CHIMERA INVESTMENT CORPORATION REPORTS THIRD QUARTER 2026 RESULTS
CHIMERA INVESTMENT CORP (CIM) filed an SEC Form 8-K — Results of Operations and Financial Condition. NEWS RELEASE CHIMERA INVESTMENT CORPORATION REPORTS THIRD QUARTER 2026 RESULTS NEW YORK, November 5, 2026 - Chimera Investment Corporation (NYSE: CIM) today announced its financial results for the third quarter ended September 30, 2026. Executive Summary: Metric Value GAAP Net in
How this was made
The 30-second read
Why it matters
The earnings miss and lower book value suggest short‑term downside risk, but the aggressive loan‑purchase strategy could be a catalyst for longer‑term recovery.
Market read
First‑time disclosure of Q3 2026 results for a mid‑cap REIT; material for investors and sector peers.
What to watch
The $797 M loan purchase commitment may support future book‑value recovery.
Chimera Investment Corporation reports third-quarter 2026 GAAP loss available to common shareholders of $(194) million, or $(2.31) per diluted common share, alongside $32 million of earnings available for distribution.
Earnings available for distribution was $32 million, or $0.38 per adjusted diluted common share, but significant mortgage-spread widening and interest-rate volatility produced a $(194) million GAAP loss available to common shareholders and a (13.98)% economic return.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 interest incomeGAAP | $230.7M | – | – |
| Q3 2026 interest expenseGAAP | $159.5M | – | – |
| Q3 2026 net interest incomeGAAP | $71.18M | – | – |
| Q3 2026 increase in provision for credit lossesGAAP | $6.85M | – | – |
| Q3 2026 net gains (losses) on derivativesGAAP | $207.8M | – | – |
| Q3 2026 net unrealized gains (losses) on financial instruments at fair valueGAAP | −$391M | – | – |
| Q3 2026 net realized gains (losses) on sales of investmentsGAAP | −$26.89M | – | – |
| Q3 2026 gain on origination and sale of loans, netGAAP | $11.13M | – | – |
| Q3 2026 total other income (losses)GAAP | −$189.2M | – | – |
| Q3 2026 compensation and benefitsGAAP | $23.88M | – | – |
| Q3 2026 general and administrative expensesGAAP | $12.17M | – | – |
| Q3 2026 servicing and asset manager feesGAAP | $6.16M | – | – |
| Q3 2026 depreciation, amortization, and impairment of intangible assetsGAAP | $5.48M | – | – |
| Q3 2026 total other expensesGAAP | $47.69M | – | – |
| Q3 2026 income (loss) before income taxesGAAP | −$172.5M | – | – |
| Q3 2026 income tax expense (benefit)GAAP | −$306K | – | – |
| Q3 2026 net income (loss)GAAP | −$172.2M | – | – |
| Q3 2026 dividends on preferred stockGAAP | $21.43M | – | – |
| Q3 2026 net income (loss) available to common shareholdersGAAP | −$193.7M | – | – |
| Q3 2026 diluted net income (loss) per share available to common shareholdersGAAP | $ (2.31) | – | – |
| Q3 2026 earnings available for distributionnon-GAAP | $32.30M | – | – |
| Q3 2026 earnings available for distribution per adjusted diluted common sharenon-GAAP | $ 0.38 | – | – |
| Q3 2026 economic net interest income, Investment Portfolio segmentnon-GAAP | $69.44M | – | – |
| Q3 2026 economic net interest rate spread, Investment Portfolio segmentnon-GAAP | 1.6 % | – | – |
| Q3 2026 return on average equityGAAP | (30.04) % | – | – |
| Q3 2026 earnings available for distribution as a percentage of average common equitynon-GAAP | 9.48 % | – | – |
| Q3 2026 GAAP book value per common shareGAAP | $14.82 per common share | – | – |
| Q3 2026 economic returnGAAP | (13.98)% | – | – |
| September 30, 2026 cash and cash equivalentsGAAP | $357.2M | – | – |
| September 30, 2026 total assetsGAAP | $16.71B | – | – |
| September 30, 2026 secured financing agreementsGAAP | $8.62B | – | – |
| September 30, 2026 securitized debt at fair value, collateralized by Loans held for investmentGAAP | $5.08B | – | – |
| September 30, 2026 long term debtGAAP | $253.1M | – | – |
| September 30, 2026 total liabilitiesGAAP | $14.54B | – | – |
| September 30, 2026 total stockholders' equityGAAP | $2.17B | – | – |
| September 30, 2026 tangible common equitynon-GAAP | $1.05B | – | – |
| September 30, 2026 GAAP leverage at period-endGAAP | 6.5:1 | – | – |
| September 30, 2026 GAAP leverage at period-end (recourse)GAAP | 4.1:1 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Investment PortfolioThe company repositioned the Agency RMBS portfolio toward higher coupon securities, and approximately 90% of specified pools had coupons of 5% or higher. | $ 66,501 net interest income; $ (200,131) total other income (losses) | – | – |
| Residential OriginationFunded production volume was $1.1 billion, up 27% vs prior year period, with consumer Non-QM representing 42%, Investor Loans 55%, QM 3%, and the correspondent channel representing 17% of production. | $ 4,682 net interest income; $ 10,952 total other income (losses) | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Dividends on preferred stock were $ 21,433 for the quarter ended September 30, 2026.
- Dividends payable were $ 43,080 at September 30, 2026.
- Economic Return was (13.98)%.
What drove it
- Significant movements in interest rates and mortgage spreads impacted book value.
- The company committed to purchase $797 million of loans to support its securitization program during the quarter, bringing year-to-date purchases to $1.1 billion.
- Subsequent to quarter end, the company completed the inaugural $291 million Prism securitization backed by loans originated by HomeXpress.
- Net gains (losses) on derivatives were $ 207,764, including $ 127,224 of net unrealized gains (losses) on derivatives and $ 74,901 of realized gains (losses) on derivatives.
- The Residential Origination segment generated $ 10,952 of gain on origination and sale of loans, net.
Concerns
- Net unrealized gains (losses) on financial instruments at fair value were $ (391,000), the principal driver of the GAAP loss.
- GAAP net income (loss) available to common shareholders was $ (193,662), or $ (2.31) per diluted common share.
- GAAP book value per common share was $14.82 per common share and economic return was (13.98)%.
- Residential Origination reported net income (loss) available to common shareholders of $ (2,432).
- Earnings available for distribution declined to $ 32,302 from $ 39,047 in the preceding quarter.
What to watch
- The effect of interest-rate volatility and mortgage-spread movements on GAAP book value and fair-value marks.
- The contribution of the $291 million Prism securitization and the company's loan-purchase activity to future securitization execution.
- Residential Origination production, correspondent-channel expansion, product mix, and EBTDA.
- Liquidity, secured-financing maturities, borrowing costs, and leverage following the increase in GAAP Leverage at period-end to 6.5:1.
Balance sheet and cash flow
- Cash and cash equivalents were $ 357,179 at September 30, 2026, compared with $ 278,582 at December 31, 2025.
- Loans held for investment, at fair value were $ 7,405,464 at September 30, 2026, compared with $ 9,803,615 at December 31, 2025.
- Loans held-for-sale, at fair value were $ 1,986,814 at September 30, 2026, compared with $ 896,117 at December 31, 2025.
- Agency MBS, at fair value were $ 5,545,002 at September 30, 2026, compared with $ 3,463,485 at December 31, 2025.
- Total assets were $ 16,709,206 at September 30, 2026, compared with $ 15,808,542 at December 31, 2025.
- Total liabilities were $ 14,538,885 at September 30, 2026, compared with $ 13,235,848 at December 31, 2025.
- Interest earning assets at period-end were $ 15,652,219 and interest bearing liabilities at period-end were $ 14,013,005.
- GAAP Leverage at period-end was 6.5:1 and GAAP Leverage at period-end (recourse) was 4.1:1.
Analysis
Chimera reported a difficult third quarter marked by market-driven fair-value losses. GAAP net income (loss) available to common shareholders was $ (193,662), or $ (2.31) per diluted common share, compared with $ (21,997), or $ (0.27), in the prior-year quarter and $ (4,012), or $ (0.05), in the preceding quarter. The company attributed pressure on book value to significant credit-spread widening and interest-rate volatility. GAAP book value per common share was $14.82 per common share and economic return was (13.98)%.
The main accounting drag was $ (391,000) of net unrealized gains (losses) on financial instruments at fair value, together with $ (26,889) of net realized gains (losses) on sales of investments. Those losses outweighed $ 207,764 of net gains (losses) on derivatives. Core interest generation was comparatively stable: net interest income was $ 71,183, versus $ 70,509 in the preceding quarter and $ 65,011 in the prior-year quarter. Investment Portfolio economic net interest income was $ 69,442, while its economic net interest rate spread was 1.6 %, unchanged from the preceding quarter.
Earnings available for distribution, a non-GAAP measure, were $ 32,302, or $ 0.38 per adjusted diluted common share. This was above the $ 30,255 and $ 0.37 reported in the prior-year quarter, but below $ 39,047 and $ 0.46 in the preceding quarter. The Residential Origination segment recorded a $ (2,432) net loss available to common shareholders, although it produced EBTDA of $ 439. Funded production volume was $1.1 billion, up 27% vs prior year period, and the company expanded the correspondent channel to 17% of production.
Portfolio activity emphasized higher-coupon Agency RMBS and loan-securitization capacity. Approximately 90% of specified pools had coupons of 5% or higher, the company committed to purchase $797 million of loans during the quarter, and year-to-date purchases reached $1.1 billion. Subsequent to quarter end, Chimera completed its inaugural $291 million Prism securitization backed by HomeXpress-originated loans. At quarter end, Agency MBS at fair value were $ 5,545,002, loans held-for-sale were $ 1,986,814, and loans held for investment were $ 7,405,464.
Liquidity and funding remain central to the outlook. Cash and cash equivalents were $ 357,179, while total assets were $ 16,709,206 and total liabilities were $ 14,538,885. GAAP Leverage at period-end was 6.5:1 and recourse GAAP leverage was 4.1:1, compared with 5.1:1 and 2.4:1, respectively, at December 31, 2025. The release provided no forward financial guidance, leaving subsequent book-value performance, financing conditions, securitization execution, and Residential Origination profitability as the principal reported items to monitor.
Management, verbatim
The third quarter presented a challenging market environment, with significant credit spread widening and interest rate volatility putting pressure on our book value. Despite these headwinds, we are executing on our strategic priorities, most recently with the successful launch of Prism. Our focus is on disciplined capital allocation, maintaining strong liquidity and leveraging our expanded platform to drive long term shareholder value,
Phillip J. Kardis II, President and CEO
Not in the filing
stated, not guessed- Forward financial guidance
- Prior outlook for comparison
- Operating cash flow
- Free cash flow
- Common-stock dividend amount for the quarter
- Common-share repurchases
- GAAP gross margin
- GAAP operating income
- Total revenue reported as a consolidated line item
- Prior-quarter GAAP book value per common share
- Prior-year GAAP book value per common share
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Chimera Investment Corp is a diversified residential mortgage REIT that reported a net loss for Q3 2026 amid higher interest rates and credit spread widening.
Ticker impact
Chimera Investment Corp (NYSE:CIM) filed its 8‑K reporting Q3 2026 results, including a $194 M net loss and a 27% rise in origination volume.
downward pressure as investors price the net loss and higher interest‑rate environment.
The disclosed loss and deteriorating book‑value metrics are new, material information for a REIT, prompting a likely sell‑off.
Market effects
Mortgage‑backed‑securities sector may see broader pressure as spreads widen.
U.S. residential mortgage REITs could face valuation adjustments.
Limited to U.S. REIT investors; no immediate global ripple.
Counterpoint
If the loan purchase program stabilizes earnings, the stock could rebound on improved cash flow.
Key entities
- ExecutivePhillip J. Kardis II
President and CEO of Chimera Investment Corp, quoted on the Q3 results.
