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:

GAAP NET INCOME OF $7 MILLION, OR $0.08 PER DILUTED COMMON SHARE FOR THE QUARTER ENDED DECEMBER 31, 2025.
EARNINGS AVAILABLE FOR DISTRIBUTION⁽¹⁾ OF $45 MILLION, OR $0.53 PER ADJUSTED DILUTED COMMON SHARE.
GAAP BOOK VALUE OF $19.70 PER COMMON SHARE AT DECEMBER 31, 2025, AND ECONOMIC RETURN⁽²⁾OF (0.9)% FOR THE QUARTER ENDED DECEMBER 31, 2025.

Full Year 2025 Financial Highlights:

GAAP NET INCOME OF $144 MILLION, OR $1.72 PER DILUTED COMMON SHARE FOR THE YEAR ENDED DECEMBER 31, 2025.
EARNINGS AVAILABLE FOR DISTRIBUTION⁽¹⁾ OF $141 MILLION, OR $1.68 PER ADJUSTED DILUTED COMMON SHARE.
ECONOMIC RETURN⁽²⁾OF 7.4% FOR THE YEAR ENDED DECEMBER 31, 2025.

“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:

U.S. Toll Free: (866) 604-1613
International: (201) 689-7810
Webcast: https://www.chimerareit.com/news-events/ir-calendar

Conference Call Replay:

U.S. Toll Free: (877) 660-6853
International: (201) 612-7415
Conference ID: 13757751
A replay of this call can be accessed through Wednesday, February 25, 2026.

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)	$	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 shares issued and outstanding, respectively ($200,000 liquidation preference)		80			80
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			49			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			341			341			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		20			—			20
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		20			—			20
Other investment gains (losses)		1,252			—			1,252
Gain on origination and sale of loans, net		—			20,590			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			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	%	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	%