--- title: "Chimera Investment | 8-K: FY2026 Q2 Revenue: USD 223.67 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/294952041.md" datetime: "2026-08-05T10:48:22.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294952041.md) - [en](https://longbridge.com/en/news/294952041.md) - [zh-HK](https://longbridge.com/zh-HK/news/294952041.md) generator: "portal-rs" --- # Chimera Investment | 8-K: FY2026 Q2 Revenue: USD 223.67 M Revenue: As of FY2026 Q2, the actual value is USD 223.67 M. EPS: As of FY2026 Q2, the actual value is USD -0.05, missing the estimate of USD 0.55. EBIT: As of FY2026 Q2, the actual value is USD 168.18 M. #### Executive Summary (Q2 2026) - GAAP Net Income was - $4 million, or - $0.05 per diluted common share, for Q2 2026, compared to $14,024 thousand, or $0.17 per diluted common share, for Q2 2025. - Earnings available for distribution were $39 million, or $0.46 per diluted common share, for Q2 2026. - GAAP Book Value per common share was $17.75. - The Economic Return was - 0.76%. #### Consolidated Statements of Financial Condition - **Total Assets:** Total assets increased to $16,045,048 thousand as of June 30, 2026, from $15,808,542 thousand as of December 31, 2025. - Cash and cash equivalents increased to $444,041 thousand from $278,582 thousand. - Agency MBS, at fair value, rose to $5,264,559 thousand from $3,463,485 thousand. - Loans held for investment, at fair value, decreased to $7,890,790 thousand from $9,803,615 thousand. - **Total Liabilities:** Total liabilities increased to $13,629,422 thousand as of June 30, 2026, from $13,235,848 thousand as of December 31, 2025. - Secured financing agreements increased to $7,725,542 thousand from $6,031,182 thousand. - Securitized debt at fair value, collateralized by Loans held for investment, decreased to $5,408,277 thousand from $6,721,302 thousand. - **Total Stockholders’ Equity:** Total stockholders’ equity decreased to $2,415,626 thousand as of June 30, 2026, from $2,572,694 thousand as of December 31, 2025. - Total stockholders’ equity available to common stockholders was $1,485,626 thousand as of June 30, 2026, down from $1,642,694 thousand as of December 31, 2025. - Tangible Common Equity was $1,289,434 thousand as of June 30, 2026, compared to $1,433,106 thousand as of December 31, 2025. #### Consolidated Statements of Operations (Q2 2026 vs. Q2 2025) - **Net Interest Income:** Net interest income increased to $70,509 thousand in Q2 2026 from $66,010 thousand in Q2 2025. - Interest income was $221,625 thousand, up from $201,297 thousand. - Interest expense was $151,116 thousand, up from $135,287 thousand. - **Other Income (Losses):** Total other income was $2,046 thousand in Q2 2026, compared to $1,378 thousand in Q2 2025. - Net gains on derivatives were $26,986 thousand, a significant improvement from net losses of - $15,441 thousand. - Net unrealized losses on financial instruments at fair value were - $43,386 thousand, compared to gains of $6,971 thousand. - Gain on origination and sale of loans, net, was $22,210 thousand in Q2 2026, with no comparable amount in Q2 2025. - **Other Expenses:** Total other expenses increased to $48,295 thousand in Q2 2026 from $27,120 thousand in Q2 2025. - Compensation and benefits rose to $25,102 thousand from $11,660 thousand. - General and administrative expenses increased to $11,479 thousand from $6,815 thousand. - **Net Income (Loss) Available to Common Shareholders:** Net loss available to common shareholders was - $4,012 thousand in Q2 2026, compared to net income of $14,024 thousand in Q2 2025. #### Segment Results of Operations (Q2 2026 vs. Q1 2026) - **Investment Portfolio Segment:** - Net interest income decreased to $66,705 thousand in Q2 2026 from $71,177 thousand in Q1 2026. - Net income was $8,702 thousand in Q2 2026, compared to a net loss of - $51,885 thousand in Q1 2026. - The segment completed two re-securitizations of residential mortgage loans with an aggregate principal balance of $487 million. - An additional $122 million of newly originated loans were purchased from HomeXpress, bringing retained loans at quarter end to $301 million. - **Residential Origination Segment:** - Net interest income was $3,804 thousand in Q2 2026, consistent with $3,825 thousand in Q1 2026. - Net income was $8,667 thousand in Q2 2026, compared to $7,975 thousand in Q1 2026. - The segment originated $1.1 billion in volume, marking a 30% increase year-over-year. - It generated $12 million in EBTDA, representing an annualized EBTDA ROE of 17.3%. - Product mix included 47% consumer Non-QM, 48% Investor Loans, and 5% QM. #### Key Metrics and Ratios (Q2 2026 vs. Q1 2026/Dec 31, 2025) - GAAP Leverage at period-end was 5.6:1 in Q2 2026, up from 5.1:1 at December 31, 2025. - Recourse GAAP Leverage was 3.3:1, up from 2.4:1. - For the Investment Portfolio segment, economic net interest income was $66,289 thousand in Q2 2026, down from $72,782 thousand in Q1 2026. - Return on Average Equity was 2.85% in Q2 2026, compared to - 6.97% in Q1 2026. - Earnings Available for Distribution / Average Common Equity ratio was 10.35% in Q2 2026, compared to 11.53% in Q1 2026. #### Key Statistics (as of June 30, 2026) - Chimera Investment Corporation had 456 full-time professionals. - Dividends declared since inception totaled $6.7 billion. - Total assets were $16.0 billion. - Stockholders’ equity stood at $2.4 billion. - Cash on hand amounted to $444 million. - Unencumbered assets were $212 million. - Total leverage was 5.6x, and recourse leverage was 3.3x. - Residential Credit repo financing included $716 million (37% of total repo) in fixed rate repo and $1.2 billion (61% of total repo) in non-mark-to-market repo. - The Residential Origination segment contributed $12 million in EBTDA, representing a 17.3% EBTDA ROE. - Net origination margin was 124 basis points, down year-over-year. - Wholesale volumes represented 87% of production, while non-delegated correspondent volumes more than doubled to account for 13%. - The company re-securitized $487 million of legacy re-performing loans and aggregated $301 million of loans originated by HomeXpress. - Chimera Investment Corporation added $367 million in Agency MBS, bringing the total to $5.3 billion at quarter-end, and sold $575 million of non-core Agency CMBS and RMBS positions. - The total investment portfolio had a fair value of $14,256,206 thousand, with secured financing agreements of $6,998,383 thousand and net assets of $1,785,608 thousand. - Non-Agency RMBS fair value was $727,629 thousand, Agency RMBS fair value was $5,264,561 thousand, Loans held for sale fair value was $307,031 thousand, Loans held for investment fair value was $7,921,514 thousand, and Mortgage servicing rights fair value was $35,471 thousand. - The Agency Portfolio had a total notional value of $5,290 million and a fair value of $5,265 million, with repo financing of $5,055 million and portfolio equity of $661 million, resulting in a portfolio leverage of 7.7x. - The MSR portfolio had an unpaid balance of $5.8 billion, covering 27.3 thousand loans, with a valuation multiple of 6.1x. - Loans under management were nominally flat at $25.8 billion, with transaction volume by unpaid balance at $2.8 billion for Third-Party Asset Management. #### Dividend Coverage & Sustainability - Earnings covered the dividend at 102% at $0.45 per share in Q2 2026. - Earnings covered the dividend in 9 out of the last 10 quarters, averaging 1.09x. #### Book Value - Book value per share was $17.75, a 3.2% decrease compared to $18.34 in Q1 2026. #### Net Interest Spread (Q2 2026) - The economic net interest income was $66,289 thousand, with a net interest rate spread of 1.6%. - Net interest-earning assets were $1,183,770 thousand, and the net interest margin was 1.9%. - The ratio of interest-earning assets to interest-bearing liabilities was 1.09. #### Outlook Chimera Investment Corporation maintained dividend coverage and a strong liquidity position for the second quarter. The company’s President and CEO stated that earnings available for distribution supported the $0.45 quarterly dividend. 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