030

 

5,860

 

12,914

 

11,349

 

Servicing fees

9,280

 

9,943

 

18,243

 

21,277

 

Deal expenses

 

2,095

 

 

3,183

 

Total other expenses

28,424

 

26,587

 

57,641

 

52,909

 

Income (loss) before income taxes

58,915

 

118,144

 

177,062

 

357,184

 

Income taxes

155

 

36

 

155

 

68

 

Net income (loss)

$

58,760

 

$

118,108

 

$

176,907

 

$

357,116

 

 

 

 

 

 

Dividends on preferred stock

18,438

 

9,400

 

35,829

 

18,800

 

 

 

 

 

 

Net income (loss) available to common shareholders

$

40,322

 

$

108,708

 

$

141,078

 

$

338,316

 

 

 

 

 

 

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

 

 

 

 

Basic

$

0.22

 

$

0.58

 

$

0.75

 

$

1.81

 

Diluted

$

0.21

 

$

0.58

 

$

0.75

 

$

1.80

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

Basic

187,153,007

 

186,994,743

 

187,132,842

 

187,272,469

 

Diluted

188,271,483

 

187,422,145

 

188,254,266

 

187,738,443

 

(1) Includes interest income of consolidated VIEs of $200,703 and $229,746 for the quarters ended June 30, 2019 and 2018, respectively and $407,814 and $464,772 for the six months ended June 30, 2019 and 2018.

(2) Includes interest expense of consolidated VIEs of $87,529 and $99,507 for the quarters ended June 30, 2019 and 2018, respectively and $178,556 and $199,121 for the six months ended June 30, 2019 and 2018.

CHIMERA INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

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

(Unaudited)

 

 

 

 

 

 

For the Quarters Ended

For the Six Months Ended

 

June 30, 2019

June 30, 2018

June 30, 2019

June 30, 2018

Comprehensive income (loss):

 

 

 

 

Net income (loss)

$

58,760

 

$

118,108

 

$

176,907

 

$

357,116

 

Other comprehensive income:

 

 

 

 

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

58,833

 

(42,341

)

85,218

 

(131,157

)

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

 

9,131

 

4,853

 

10,289

 

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

7,269

 

(4,383

)

22,187

 

(4,383

)

Other comprehensive income (loss)

66,102

 

(37,593

)

112,258

 

(125,251

)

Comprehensive income (loss) before preferred stock dividends

$

124,862

 

$

80,515

 

$

289,165

 

$

231,865

 

Dividends on preferred stock

$

18,438

 

$

9,400

 

$

35,829

 

$

18,800

 

Comprehensive income (loss) available to common stock shareholders

$

106,424

 

$

71,115

 

$

253,336

 

$

213,065

 

Core earnings

Core earnings is a non-GAAP measure and is defined as GAAP net income excluding unrealized gains on the aggregate portfolio, impairment losses, realized gains on sales of investments, realized gains or losses on futures, realized gains or losses on swap terminations, gain on deconsolidation, extinguishment of debt and expenses incurred in relation to a securitization sponsored by us (deal expenses). In addition, stock compensation expense charges incurred on awards to retirement eligible employees is reflected as an expense over a vesting period (36 months) rather than reported as an immediate expense. In the current period we have adjusted our definition of core to remove expenses in relation to a securitization sponsored by us (deal expenses) and stock compensation expense charges incurred on awards to retirement eligible employees. Prior period core earnings have been updated to reflect changes in the definition of core in the current period.

As defined, core earnings include interest income and expense as well as periodic cash settlements on interest rate swaps used to hedge interest rate risk and other expenses. Core earnings is inclusive of preferred dividend charges, compensation and benefits (adjusted for awards to retirement eligible employees), general and administrative expenses, servicing fees, as well as income tax expenses incurred during the period. Management believes that the presentation of core earnings provides investors with a useful measure, but has important limitations. We believe core earnings as described above helps us evaluate our financial performance period over period without the impact of certain transactions but is of limited usefulness as an analytical tool. Therefore, core earnings 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 core earnings may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and accordingly, our reported core earnings may not be comparable to the core earnings reported by other REITs.

The following table provides GAAP measures of net income and net income per basic share available to common stockholders for the periods presented and details with respect to reconciling the line items to core earnings and related per average basic common share amounts:

 

For the Quarters Ended

 

June 30, 2019

March 31, 2019

December 31, 2018

September 30, 2018

June 30, 2018

 

(dollars in thousands, except per share data)

GAAP Net income available to common stockholders

$

40,322

 

$

100,755

 

$

(117,235

)

$

147,361

 

$

108,708

 

Adjustments:

 

 

 

 

 

Net other-than-temporary credit impairment losses

 

4,853

 

4,269

 

7,233

 

9,131

 

Net unrealized (gains) losses on derivatives

132,171

 

89,315

 

319,673

 

(71,197

)

(25,895

)

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

(190,748

)

(200,812

)

(84,836

)

34,306

 

18,364

 

Net realized (gains) losses on sales of investments

7,526

 

(8,603

)

(1,213

)

6,123

 

(2,167

)

(Gains) losses on extinguishment of debt

608

 

 

(7,055

)

(9,263

)

(387

)

Realized (gains) losses on terminations of interest rate swaps

95,211

 

108,046

 

 

 

 

Net realized (gains) losses on Futures (1)

13,544

 

12,579

 

(4,320

)

(2,799

)

2,210

 

Deal Expenses

 

 

3,782

 

1,372

 

2,095

 

Stock Compensation expense for retirement eligible awards

(144

)

1,533

 

99

 

 

 

Core Earnings

$

98,490

 

$

107,666

 

$

113,164

 

$

113,136

 

$

112,059

 

 

 

 

 

 

 

GAAP net income per basic common share

$

0.22

 

$

0.54

 

$

(0.63

)

$

0.79

 

$

0.58

 

Core earnings per basic common share (2)

$

0.53

 

$

0.58

 

$

0.61

 

$

0.60

 

$

0.60

 

(1)

Included in net realized gains (losses) on derivatives in the Consolidated Statements of Operations.

(2)

We note that core and taxable earnings will typically differ, and may materially differ, due to differences on realized gains and losses on investments and related hedges, credit loss recognition, timing differences in premium amortization, accretion of discounts, equity compensation and other items.

The following tables provide a summary of the Company’s MBS portfolio at June 30, 2019 and December 31, 2018.

 

June 30, 2019

 

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

$

2,264,168

 

$

54.25

 

$

83.00

 

5.1

%

19.4

%

Senior, interest-only

6,649,398

 

4.39

 

4.45

 

1.1

%

8.3

%

Subordinated

723,303

 

61.73

 

70.77

 

3.6

%

7.8

%

Subordinated, interest-only

213,940

 

4.54

 

5.75

 

1.2

%

16.3

%

Agency MBS

 

 

 

 

 

Residential pass-through

8,458,870

 

102.29

 

103.88

 

4.0

%

3.4

%

Commercial pass-through

3,036,622

 

101.92

 

105.93

 

3.6

%

3.5

%

Interest-only

2,795,851

 

5.49

 

5.40

 

1.1

%

5.5

%

(1) Bond Equivalent Yield at period end.

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

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

$

2,386,049

 

$

53.40

 

$

81.44

 

5.0

%

19.5

%

Senior, interest-only

5,667,198

 

5.06

 

4.50

 

1.2

%

8.4

%

Subordinated

394,037

 

56.60

 

70.16

 

4.0

%

9.9

%

Subordinated, interest-only

221,549

 

4.48

 

5.26

 

1.1

%

16.4

%

Agency MBS

 

 

 

 

 

Residential pass-through

8,984,249

 

102.47

 

102.12

 

4.0

%

3.6

%

Commercial pass-through

2,895,679

 

101.98

 

99.50

 

3.6

%

3.4

%

Interest-only

3,028,572

 

4.49

 

4.40

 

0.8

%

4.3

%

(1) Bond Equivalent Yield at period end.

 

 

 

 

At June 30, 2019 and December 31, 2018, the repurchase agreements collateralized by MBS had the following remaining maturities.

 

June 30, 2019

December 31, 2018

 

(dollars in thousands)

Overnight

$

42,249

 

$

 

1 to 29 days

4,981,306

 

6,326,232

 

30 to 59 days

6,711,006

 

4,620,656

 

60 to 89 days

510,500

 

1,504,695

 

90 to 119 days

405,762

 

169,244

 

Greater than or equal to 120 days

1,863,896

 

1,409,638

 

Total

$

14,514,719

 

$

14,030,465

 

The following table summarizes certain characteristics of our portfolio at June 30, 2019 and December 31, 2018.

 

June 30, 2019

December 31, 2018

Interest earning assets at period-end (1)

$

27,155,205

 

$

27,247,661

 

Interest bearing liabilities at period-end

$

22,540,936

 

$

22,645,796

 

GAAP Leverage at period-end

5.7:1

6.1:1

GAAP Leverage at period-end (recourse)

3.7:1

3.8:1

Portfolio Composition, at amortized cost

 

 

Non-Agency RMBS

5.6

%

4.7

%

Senior

2.8

%

2.8

%

Senior, interest only

1.1

%

1.1

%

Subordinated

1.7

%

0.8

%

Subordinated, interest only

0.0

%

0.0

%

RMBS transferred to consolidated VIEs

2.0

%

2.1

%

Agency MBS

46.4

%

46.7

%

Residential

33.7

%

35.0

%

Commercial

12.1

%

11.2

%

Interest-only

0.6

%

0.5

%

Loans held for investment

46.0

%

46.5

%

Fixed-rate percentage of portfolio

95.8

%

95.8

%

Adjustable-rate percentage of portfolio

4.2

%

4.2

%

(1) Excludes cash and cash equivalents.

Economic Net Interest Income

Our “Economic net interest income” is a non-GAAP financial measure, that equals interest income, less interest expense and realized losses on our interest rate swaps. Realized losses on our interest rate swaps are the periodic net settlement payments made or received. 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 Realized gains (losses) on derivatives in our Consolidated Statements of Operations and Comprehensive Income. Interest rate swaps are used to manage the increase in interest paid on repurchase 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 actual interest expense and net interest income. Where indicated, interest expense, including interest payments on interest rate swaps, is referred to as economic interest expense. Where indicated, net interest income reflecting interest payments on interest rate swaps, is referred to as economic net interest income.

The following table reconciles the GAAP and non-GAAP measurements reflected in the Management’s Discussion and Analysis of Financial Condition and Results of Operations.

 

GAAP
Interest
Income

 

GAAP
Interest
Expense

Net
Realized
(Gains)
Losses on
Interest
Rate Swaps

Economic
Interest
Expense

 

GAAP Net
Interest
Income

Net Realized
Gains (Losses)
on Interest
Rate Swaps

Other (1)

Economic
Net
Interest
Income

For the Quarter Ended June 30, 2019

$

339,914

 

 

$

198,110

 

$

(3,923

)

$

194,187

 

 

$

141,804

 

$

3,923

 

$

(2,237

)

$

143,490

 

For the Quarter Ended March 31, 2019

$

350,389

 

 

$

202,950

 

$

(5,462

)

$

197,488

 

 

$

147,439

 

$

5,462

 

$

(1,571

)

$

151,330

 

For the Quarter Ended December 31, 2018

$

348,033

 

 

$

193,920

 

$

364

 

$

194,284

 

 

$

154,113

 

$

(364

)

$

(140

)

$

153,609

 

For the Quarter Ended September 30, 2018

$

321,715

 

 

$

174,671

 

$

(242

)

$

174,429

 

 

$

147,044

 

$

242

 

$

321

 

$

147,607

 

For the Quarter Ended June 30, 2018

$

306,436

 

 

$

161,266

 

$

(1,246

)

$

160,020

 

 

$

145,170

 

$

1,246

 

$

436

 

$

146,852

 

(1) Primarily interest expense/(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

 

June 30, 2019

 

June 30, 2018

 

(dollars in thousands)

 

(dollars in thousands)

 

Average
Balance

Interest

Average
Yield/Cost

 

Average
Balance

Interest

Average
Yield/Cost

Assets:

 

 

 

 

 

 

 

Interest-earning assets (1):

 

 

 

 

 

 

 

Agency MBS

$

11,004,763

 

$

93,225

 

3.4

%

 

$

5,149,790

 

$

43,328

 

3.4

%

Non-Agency RMBS

1,400,506

 

35,701

 

10.2

%

 

1,146,623

 

27,133

 

9.5

%

Non-Agency RMBS transferred to consolidated VIEs

517,945

 

38,917

 

30.1

%

 

788,432

 

49,209

 

25.0

%

Residential mortgage loans held for investment

11,906,654

 

169,834

 

5.7

%

 

13,041,746

 

187,202

 

5.7

%

Total

$

24,829,868

 

$

337,677

 

5.4

%

 

$

20,126,591

 

$

306,872

 

6.1

%

 

 

 

 

 

 

 

 

Liabilities and stockholders' equity:

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

Repurchase agreements collateralized by:

 

 

 

 

 

 

 

Agency MBS (2)

$

10,463,245

 

$

66,748

 

2.6

%

 

$

4,780,044

 

$

20,661

 

1.7

%

Non-Agency RMBS (2)

750,018

 

6,968

 

3.7

%

 

371,968

 

3,391

 

3.6

%

Re-REMIC repurchase agreements

534,978

 

6,187

 

4.6

%

 

756,931

 

7,780

 

4.1

%

RMBS from loan securitizations

2,892,756

 

26,755

 

3.7

%

 

2,618,381

 

28,681

 

4.4

%

Securitized debt, collateralized by Non-Agency RMBS

149,896

 

1,921

 

5.1

%

 

187,355

 

2,637

 

5.6

%

Securitized debt, collateralized by loans

7,793,608

 

85,608

 

4.4

%

 

9,168,464

 

96,870

 

4.2

%

Total

$

22,584,501

 

$

194,187

 

3.4

%

 

$

17,883,143

 

$

160,020

 

3.6

%

 

 

 

 

 

 

 

 

Economic net interest income/net interest rate spread

 

$

143,490

 

2.0

%

 

 

$

146,852

 

2.5

%

 

 

 

 

 

 

 

 

Net interest-earning assets/net interest margin

$

2,245,367

 

 

2.3

%

 

$

2,243,448

 

 

2.9

%

 

 

 

 

 

 

 

 

Ratio of interest-earning assets to interest bearing liabilities

1.10

 

 

 

 

1.13

 

 

 

(1) Interest-earning assets at amortized cost

(2) Interest includes net cash paid/received on swaps

The table below shows our Net Income and Economic Net Interest Income as a percentage of average stockholders' equity and Core Earnings 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 Core Earnings are non-GAAP measures as defined in previous sections.

 

Return on
Average Equity

Economic Net
Interest
Income/Average
Equity *

Core
Earnings/Average
Common Equity

 

(Ratios have been annualized)

For the Quarter Ended June 30, 2019

5.93

%

14.49

%

13.02

%

For the Quarter Ended March 31, 2019

12.34

%

15.81

%

14.16

%

For the Quarter Ended December 31, 2018

(10.80

)%

16.13

%

14.20

%

For the Quarter Ended September 30, 2018

16.64

%

15.61

%

14.05

%

For the Quarter Ended June 30, 2018

12.91

%

16.05

%

13.79

%

* Includes effect of realized losses on interest rate swaps.

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

 

For the Quarters Ended

Accretable Discount (Net of Premiums)

June 30, 2019

March 31, 2019

December 31, 2018

September 30, 2018

June 30, 2018

 

(dollars in thousands)

Balance, beginning of period

$

485,040

 

$

505,763

 

$

539,020

 

$

540,269

 

$

555,444

 

Accretion of discount

(35,964

)

(35,551

)

(36,287

)

(35,184

)

(38,110

)

Purchases

48,736

 

6,638

 

4,589

 

1,966

 

3,098

 

Sales and deconsolidation

409

 

127

 

(625

)

(986

)

(6,439

)

Transfers from/(to) credit reserve, net

15,874

 

8,063

 

(934

)

32,955

 

26,276

 

Balance, end of period

$

514,095

 

$

485,040

 

$

505,763

 

$

539,020

 

$

540,269

 

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, under the caption “Risk Factors.” Factors that could cause actual results to differ include, but are not limited to: the state of credit markets and general economic conditions; changes in interest rates and the market value of our assets; the rates of default or decreased recovery on the mortgages underlying our target assets; the occurrence, extent and timing of credit losses within our portfolio; the credit risk in our underlying assets; declines in home prices; our ability to establish, adjust and maintain appropriate hedges for the risks in our portfolio; the availability and cost of our target assets; our ability to borrow to finance our assets and the associated costs; changes in the competitive landscape within our industry; our ability to manage various operational risks and costs associated with our business; interruptions in or impairments to our communications and information technology systems; our ability to acquire residential mortgage loans and successfully securitize the residential mortgage loans we acquire; our ability to oversee our third party sub-servicers; the impact of any deficiencies in the servicing or foreclosure practices of third parties and related delays in the foreclosure process; our exposure to legal and regulatory claims; legislative and regulatory actions affecting our business; the impact of new or modified government mortgage refinance or principal reduction programs; our ability to maintain our REIT qualification; and limitations imposed on our business due to our REIT status and our exempt status under the Investment Company Act of 1940.

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.

Contacts

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

Contacts

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