Chimera Investment Corporation reported its financial results for the third quarter of 2025, revealing a net loss of $580,000, or $(0.27) per share, compared to a net income of $136.5 million, or $1.41 per share, in the same quarter of the previous year. For the nine months ended September 30, 2025, the company recorded a net income of $202.2 million, down from $322.6 million in the prior year. The decline in profitability was attributed to a decrease in unrealized gains on financial instruments at fair value, increased transaction expenses related to the acquisition of HomeXpress, and higher compensation costs due to severance payments.
Total revenue for the quarter was $65 million, a slight decrease from $66 million in the previous quarter, while interest income rose to $209.1 million, up from $201.3 million. Interest expense also increased to $144.1 million, reflecting higher borrowings to finance the purchase of Agency RMBS. The company’s total assets grew to approximately $15.1 billion as of September 30, 2025, compared to $13.1 billion at the end of 2024, driven by significant investments in Agency MBS and loans held for investment.
Chimera's strategic developments included the acquisition of HomeXpress Mortgage Corp, which closed on October 1, 2025, for a total consideration of $240 million, comprising cash and stock. This acquisition is expected to enhance the company's capabilities in the Non-QM mortgage loan origination market. Additionally, the company issued $120 million in senior notes due 2030 during the quarter, further diversifying its capital structure.
Operationally, the company reported a total of 96,917 loans held for investment, with a weighted average FICO score of 668 and a weighted average loan-to-value ratio of 77.7%. The company also noted an increase in its allowance for credit losses, which rose to $38.3 million, reflecting a deterioration in cash flows on certain investments. The company’s leverage ratio increased to 4.8:1, up from 4.0:1 at the end of 2024, indicating a higher level of borrowing to finance its investments.
Looking ahead, Chimera Investment Corporation aims to maintain flexibility in its investment strategy while navigating ongoing market uncertainties. The company plans to continue diversifying its portfolio and exploring opportunities to acquire mortgage servicing rights, which are expected to provide stable cash flows and mitigate risks associated with interest rate fluctuations. The company declared a dividend of $0.37 per common share for the third quarter, reflecting its commitment to returning value to shareholders despite the recent challenges.
About CHIMERA INVESTMENT CORP
Chimera Investment Corporation is a publicly traded real estate investment trust (REIT) specializing in investing in diversified residential mortgage assets, including reperforming loans, non-agency and agency mortgage-backed securities, and related real estate assets. It generates income through mortgage portfolio yields and third-party investment management fees. The company securitizes mortgage loans, retains subordinate securities, and employs leverage and risk management strategies to optimize risk-adjusted returns for institutional investors and shareholders.
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