Chimera Investment Corporation reported a steep third-quarter loss as interest-rate volatility and wider mortgage spreads weighed on its book value. The mortgage investor nonetheless reported positive earnings available for distribution, maintained what it described as strong liquidity, and continued shifting its portfolio and expanding its loan-securitization business.
The company also reported growth in residential loan originations and said it completed its first Prism securitization after the quarter ended.
Quarterly financial results
– Chimera recorded a GAAP net loss available to common shareholders of $194 million, or $2.31 per diluted common share.
– Earnings available for distribution—a non-GAAP measure—were $32 million, or $0.38 per adjusted diluted common share.
– GAAP book value was $14.82 per common share. Economic return, which Chimera measures as the change in book value plus common-stock dividends, was negative 13.98%.
– The company attributed pressure on book value to significant movements in interest rates and mortgage spreads. It said it maintained strong liquidity despite volatile markets.
Portfolio and financing activity
– Chimera continued repositioning its agency mortgage-backed securities portfolio toward higher-coupon securities, which it said offered more attractive yields. About 90% of its specified pools had coupons of 5% or higher.
– It committed to purchase $797 million of loans during the quarter to support its securitization program, bringing loan purchases for the year to date to $1.1 billion.
– After the quarter ended, Chimera completed its first Prism securitization, a $291 million transaction backed by loans originated by HomeXpress.
Residential loan origination business
– Originations totaled $1.1 billion, up 27% from the prior-year period. The comparison reflects HomeXpress’s standalone results; HomeXpress was acquired on October 1, 2025.
– The segment reported a $2 million net loss and $439,000 of EBTDA.
– The quarter’s production mix was 55% investor loans, 42% consumer non-QM loans and 3% QM loans. Correspondent-channel production rose to 17% of the total.
– Chimera said it maintained disciplined pricing amid volatile market conditions.
The results show a divergence between the company’s GAAP loss and its positive earnings available for distribution. The reported decline in book value and negative economic return reflect the quarter’s market pressures, while the higher-coupon portfolio positioning, loan purchases and new securitization demonstrate continued activity in its investment and origination businesses.