CHIMERA INVESTMENT CORPORATION REPORTS FOURTH QUARTER AND FULL YEAR 2025 EARNINGS

NEW YORK--( BUSINESS WIRE)--Chimera Investment Corporation (NYSE:CIM) today announced its financial results for the fourth quarter and full year ended December 31, 2025.

Fourth Quarter 2025 Financial Highlights:

Full Year 2025 Financial Highlights:

“We’re extremely pleased with our fourth-quarter results and the meaningful increase in our dividend,” said Phillip J. Kardis II, President and CEO. “What you’re seeing now is the early return on the transformation we initiated in December 2024—focused, deliberate, and built for the long-term."

(1) Earnings available for distribution per adjusted diluted common share is a non-GAAP measure. See additional discussion on page 6.

(2) Our economic return is measured by the change in GAAP book value per common share plus common stock dividend.

Fourth Quarter and Full Year 2025 Earnings Call

Chimera Investment Corporation will host a conference call and live audio webcast to discuss the results on Wednesday, February 11, 2026 at 8:30 AM ET.

Call-in Number:

Conference Call Replay:

Other Information

Chimera is a diversified real estate company that invests in, originates, and manages primarily residential real estate assets. The assets we may invest in and manage, through our wholly-owned subsidiary Palisades Advisory Services, LLC, for others include residential mortgage loans, Non-Agency RMBS, Agency RMBS, BPLs (including RTLs) and investor loans, MSRs and other real estate-related assets such as Agency CMBS, junior liens and HELOCs, equity appreciation rights, and reverse mortgages. Also, through our wholly-owned subsidiary, HomeXpress Mortgage Corp., we originate non-QM residential mortgage loans (both consumer and business purpose) as well as QM residential mortgage loans. Chimera was incorporated in Maryland on June 1, 2007 and started trading on the NYSE in November 2007, and is structured as an internally managed real estate investment trust, or REIT, for U.S. federal income tax purposes.

CHIMERA INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

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

(Unaudited)

December 31, 2025

December 31, 2024

Assets:

Cash and cash equivalents

278,582

83,998

Non-Agency RMBS, at fair value (net of allowance for credit losses of $43 million and $28 million, respectively)

817,280

1,064,169

Agency MBS, at fair value

3,463,485

519,218

Loans held for investment, at fair value

9,803,615

11,196,678

Loans held-for-sale, at fair value

896,117

—

Accrued interest receivable

78,691

81,386

Other assets

408,291

170,924

Interests in MSR financing receivables

37,294

—

Derivatives, at fair value, net

25,187

117

Total assets (1)

15,808,542

13,116,490

Liabilities:

Secured financing agreements ($7.3 billion and $4.1 billion pledged as collateral, respectively, and includes $299 million and $319 million at fair value, respectively)

6,031,182

2,824,371

Securitized debt, collateralized by Non-Agency RMBS ($210 million and $229 million pledged as collateral, respectively)

66,579

71,247

Securitized debt at fair value, collateralized by Loans held for investment ($9.4 billion and $10.2 billion pledged as collateral, respectively)

6,721,302

6,984,495

Long term debt

251,528

134,646

Payable for investments purchased

3,267

454,730

Accrued interest payable

43,032

41,472

Dividends payable

34,891

34,265

Accounts payable and other liabilities

82,308

45,075

Derivatives, at fair value, net

1,759

—

Total liabilities (1)

13,235,848

10,590,301

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)

8.00% Series B cumulative redeemable: 13,000,000 shares issued and outstanding, respectively ($325,000 liquidation preference)

130

7.75% Series C cumulative redeemable: 10,400,000 shares issued and outstanding, respectively ($260,000 liquidation preference)

104

8.00% Series D cumulative redeemable: 8,000,000 shares issued and outstanding, respectively ($200,000 liquidation preference)

Common stock: par value $0.01 per share; 166,666,667 shares authorized, 83,402,145 and 80,922,221 shares issued and outstanding, respectively

834

809

Additional paid-in-capital

4,429,009

4,390,516

Accumulated other comprehensive income

146,295

159,449

Cumulative earnings

4,571,610

4,341,111

Cumulative distributions to stockholders

(6,575,426

)

(6,366,068

)

Total stockholders' equity

2,572,694

2,526,189

Total liabilities and stockholders' equity

15,808,542

13,116,490

(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 December 31, 2025, and December 31, 2024, total assets of consolidated VIEs were $9,215,343 and $9,970,094, respectively, and total liabilities of consolidated VIEs were $6,533,891 and $6,766,505, respectively.

CHIMERA INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

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

(Unaudited)

For the Years Ended

December 31, 2025

December 31, 2024

December 31, 2023

Net interest income:

Interest income (1)

821,343

760,950

772,904

Interest expense (2)

554,924

496,274

509,541

Net interest income

266,419

264,676

263,363

Increase in provision for credit losses

15,705

9,838

11,371

Other income (losses):

Net unrealized gains (losses) on derivatives

10,371

2,963

(6,411

)

Realized losses on derivatives

(33,352

)

(21,540

)

(40,957

)

Periodic interest on derivatives, net

20,375

23,780

17,167

Net gains (losses) on derivatives

(2,606

)

5,203

(30,201

)

Investment management and advisory fees

35,382

2,710

—

Interest income from investment in MSR financing receivables (3)

520

—

Net unrealized gains on financial instruments at fair value

81,735

10,811

34,373

Net realized losses on sales of investments

(23,192

)

(5,219

)

(31,234

)

Gains on extinguishment of debt

2,142

—

3,875

Other investment gains

5,733

9,543

1,091

Gain on origination and sale of loans, net

20,590

—

Total other income (losses)

120,304

23,048

(22,096

)

Other expenses:

Compensation and benefits (4)

56,702

41,364

30,570

General and administrative expenses

29,995

23,201

25,117

Servicing and asset manager fees

27,737

29,795

32,624

Amortization of intangibles and depreciation expenses

7,183

321

—

Transaction expenses

16,634

7,091

15,379

Total other expenses

138,251

101,772

103,690

Income before income taxes

232,767

176,114

126,206

Income tax expense

2,268

102

Net income

230,499

176,065

126,104

Dividends on preferred stock

86,031

85,736

73,750

Net income available to common shareholders

144,468

90,329

52,354

Net income per share available to common shareholders:

Basic

1.76

1.12

0.68

Diluted

1.72

1.10

0.68

Weighted average number of common shares outstanding:

Basic

82,175,111

80,976,745

76,685,785

Diluted

83,942,704

82,157,622

77,539,289

(1) Includes interest income of consolidated VIEs of $557,046, $640,499 and $593,384 for the years ended December 31, 2025, 2024, and 2023 respectively.

(2) Includes interest expense of consolidated VIEs of $283,722, $293,509, and $282,542 and for the years ended December 31, 2025, 2024, and 2023, respectively.

(3) Includes interest income from investment in MSR financing receivables of a consolidated VIE of $709, $0 and $0 for the years ended December 31, 2025, 2024 and 2023, respectively.

(4) Includes a related-party, non-cash imputed compensation expense from the Palisades Acquisition of $1,364, $10,296, and $0 for the years ended December 31, 2025, 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 Years Ended

December 31, 2025

December 31, 2024

December 31, 2023

Comprehensive income (loss):

Net income

230,499

176,065

126,104

Other comprehensive loss:

Unrealized losses on available-for-sale securities, net

(20,436

)

(26,219

)

(44,990

)

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

7,282

—

1,313

Other comprehensive loss

(13,154

)

(26,219

)

(43,677

)

Comprehensive income before preferred stock dividends

217,344

149,846

82,427

Dividends on preferred stock

86,031

85,736

73,750

Comprehensive income available to common stock shareholders

131,313

64,110

8,677

Earnings available for distribution

Earnings available for distribution is a non-GAAP measure and is defined as GAAP net income (loss) excluding (i) unrealized gains or losses on financial instruments carried at fair value with changes in fair value recorded in earnings, (ii) realized gains or losses on the sales of investments, (iii) gains or losses on the extinguishment of debt, (iv) changes in the provision for credit losses, (v) unrealized gains or losses on derivatives, (vi) realized gains or losses on derivatives, (vii) transaction expenses, (viii) stock compensation expenses for retirement eligible awards, (ix) amortization of intangibles and depreciation expenses, net of any tax impact (x) non-cash imputed compensation expense related to business acquisitions, and (xi) other gains and losses on equity investments.

Non-cash imputed compensation expense reflects the portion of the consideration paid in the Palisades Acquisition that pursuant to the seller’s contractual arrangements is distributable to the seller’s legacy employees (who are now our employees) and that for GAAP purposes is recorded as non-cash imputed compensation expense with an offsetting entry recorded as non-cash contribution from a related party to our shareholder’s equity. The excluded amounts do not include any normal, recurring compensation paid to our employees.

Transaction expenses are primarily comprised of costs only incurred at the time of execution of our securitizations, certain structured secured financing agreements, and business combination transactions and include costs such as underwriting fees, legal fees, diligence fees, accounting 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 group’s 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 issuance 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.

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. To maintain our qualification as a REIT, U.S. federal income tax law generally requires that we distribute at least 90% of our REIT taxable income (subject to certain adjustments) annually. Earnings available for distribution, however, is different than REIT taxable income. For example, differences between Earnings available for distribution and REIT taxable income generally may result from whether the REIT uses mark-to-market accounting for GAAP purposes, accretion of market discount or OID and amortization of premium, and differences in the treatment of securitizations for GAAP and tax purposes, among other items. Further, REIT taxable income generally does not include earnings of our domestic TRSs unless such income is distributed from current or accumulated earnings and profits. The determination of whether we have met the requirement to distribute at least 90% of our annual REIT taxable income is not based on Earnings available for distribution and 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 helps us and investors evaluate our financial performance period over period without the impact of certain non-recurring transactions. Therefore, Earnings available for distribution should not be viewed in isolation and is not a substitute for or superior to 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

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

December 31, 2024

(dollars in thousands, except per share data)

GAAP net income (loss) available to common stockholders

6,501

(21,997

)

14,024

145,940

(168,275

)

Adjustments (1):

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

17,138

36,995

(6,971

)

(128,895

)

181,197

Net realized (gains) losses on sales of investments

23,268

(1,991

)

1,915

—

1,468

Gains on extinguishment of debt

(20

)

—

(2,122

)

—

Increase in provision for credit losses

5,322

2,587

4,409

3,387

4,448

Net unrealized (gains) losses on derivatives

(27,303

)

7,907

2,554

6,469

(276

)

Realized (gains) losses on derivatives

17,495

(2,015

)

17,954

(82

)

(641

)

Transaction expenses

625

9,931

390

5,688

4,707

Stock Compensation expense for retirement eligible awards

(449

)

(506

)

(501

)

1,432

(307

)

Amortization of intangibles and depreciation expenses (2)

4,332

948

949

951

321

HomeXpress acquisition intangible amortization tax impact (3)

(837

)

—

Non-cash imputed compensation related to business acquisition

341

10,296

Other investment (gains) losses

(1,252

)

(1,945

)

(2,953

)

417

(2,490

)

Earnings available for distribution

45,161

30,255

32,111

33,526

30,448

GAAP net income (loss) per diluted common share

0.08

(0.27

)

0.17

1.77

(2.07

)

Earnings available for distribution per adjusted diluted common share

0.53

0.37

0.39

0.41

0.37

(1) As a result of the business combinations, we updated the determination of earnings available for distribution to exclude non-recurring acquisition-related transaction expenses, non-cash amortization of intangibles and depreciation expenses, and non-cash imputed compensation expenses. These expenses are excluded as they relate to our business combinations and are not directly related to our income generating activities.

(2) Non-cash amortization of intangibles and depreciation expenses related to acquisitions.

(3) Tax impact on non-cash amortization of intangibles and depreciation expenses related to business combinations.

In 2025, we reevaluated our composition and the number of our reportable segments based on changes in the significance of certain business activities, including the HomeXpress Acquisition. As a result of this reevaluation, we report as two reportable segments: (i) Investment Portfolio, and (ii) Residential Origination. The Investment Portfolio segment consists of the Company’s investments and third-party advisory services activities. The Residential Origination segment consists of the stand-alone mortgage origination business of HomeXpress that originates consumer Non-QM, investor business purpose, and other Non-Agency and Agency mortgage loan products.

Segment Results of Operations

The following present, for each reportable segment, revenues, the measure of segment profit or loss, and significant segment expenses. Segment results are prepared on the same basis as the Company’s consolidated financial statements and are reconciled to consolidated amounts below:

For the Quarter Ended

December 31, 2025

(dollars in thousands)

(Unaudited)

Investment Portfolio

Residential Origination

Total

Net interest income:

Interest income

207,369

12,959

220,328

Interest expense

144,471

9,679

154,150

Net interest income

62,898

3,280

66,178

Increase in provision for credit losses

5,322

—

5,322

Other income (losses):

Net unrealized gains (losses) on derivatives

27,303

—

27,303

Realized gains (losses) derivatives

(17,495

)

—

(17,495

)

Periodic interest on derivatives, net

5,422

—

5,422

Net gains (losses) on derivatives

15,230

—

15,230

Investment management and advisory fees

9,128

—

9,128

Interest income from investment in MSR financing receivables

—

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

(17,138

)

—

(17,138

)

Net realized gains (losses) on sales of investments

(23,268

)

—

(23,268

)

Gains on extinguishment of debt

—

Other investment gains (losses)

1,252

—

1,252

Gain on origination and sale of loans, net

—

20,590

Total other income (losses)

(14,756

)

20,590

5,834

Other expenses:

Compensation and benefits

7,990

10,212

18,202

General and administrative expenses

7,138

2,199

9,337

Servicing and asset manager fees

6,011

—

6,011

Amortization of intangibles and depreciation expenses

914

3,418

4,332

Transaction expenses

625

—

625

Total other expenses

22,678

15,829

38,507

Income before income taxes

20,142

8,041

28,183

Income tax expense (benefit)

304

(453

)

(149

)

Net income

19,838

8,494

28,332

Dividends on preferred stock

21,831

—

21,831

Net income (loss) available to common shareholders

(1,993

)

8,494

6,501

For the Year Ended

December 31, 2025

(dollars in thousands)

(Unaudited)

Investment Portfolio

Residential Origination

Total

Net interest income:

Interest income

808,384

12,959

821,343

Interest expense

545,245

9,679

554,924

Net interest income

263,139

3,280

266,419

Increase in provision for credit losses

15,705

—

15,705

Other income (losses):

Net unrealized gains (losses) on derivatives

10,371

—

10,371

Realized losses on derivatives

(33,352

)

—

(33,352

)

Periodic interest on derivatives, net

20,375

—

20,375

Net gains (losses) on derivatives

(2,606

)

—

(2,606

)

Investment management and advisory fees

35,382

—

35,382

Interest income from investment in MSR financing receivables

520

—

520

Net unrealized gains on financial instruments at fair value

81,735

—

81,735

Net realized losses on sales of investments

(23,192

)

—

(23,192

)

Gains on extinguishment of debt

2,142

—

2,142

Other investment gains

5,733

—

5,733

Gain on origination and sale of loans, net

—

20,590

Total other income (losses)

99,714

20,590

120,304

Other expenses:

Compensation and benefits

46,490

10,212

56,702

General and administrative expenses

27,796

2,199

29,995

Servicing and asset manager fees

27,737

—

27,737

Amortization of intangibles and depreciation expenses

3,765

3,418

7,183

Transaction expenses

16,634

—

16,634

Total other expenses

122,422

15,829

138,251

Income before income taxes

224,726

8,041

232,767

Income tax expense (benefit)

2,721

(453

)

2,268

Net income

222,005

8,494

230,499

Dividends on preferred stock

86,031

—

86,031

Net income available to common shareholders

135,974

8,494

144,468

Investment Portfolio Segment

The following tables provide a summary of the Company’s MBS portfolio, within our Investment Portfolio Segment, at December 31, 2025 and December 31, 2024.

December 31, 2025

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

852,887

42.78

59.21

5.7

20.3

Subordinated

453,269

48.99

51.47

4.2

9.3

Interest-only

2,428,976

6.03

3.25

0.8

4.4

Agency RMBS

Pass-through

3,096,299

97.79

99.52

5.0

5.3

CMO

330,871

99.94

100.31

5.1

Interest-only

367,866

5.07

4.04

0.6

6.5

Agency CMBS

Project loans

39,693

101.52

81.98

3.4

3.3

Interest-only

123,375

2.67

2.11

0.7

13.0

(1) Bond Equivalent Yield at period end.

December 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

1,010,128

45.11

60.83

5.7

17.6

Subordinated

648,977

59.18

57.99

4.5

8.0

Interest-only

2,644,741

5.81

2.77

0.7

6.6

Agency RMBS

CMO

464,640

99.97

99.36

5.8

Interest-only

380,311

5.15

4.41

0.7

6.9

Agency CMBS

Project loans

40,882

101.51

84.07

3.5

3.4

Interest-only

449,437

1.36

1.43

0.5

8.9

(1) Bond Equivalent Yield at period end.

At December 31, 2025 and December 31, 2024, the secured financing agreements collateralized by MBS and Loans held for investment had the following remaining maturities and borrowing rates.

December 31, 2025

December 31, 2024

(dollars in thousands)

Principal (1)

Weighted Average Borrowing Rates

Range of Borrowing Rates

Principal

Weighted Average Borrowing Rates

Range of Borrowing Rates

Overnight

—

N/A

—

N/A

1 to 29 days

2,630,804

4.15

3.93% - 6.76%

642,358

5.61

4.66% - 7.52%

30 to 59 days

781,654

4.86

3.94% - 6.54%

959,559

7.79

5.34% - 12.50%

60 to 89 days

722,995

4.75

3.90% - 6.54%

318,750

5.58

4.87% - 7.02%

90 to 119 days

263,081

6.78

5.37% - 6.97%

51,416

6.38

5.51% - 6.77%

120 to 180 days

96,153

5.47

5.36% - 6.54%

123,072

6.15

5.82% - 6.77%

180 days to 1 year

810,443

6.03

4.77% - 8.38%

409,760

6.79

5.80% - 7.49%

1 to 2 years

733,206

6.79

4.98% - 8.15%

—

N/A

2 to 3 years

—

—% - —%

337,245

5.02

5.02% - 5.02%

Total

6,038,336

5.02

2,842,160

6.48

(1) The values for secured financing agreements in the table above is net of $271 thousand of deferred financing costs as of December 31, 2025.

Investment Portfolio Segment

December 31, 2025

December 31, 2024

December 31, 2025

December 31, 2024

Portfolio Composition

Amortized Cost

Fair Value

Non-Agency RMBS

5.5

7.9

5.8

8.3

Senior

2.9

3.7

3.6

4.8

Subordinated

1.6

3.0

1.6

2.9

Interest-only

1.0

1.2

0.6

Agency RMBS

24.1

3.7

24.2

3.7

Pass-through

21.6

—

21.8

—

CMO

2.4

3.6

2.3

3.6

Interest-only

0.1

Agency CMBS

0.3

0.4

0.2

0.4

Project loans

0.3

0.2

0.3

Interest-only

0.0

0.1

Loans held for investment

69.8

88.0

69.5

87.6

Interests in MSR financing receivables

0.3

N/A

0.3

N/A

Fixed-rate percentage of portfolio

86.5

87.9

86.1

87.3

Adjustable-rate percentage of portfolio

13.5

12.1

13.9

12.7

The following table summarizes certain characteristics of our consolidated assets and liabilities at December 31, 2025 and December 31, 2024.

December 31, 2025

December 31, 2024

(dollars in thousands)

Interest earning assets at period-end (1)

15,017,791

12,780,065

Interest bearing liabilities at period-end

13,070,591

10,014,759

GAAP Leverage at period-end

5.1:1

4.0:1

GAAP Leverage at period-end (recourse)

2.4:1

1.2:1

(1) Excludes cash and cash equivalents.

Economic Net Interest Income - Investment Portfolio Segment

Our Economic net interest income for our Investment Portfolio Segment is a non-GAAP financial measure that equals GAAP net interest income adjusted for net periodic interest on derivatives, interest income from Residential Origination segment and interest income from investment in MSR financing receivables, and excludes interest earned on cash and interest expense from Residential Origination segment. 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 derivatives, which is presented as a part of Net gains (losses) on derivatives in our Consolidated Statements of Operations. Interest rate swaps, Interest rate cap and Swap futures 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 derivatives 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 on derivatives 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

Interest Income on Mortgage Loan Origination

Other (1)

Economic Interest

Income

GAAP

Interest

Expense

Periodic Interest On Derivatives, net & Interest Expense on Mortgage Loan Origination

Economic Interest

Expense

GAAP Net Interest

Income

Periodic Interest On Derivatives, net

Other (1)

Net Interest Income on Mortgage Loan Origination

Economic

Net

Interest

Income

For the Year Ended December 31, 2025

821,343

(12,355

)

(8,796

)

800,192

554,924

(30,054

)

524,870

266,419

20,375

(8,796

)

(2,676

)

275,322

For the Year Ended December 31, 2024

760,950

—

(7,352

)

753,598

496,274

(23,780

)

472,494

264,676

23,780

(7,352

)

—

281,104

For the Year Ended December 31, 2023

772,904

—

(9,871

)

763,033

509,541

(17,167

)

492,374

263,363

17,167

(9,871

)

—

270,659

For the Quarter Ended December 31, 2025

220,328

(12,355

)

(3,540

)

204,433

154,150

(15,101

)

139,049

66,178

5,422

(3,540

)

(2,676

)

65,384

For the Quarter Ended September 30, 2025

209,100

—

(2,204

)

206,896

144,089

(5,751

)

138,338

65,011

5,751

(2,204

)

—

68,558

For the Quarter Ended June 30, 2025

201,297

—

(2,002

)

199,295

135,287

(5,067

)

130,220

66,010

5,067

(2,002

)

—

69,075

For the Quarter Ended March 31, 2025

190,616

—

(1,050

)

189,566

121,397

(4,135

)

117,262

69,219

4,135

(1,050

)

—

72,304

(1) Primarily interest income on cash and cash equivalents from our Investment Portfolio and Residential Origination segments and interest income from investment in MSR financing receivables.

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 Quarters Ended

December 31, 2025

September 30, 2025

December 31, 2024

(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)(4)(6):

Agency RMBS (3)

2,975,920

40,159

5.4

2,520,146

34,108

5.9

19,136

303

6.3

Agency CMBS

40,391

417

4.1

41,062

464

4.5

105,270

1,138

4.3

Non-Agency RMBS (3)

763,957

24,735

12.9

872,037

27,872

12.5

950,366

29,611

12.5

Loans held for investment

10,027,070

139,102

5.5

10,482,981

143,952

5.5

11,882,662

158,501

5.3

MSR (5)

38,221

0.2

38,221

500

5.2

—

Total

13,845,559

204,433

5.9

13,954,447

206,896

5.9

12,957,434

189,553

5.9

Liabilities and stockholders' equity:

Interest-bearing liabilities (2)(4)(6):

Secured financing agreements collateralized by:

Agency RMBS (3)

2,913,324

27,523

4.3

2,450,389

24,160

4.7

—

Agency CMBS

30,899

329

4.3

30,704

355

4.6

75,847

1,071

5.6

Non-Agency RMBS (3)

491,472

6,217

5.1

565,871

7,378

5.2

710,550

13,561

7.6

Loans held for investment

1,533,349

26,141

6.8

1,752,317

30,214

6.9

1,761,188

30,298

6.9

Securitized Debt

7,177,468

72,474

4.0

7,321,240

72,285

3.9

8,422,017

76,327

3.6

Long Term Debt (3)

259,750

6,365

9.8

158,212

3,946

10.0

—

Total

12,406,262

139,049

4.5

12,278,733

138,338

4.5

10,969,602

121,257

4.4

Economic net interest income/net interest rate spread

65,384

1.4

68,558

1.4

68,296

1.5

Net interest-earning assets/net interest margin

1,439,297

1.9

1,675,714

2.0

1,987,832

2.1

Ratio of interest-earning assets to interest bearing liabilities

1.12

1.14

1.18

(1) Interest-earning assets at amortized cost.

(2) Interest includes periodic interest on derivatives, net.

(3) These amounts have been adjusted to reflect the daily outstanding averages for which the financial instruments were held during the period.

(5) The average balance amount represents committed capital by the Company during the period.

The table below shows our Net income (loss) 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, and Average Tangible Common 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. Tangible Common Equity is a non-GAAP measure and is defined below.

Return on Average Equity

Economic Net Interest Income/Average Equity (1)

Earnings available for distribution/Average Common Equity

Earnings available for distribution/Average Tangible Common Equity

(Ratios have been annualized)

For the Year Ended December 31, 2025

8.91

10.88

8.51

8.91

For the Year Ended December 31, 2024

6.72

10.72

7.16

7.20

For the Year Ended December 31, 2023

4.87

10.45

7.19

For the Quarter Ended December 31, 2025

4.41

10.75

11.00

11.91

For the Quarter Ended September 30, 2025

(0.09

10.56

7.26

7.44

For the Quarter Ended June 30, 2025

5.38

10.49

7.54

7.72

For the Quarter Ended March 31, 2025

25.89

11.19

8.10

8.32

(1) Average equity represents equity allocated to our Investment Portfolio Segment.

Tangible Common Equity is a non-GAAP measure and is defined as Total stockholders' equity available to common stockholders less intangible assets and goodwill related to the business acquisitions. We believe that this measure helps our management and investors understand our capital adequacy and changes from period to period in our common stockholders' equity exclusive of changes of intangible assets. The following table presents a reconciliation of Total Stockholders’ Equity to Tangible Common Equity as of December 31, 2025.

For the Quarters Ended

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

December 31, 2024

(dollars in thousands)

Total stockholders' equity

2,572,694

2,571,238

2,624,530

2,644,064

2,526,189

Less: Preferred stock

(930,000

)

(930,000

)

(930,000

)

(930,000

)

(930,000

)

Total stockholders' equity available to common stockholders

1,642,694

1,641,238

1,694,530

1,714,064

1,596,189

Less: Intangibles

(114,246

)

(18,124

)

(18,971

)

(19,818

)

(20,665

)

Less: Goodwill

(95,342

)

(22,152

)

(22,152

)

(22,152

)

(22,152

)

Total Intangibles & Goodwill

(209,588

)

(40,276

)

(41,123

)

(41,970

)

(42,817

)

Tangible Common Equity

1,433,106

1,600,962

1,653,407

1,672,094

1,553,372

Investment Portfolio Segment

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 on our investment portfolio segment.

For the Quarters Ended

(dollars in thousands)

Accretable Discount (Net of Premiums)

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

December 31, 2024

Balance, beginning of period

89,297

108,412

110,861

117,203

123,953

Accretion of discount

(8,795

)

(10,803

)

(8,253

)

(7,705

)

(8,855

)

Purchases

—

Sales

(4,224

)

(10,786

)

188

—

Elimination in consolidation

—

Transfers from/(to) credit reserve, net

3,144

2,474

5,616

1,363

2,105

Balance, end of period

79,422

89,297

108,412

110,861

117,203

Residential Origination Segment

Earnings Before Taxes, Depreciation and Amortization

In managing our residential origination segment, management additionally uses Earnings Before Taxes, Depreciation and Amortization, or EBTDA, a non-GAAP measure, as a supplemental performance measure to evaluate the underlying operating efficiency and scalability of the business. EBTDA is defined as GAAP Net Income of the Residential Origination Segment, adjusted for federal and state tax provisions; and non-cash items such as intangibles amortization and depreciation. Because origination lending is primarily driven by a gain on origination and sales of loan, net and personnel-based costs, EBTDA helps isolate core operating results by excluding the effects of capital structure, non-cash depreciation and amortization, and tax attributes that can vary period to period. This measure allows management to assess margin performance, expense discipline, and incremental profitability as loan volumes fluctuate, and supports internal decision-making related to staffing levels, compensation structures, and growth initiatives. We believe this presentation is useful to investors because it provides investors with important information concerning the operating performance of our Residential Origination Segment exclusive of certain non-cash and other costs. However, EBTDA should not be viewed in isolation and is not a substitute for net income computed in accordance with GAAP.

The following table provides a reconciliation from GAAP net income to common stockholders for our residential origination segment to a non-GAAP measure of EBTDA for the period presented.

For the Quarter and Year Ended

December 31, 2025

(dollars in thousands)

Residential Origination

Net income available to common shareholders

8,494

Adjustments:

Income tax expense (benefit)

(453

)

Amortization of intangibles and depreciation expenses

3,418

Earnings Before Taxes, Depreciation and Amortization

11,459

Disclaimer

In this press release references to “we,” “us,” “our,” “Chimera,” or “the Company” refer to Chimera Investment Corporation and its subsidiaries unless specifically stated otherwise or the context otherwise indicates. 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, including as related to the expected impact. 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 “goal,” “expect,” “target,” “assume,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “would,” “will,” “could,” “should,” “believe,” “predict,” “potential,” “continue,” or 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 ability to obtain funding on favorable terms and access the capital markets; our ability to achieve optimal levels of leverage and effectively manage our liquidity; changes in inflation, the yield curve, interest rates and mortgage prepayment rates; our ability to manage credit risk related to our investments and comply with the Dodd-Frank Act and related laws and regulations relating to credit risk retention for securitizations; rates of default, delinquencies, forbearance, deferred payments or decreased recovery rates on our investments; the concentration of properties securing our securities and residential loans in a small number of geographic areas; our ability to execute on our business and investment strategy; our ability to determine accurately the fair market value of our assets; changes in our industry, the general economy or geopolitical conditions; our ability to successfully integrate and realize the anticipated benefits of any acquisitions, including the acquisition of HomeXpress; our ability to originate or acquire quality and profitable loans at an appropriate and consistent cost; our ability to sell the loans that we originate or acquire; our ability to refinance or obtain additional liquidity for borrowing; our ability to manage, maintain and expand our relationships with our clients, the independent mortgage brokers and bankers; our ability to operate our investment management and advisory services and manage any regulatory rules and conflicts of interest; the degree to which our hedging strategies may or may not be effective; our ability to effect our strategy to securitize residential mortgage loans; our ability to compete with competitors and source target assets at attractive prices; the ability of servicers and other third parties to perform their services at a high level and comply with applicable law and expanding regulations; our dependence on information technology and its susceptibility to cyber-attacks; the development, proliferation and use of artificial intelligence; our ability to find and retain qualified executive officers and key personnel; our ability to comply with extensive government regulation, including, but not limited to, federal and state consumer lending regulations; the impact of and changes in governmental regulations, tax law and rates, accounting guidance, refinancing and borrowing guidelines and similar matters; our ability to maintain our exemption from registration under the Investment Company Act of 1940, as amended; our ability to maintain our classification as a real estate investment trust for U.S. federal income tax purposes; the volatility of the market price and trading volume of our shares; and our ability to make distributions to our stockholders in the future.

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