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Chimera Investment Corporation Reports 3rd Quarter 2019 Earnings

October 30, 2019 GMT

NEW YORK--(BUSINESS WIRE)--Oct 30, 2019--

Chimera Investment Corporation (NYSE:CIM) today announced its financial results for the third quarter ended September 30, 2019. The Company’s GAAP net income for the third quarter was $88 million or $0.47 per common share. Core earnings (1) for the third quarter ended September 30, 2019 was $94 million or $0.50 per common share. Economic return on book value for the third quarter was 3.9% (2).

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20191030005168/en/

“During the third quarter, we sponsored three loan securitizations and purchased $1.1 billion in loans for our investment portfolio,” said Matthew Lambiase, Chimera’s CEO and President. “Chimera continues to deliver solid performance for our shareholders with total economic return of 12.5% for the first nine months of 2019.”

(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)

 

September 30, 2019

December 31, 2018

Cash and cash equivalents

$

160,894

 

$

47,486

 

Non-Agency RMBS, at fair value

2,649,834

 

2,486,130

 

Agency MBS, at fair value

11,615,323

 

12,188,950

 

Loans held for investment, at fair value

13,101,728

 

12,572,581

 

Accrued interest receivable

125,601

 

123,442

 

Other assets

973,681

 

252,582

 

Derivatives, at fair value, net

5,228

 

37,468

 

Total assets (1)

$

28,632,289

 

$

27,708,639

 

Liabilities:

 

 

Repurchase agreements ($17.0 billion and $15.8 billion pledged as collateral, respectively)

$

15,002,106

 

$

14,030,465

 

Securitized debt, collateralized by Non-Agency RMBS ($612 million and $1.0 billion pledged as collateral, respectively)

139,163

 

159,955

 

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

7,800,786

 

8,455,376

 

Payable for investments purchased

1,484,572

 

1,136,157

 

Accrued interest payable

81,232

 

110,402

 

Dividends payable

98,006

 

95,986

 

Accounts payable and other liabilities

31,380

 

16,469

 

Total liabilities (1)

$

24,637,245

 

$

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, 187,158,540 and 187,052,398 shares issued and outstanding, respectively

1,872

 

1,871

 

Additional paid-in-capital

4,274,721

 

4,072,093

 

Accumulated other comprehensive income

769,070

 

626,832

 

Cumulative earnings

3,662,722

 

3,379,489

 

Cumulative distributions to stockholders

(4,713,713

)

(4,376,748

)

Total stockholders' equity

$

3,995,044

 

$

3,703,829

 

Total liabilities and stockholders' equity

$

28,632,289

 

$

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 September 30, 2019 and December 31, 2018, total assets of consolidated VIEs were $12,356,439 and $13,392,951, respectively, and total liabilities of consolidated VIEs were $7,972,942 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 Nine Months Ended

 

September 30,
2019

September 30,
2018

September 30,
2019

September 30,
2018

Net interest income:

 

 

 

 

Interest income (1)

$

330,144

 

$

321,715

 

$

1,020,448

 

$

925,282

 

Interest expense (2)

188,551

 

174,671

 

589,611

 

485,189

 

Net interest income

141,593

 

147,044

 

430,837

 

440,093

 

Other-than-temporary impairments:

 

 

 

 

Total other-than-temporary impairment losses

 

(772

)

(801

)

(1,871

)

Portion of loss recognized in other comprehensive income

 

(6,461

)

(4,052

)

(15,651

)

Net other-than-temporary credit impairment losses

 

(7,233

)

(4,853

)

(17,522

)

Other investment gains (losses):

 

 

 

 

Net unrealized gains (losses) on derivatives

31,620

 

71,197

 

(189,865

)

178,511

 

Realized gains (losses) on terminations of interest rate swaps

(148,114

)

 

(351,372

)

 

Net realized gains (losses) on derivatives

(20,178

)

2,881

 

(37,151

)

14,573

 

Net gains (losses) on derivatives

(136,672

)

74,078

 

(578,388

)

193,084

 

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

130,825

 

(34,306

)

522,386

 

(38,204

)

Net realized gains (losses) on sales of investments

1,596

 

(6,123

)

2,673

 

(3,956

)

Gains (losses) on extinguishment of debt

 

9,263

 

(608

)

19,320

 

Total other gains (losses)

(4,251

)

42,912

 

(53,937

)

170,244

 

 

 

 

 

 

Other expenses:

 

 

 

 

Compensation and benefits

12,191

 

8,642

 

38,675

 

25,741

 

General and administrative expenses

6,528

 

5,576

 

18,569

 

16,351

 

Servicing fees

8,881

 

9,766

 

27,125

 

31,044

 

Transaction expenses

3,415

 

1,411

 

4,289

 

5,168

 

Total other expenses

31,015

 

25,395

 

88,658

 

78,304

 

Income (loss) before income taxes

106,327

 

157,328

 

283,389

 

514,511

 

Income taxes

1

 

7

 

156

 

76

 

Net income (loss)

$

106,326

 

$

157,321

 

$

283,233

 

$

514,435

 

 

 

 

 

 

Dividends on preferred stock

18,438

 

9,960

 

54,267

 

28,760

 

 

 

 

 

 

Net income (loss) available to common shareholders

$

87,888

 

$

147,361

 

$

228,966

 

$

485,675

 

 

 

 

 

 

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

 

 

 

 

Basic

$

0.47

 

$

0.79

 

$

1.22

 

$

2.59

 

Diluted

$

0.47

 

$

0.79

 

$

1.22

 

$

2.59

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

Basic

187,158,167

 

187,006,777

 

187,141,377

 

187,182,932

 

Diluted

188,440,171

 

187,584,958

 

188,331,109

 

187,705,831

 

(1) Includes interest income of consolidated VIEs of $192,622 and $223,948 for the quarters ended September 30, 2019 and 2018, respectively and $600,436 and $688,720 for the nine months ended September 30, 2019 and 2018.

(2) Includes interest expense of consolidated VIEs of $82,234 and $99,622 for the quarters ended September 30, 2019 and 2018, respectively and $260,790 and $298,744 for the nine months ended September 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 Nine Months Ended

 

September 30,
2019

September 30,
2018

September 30,
2019

September 30,
2018

Comprehensive income (loss):

 

 

 

 

Net income (loss)

$

106,326

 

$

157,321

 

$

283,233

 

$

514,435

 

Other comprehensive income:

 

 

 

 

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

29,980

 

(50,728

)

115,198

 

(181,885

)

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

 

7,233

 

4,853

 

17,522

 

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

 

(220

)

22,187

 

(4,603

)

Other comprehensive income (loss)

29,980

 

(43,715

)

142,238

 

(168,966

)

Comprehensive income (loss) before preferred stock dividends

$

136,306

 

$

113,606

 

$

425,471

 

$

345,469

 

Dividends on preferred stock

$

18,438

 

$

9,960

 

$

54,267

 

$

28,760

 

Comprehensive income (loss) available to common stock shareholders

$

117,868

 

$

103,646

 

$

371,204

 

$

316,709

 

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 securitizations. 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.

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. Certain prior period amounts have been reclassified to conform to the current period’s presentation.

 

For the Quarters Ended

 

September 30, 2019

June 30, 2019

March 31, 2019

December 31, 2018

September 30, 2018

 

(dollars in thousands, except per share data)

GAAP Net income available to common stockholders

$

87,888

 

$

40,322

 

$

100,755

 

$

(117,235

)

$

147,361

 

Adjustments:

 

 

 

 

 

Net other-than-temporary credit impairment losses

 

 

4,853

 

4,269

 

7,233

 

Net unrealized (gains) losses on derivatives

(31,620

)

132,171

 

89,315

 

319,673

 

(71,197

)

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

(130,825

)

(190,748

)

(200,812

)

(84,836

)

34,306

 

Net realized (gains) losses on sales of investments

(1,596

)

7,526

 

(8,603

)

(1,213

)

6,123

 

(Gains) losses on extinguishment of debt

 

608

 

 

(7,055

)

(9,263

)

Realized (gains) losses on terminations of interest rate swaps

148,114

 

95,211

 

108,046

 

 

 

Net realized (gains) losses on Futures (1)

19,138

 

13,544

 

12,579

 

(4,320

)

(2,799

)

Transaction expenses

3,415

 

812

 

62

 

4,441

 

1,411

 

Stock Compensation expense for retirement eligible awards

(145

)

(144

)

1,533

 

99

 

 

Core Earnings

$

94,369

 

$

99,302

 

$

107,728

 

$

113,823

 

$

113,175

 

 

 

 

 

 

 

GAAP net income per basic common share

$

0.47

 

$

0.22

 

$

0.54

 

$

(0.63

)

$

0.79

 

Core earnings per basic common share (2)

$

0.50

 

$

0.53

 

$

0.58

 

$

0.61

 

$

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 September 30, 2019 and December 31, 2018.

 

September 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

$

2,105,577

 

$

52.82

 

$

83.21

 

5.0

%

20.5

%

Senior, interest-only

7,795,886

 

3.97

 

3.81

 

1.0

%

7.9

%

Subordinated

808,647

 

62.97

 

72.96

 

3.8

%

7.5

%

Subordinated, interest-only

195,807

 

4.62

 

5.58

 

0.9

%

15.1

%

Agency MBS

 

 

 

 

 

Residential pass-through

7,790,386

 

102.32

 

104.46

 

4.0

%

3.2

%

Commercial pass-through

3,031,643

 

101.90

 

108.80

 

3.7

%

3.5

%

Interest-only

3,206,236

 

5.70

 

5.58

 

1.1

%

3.9

%

(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 September 30, 2019 and December 31, 2018, the repurchase agreements collateralized by MBS and Loans held for investment had the following remaining maturities.

 

September 30, 2019

December 31, 2018

 

(dollars in thousands)

Overnight

$

35,252

 

$

 

1 to 29 days

10,204,493

 

6,326,232

 

30 to 59 days

1,236,687

 

4,620,656

 

60 to 89 days

619,035

 

1,504,695

 

90 to 119 days

120,465

 

169,244

 

Greater than or equal to 120 days

2,786,174

 

1,409,638

 

Total

$

15,002,106

 

$

14,030,465

 

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

 

September 30, 2019

December 31, 2018

Interest earning assets at period-end (1)

$

27,366,885

 

$

27,247,661

 

Interest bearing liabilities at period-end

$

22,942,055

 

$

22,645,796

 

GAAP Leverage at period-end

5.7:1

6.1:1

GAAP Leverage at period-end (recourse)

3.8:1

3.8:1

Portfolio Composition, at amortized cost

 

 

Non-Agency RMBS

6.3

%

4.7

%

Senior

3.1

%

2.8

%

Senior, interest only

1.2

%

1.1

%

Subordinated

2.0

%

0.8

%

Subordinated, interest only

0.0

%

0.0

%

RMBS transferred to consolidated VIEs

1.3

%

2.1

%

Agency MBS

43.8

%

46.7

%

Residential

31.1

%

35.0

%

Commercial

12.0

%

11.2

%

Interest-only

0.7

%

0.5

%

Loans held for investment

48.6

%

46.5

%

Fixed-rate percentage of portfolio

95.9

%

95.8

%

Adjustable-rate percentage of portfolio

4.1

%

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 September 30, 2019

$

330,144

 

 

$

188,551

 

$

963

 

$

189,514

 

 

$

141,593

 

$

(963

)

$

(2,465

)

$

138,165

 

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

 

(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

 

September 30, 2019

 

September 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

$

10,778,708

 

$

89,163

 

3.3

%

 

$

7,776,334

 

$

66,863

 

3.4

%

Non-Agency RMBS

1,497,124

 

36,146

 

9.7

%

 

1,186,945

 

29,213

 

9.8

%

Non-Agency RMBS transferred to consolidated VIEs

459,508

 

34,228

 

29.8

%

 

632,155

 

42,416

 

26.8

%

Residential mortgage loans held for investment

12,017,663

 

168,142

 

5.6

%

 

12,613,816

 

183,544

 

5.8

%

Total

$

24,753,003

 

$

327,679

 

5.3

%

 

$

22,209,250

 

$

322,036

 

5.8

%

 

 

 

 

 

 

 

 

Liabilities and stockholders' equity:

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

Repurchase agreements collateralized by:

 

 

 

 

 

 

 

Agency MBS (2)

$

10,108,425

 

$

64,589

 

2.6

%

 

$

6,720,205

 

$

38,492

 

2.3

%

Non-Agency RMBS (2)

980,242

 

8,800

 

3.6

%

 

428,363

 

4,186

 

3.9

%

Re-REMIC repurchase agreements

395,972

 

4,116

 

4.2

%

 

621,042

 

6,681

 

4.3

%

RMBS from loan securitizations

3,112,001

 

29,775

 

3.8

%

 

2,465,678

 

25,449

 

4.1

%

Securitized debt, collateralized by Non-Agency RMBS

141,997

 

1,821

 

5.1

%

 

173,825

 

2,471

 

5.7

%

Securitized debt, collateralized by loans

7,677,138

 

80,413

 

4.2

%

 

8,938,962

 

97,150

 

4.3

%

Total

$

22,415,775

 

$

189,514

 

3.4

%

 

$

19,348,075

 

$

174,429

 

3.6

%

 

 

 

 

 

 

 

 

Economic net interest income/net interest rate spread

 

$

138,165

 

1.9

%

 

 

$

147,607

 

2.2

%

 

 

 

 

 

 

 

 

Net interest-earning assets/net interest margin

$

2,337,228

 

 

2.2

%

 

$

2,861,175

 

 

2.7

%

 

 

 

 

 

 

 

 

Ratio of interest-earning assets to interest bearing liabilities

1.10

 

 

 

 

1.15

 

 

 

 

 

 

 

 

 

 

 

(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 September 30, 2019

10.68

%

13.88

%

12.37

%

For the Quarter Ended June 30, 2019

5.93

%

14.49

%

13.10

%

For the Quarter Ended March 31, 2019

12.34

%

15.81

%

14.37

%

For the Quarter Ended December 31, 2018

(10.80

)%

16.13

%

14.79

%

For the Quarter Ended September 30, 2018

16.64

%

15.61

%

14.23

%

* 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)

September 30, 2019

June 30, 2019

March 31, 2019

December 31, 2018

September 30, 2018

 

(dollars in thousands)

Balance, beginning of period

$

514,095

 

$

485,040

 

$

505,763

 

$

539,020

 

$

540,269

 

Accretion of discount

(33,256

)

(35,964

)

(35,551

)

(36,287

)

(35,184

)

Purchases

(13,772

)

48,736

 

6,638

 

4,589

 

1,966

 

Sales and deconsolidation

1,536

 

409

 

127

 

(625

)

(986

)

Transfers from/(to) credit reserve, net

26,177

 

15,874

 

8,063

 

(934

)

32,955

 

Balance, end of period

$

494,780

 

$

514,095

 

$

485,040

 

$

505,763

 

$

539,020

 

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.

View source version on businesswire.com:https://www.businesswire.com/news/home/20191030005168/en/

CONTACT: Investor Relations

888-895-6557

www.chimerareit.com

KEYWORD: NEW YORK UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: CONSTRUCTION & PROPERTY PROFESSIONAL SERVICES REIT FINANCE

SOURCE: Chimera Investment Corporation

Copyright Business Wire 2019.

PUB: 10/30/2019 07:00 AM/DISC: 10/30/2019 07:01 AM

http://www.businesswire.com/news/home/20191030005168/en