Key Highlights

  • Earnings available for distribution were approximately USD 32 million, or USD 0.38 per share, for the third quarter.
  • GAAP net loss was USD 193.6 million, including USD 191.2 million from the Investment portfolio segment.
  • GAAP Book Value per share declined 16.5% to USD 14.82, and economic return was negative 13.98%.
  • Annualized Earnings available for distribution return on average common Equity was 9.48% for the quarter.

Chimera Investment Corporation (NYSE:CIM) reported third quarter 2026 earnings available for distribution of approximately USD 32 million, or USD 0.38 per share.

GAAP net loss for the quarter was USD 193.6 million, with a net loss of USD 191.2 million from the investment portfolio segment and USD 2.4 million from residential mortgage. Comprehensive loss before preferred stock dividends was USD 188.4 million versus USD 3.6 million a year earlier.

Rates, Book Value and Returns

Management said the 10-year Treasury experienced the third largest quarterly increase in the past decade and rose by more than 50 basis points in September alone. The Federal Reserve raised rates by 25 basis points in September, while concerns about fiscal sustainability and Treasury Supply added pressure to longer-term yields.

GAAP book value per share declined 16.5% to USD 14.82, primarily reflecting higher rates and wider spreads. Economic return on GAAP book value was negative 13.98% for the quarter, while annualized earnings available for distribution return on average common equity was 9.48%. For the first nine months, earnings available for distribution totaled USD 1.38 per share compared with USD 1.35 per share in dividends.

The average bond coupon increased from approximately 5.28% to 5.67% at quarter end, shortening portfolio duration by approximately nine months. Dividends on preferred stock were USD 21.4 million.

The Quarterly Report describes the backdrop in more detail. At its September meeting the Federal Reserve increased its target range for the federal funds rate by 25 basis points to between 3.75% and 4.00%, and the median year-end federal funds rate in updated projections was 4.1%. The ten-year Treasury Yield increased from approximately 4.47% to 5.28%, the highest level since 2007, and the 30-year conforming Mortgage rate increased from approximately 6.45% to approximately 7.39% during the quarter. September payrolls increased by 29,000 and the Unemployment rate was 4.2%. Existing home sales declined 2.0% in August to an annualized rate of approximately 4.0 million units, with inventory at approximately 4.9 months of supply.

Financing and Residential Mortgage

During the quarter the company refinanced two maturing non-mark-to-market structured repurchase facilities. In 2025 it reevaluated its reportable segments following the October 2025 Acquisition of HomeXpress Mortgage Corp.

Management said it expects the residential mortgage Business to return to profitability in the first quarter of 2027. President and CEO Phillip John Kardis and other executives, including the head of HomeXpress, discussed the business on the call.

Items to Track

Disclosed items include the direction of interest rates and spreads, book value per share, the residential mortgage return to profitability in the first quarter of 2027 and the level of earnings available for distribution relative to dividends.

The company also pointed to financing activity, including the refinancing of structured repurchase facilities that are not subject to mark-to-market margin calls.