Chimera Investment(US:CIM)2025-11-06 11:45Financial Performance - GAAP net loss of $0.27 per diluted common share for Q3 2025, with GAAP net income of $1.67 per diluted common share for the nine months ended September 30, 2025[3] - Net (loss) income available to common shareholders was $(21.99) million for Q3 2025, compared to $113.67 million in Q3 2024[12] - Comprehensive (loss) income available to common stock shareholders was $(25.00) million for Q3 2025, compared to $123.22 million in Q3 2024[15] - GAAP net income available to common stockholders for Q3 2025 was $(21,997) thousand, compared to $14,024 thousand in Q2 2025 and $145,940 thousand in Q1 2025[22] - Earnings available for distribution for Q3 2025 was $30,255 thousand, a decrease from $32,111 thousand in Q2 2025 and $33,526 thousand in Q1 2025[22] - The company reported a GAAP net income (loss) per diluted common share of $(0.27) for Q3 2025, compared to $0.17 in Q2 2025 and $1.77 in Q1 2025[22] Assets and Liabilities - Total assets increased to $15.12 billion as of September 30, 2025, compared to $13.12 billion at December 31, 2024[10] - Total liabilities increased to $12.54 billion as of September 30, 2025, from $10.59 billion at December 31, 2024[10] - Cash and cash equivalents rose to $491.48 million from $83.99 million at the end of 2024[10] - Total interest-earning assets at period-end increased to $14,111,113 thousand as of September 30, 2025, up from $12,780,065 thousand at December 31, 2024[30] - Total interest-bearing liabilities at period-end rose to $12,218,502 thousand as of September 30, 2025, compared to $10,014,759 thousand at December 31, 2024[30] Acquisition - Completed the acquisition of HomeXpress on October 1, 2025, for $240 million in cash, including an estimated adjusted book value of $120 million and a premium of $120 million[3] - The company completed the acquisition of HomeXpress, which is expected to impact future earnings positively[41] Income and Yield - Net interest income for Q3 2025 was $65.01 million, a slight decrease from $66.45 million in Q3 2024[12] - Economic net interest income for the quarter ended September 30, 2025, was $68,558,000, reflecting a net interest rate spread of 1.4%[34] - The economic average cost of funds was 4.5% for the quarter ended September 30, 2025[36] - The weighted average yield at period-end for Non-Agency RMBS senior class was 5.7% as of September 30, 2025, consistent with the previous quarter[25] Portfolio Composition - Loans held for investment represented 73.5% of the portfolio composition as of September 30, 2025[31] - The fixed-rate percentage of the portfolio was 86.0% as of September 30, 2025, compared to 87.9% at the end of December 2024[31] - Non-Agency RMBS portfolio's accretable discount balance decreased to $89,297,000 by the end of September 2025[40] Financial Metrics - GAAP book value of $20.24 per common share at September 30, 2025, with an economic return of (1.4)% for the quarter and 8.3% for the nine months[3] - The company's return on average equity for the quarter ended September 30, 2025, was (0.09)%[39] - Average interest-earning assets increased to $13,954,447,000 with a yield of 5.9% for the quarter ended September 30, 2025[36] - The average debt balance for the quarter ended September 30, 2025, was $12,278,733,000[36] Regulatory and Cautionary Statements - The company plans to maintain its REIT qualification by distributing at least 90% of its REIT taxable income annually[20] - Earnings available for distribution is a key metric used by the Board of Directors to determine dividends, alongside other metrics such as REIT taxable income and cash generated from the portfolio[20] - Chimera cautions readers not to place undue reliance on forward-looking statements, which are only valid as of the date made[42] - Financial information in the press release is based on Company data available at the time and may not have been audited[43]