Chimera Investment (NYSE: CIM) boosts 2025 earnings and raises dividend outlook
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Chimera Investment Corporation reported stronger results for Q4 and full-year 2025 and outlined a higher dividend for 2026. For Q4 2025, GAAP net income was $7 million, or $0.08 per diluted share, with earnings available for distribution of $45 million, or $0.53 per adjusted diluted share. Book value was $19.70 per common share and the quarter’s economic return was (0.9)%. For 2025, GAAP net income available to common shareholders rose to $144 million, or $1.72 per diluted share, and earnings available for distribution reached $141 million, or $1.68 per adjusted diluted share, producing a 7.4% economic return and an 8.9% return on average equity. The new Residential Origination segment (HomeXpress) generated Q4 net income of $8 million and EBTDA of $11 million on $1.0 billion of funded production. Management announced an increase in the quarterly common dividend to $0.45 per share beginning in Q1 2026 and currently expects to maintain that level for the rest of 2026.
Positive
- Strong 2025 earnings growth: GAAP net income available to common shareholders increased to $144 million, or $1.72 per diluted share, and earnings available for distribution reached $141 million, or $1.68 per adjusted diluted share, with an 8.9% return on average equity.
- Dividend increase backed by higher distributable earnings: Q4 2025 earnings available for distribution were $45 million, or $0.53 per adjusted diluted share, supporting a planned quarterly common dividend increase to $0.45 per share from Q1 2026, with expectations to maintain that level through 2026.
- Profitable Residential Origination platform: The HomeXpress Residential Origination segment generated Q4 net income of $8 million and EBTDA of $11.5 million on $1.0 billion of funded production, equating to a 16.2% annualized EBTDA return on $272 million of equity.
Negative
- None.
Insights
2025 earnings and dividend growth signal improved profitability, helped by origination and portfolio repositioning.
Chimera Investment Corporation delivered 2025 GAAP net income available to common shareholders of
The company rebalanced its portfolio toward Agency RMBS and residential credit while integrating the HomeXpress acquisition. The Residential Origination segment contributed Q4 net income of
Management raised the quarterly common dividend from
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
____________
FORM8-K
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
| (State or Other Jurisdiction | (Commission | (IRS Employer | ||||||
| of Incorporation) | File Number) | Identification No.) | ||||||
(Address of principal executive offices)
10111
(Zip Code)
Registrant’s telephone number, including area code: (888 ) 895-6557
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition
On February 11, 2026, the registrant issued a press release announcing its financial results for the quarter and year ended December 31, 2025. A copy of the press release is furnished as Exhibit 99.1 to this report.
On February 11, 2026, the registrant posted investor presentation information on the News & Events - Press Releases section of its website (www.chimerareit.com). A copy of the investor presentation information is furnished as Exhibit 99.2 to this report and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
99.1 Press Release, dated February 11, 2026, issued by Chimera Investment Corporation
99.2 Investor Presentation Q4 2025
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Chimera Investment Corporation
By: /s/ Subramaniam Viswanathan
Name: Subramaniam Viswanathan Title: Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer of the registrant)
Date: February 11, 2026
FOR IMMEDIATE RELEASE
CHIMERA INVESTMENT CORPORATION REPORTS
FOURTH QUARTER AND FULL YEAR 2025 EARNINGS
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.
1
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.
Contact
Investor Relations
888-895-6557
investor-relations@chimerareit.com
www.chimerareit.com
2
| 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.
3
| 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.
4
| 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 | |||||
5
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.
6
| 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:
7
| 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 | ||||||||||||||
8
| 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 | ||||||||||||||
9
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 | % | ||||||||||
(1) Bond Equivalent Yield at period end.
| December 31, 2024 | |||||||||||||||||
| 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 | $ | 1,010,128 | $ | 45.11 | $ | 60.83 | 5.7 | % | 17.6 | % | |||||||
| Subordinated | 648,977 | 59.18 | 57.99 | 4.5 | % | 8.0 | % | ||||||||||
| Interest-only | 2,644,741 | 5.81 | 2.77 | 0.7 | % | 6.6 | % | ||||||||||
| Agency RMBS | |||||||||||||||||
| CMO | 464,640 | 99.97 | 99.36 | 5.8 | % | 5.8 | % | ||||||||||
| Interest-only | 380,311 | 5.15 | 4.41 | 0.7 | % | 6.9 | % | ||||||||||
| Agency CMBS | |||||||||||||||||
| Project loans | 40,882 | 101.51 | 84.07 | 3.5 | % | 3.4 | % | ||||||||||
| Interest-only | 449,437 | 1.36 | 1.43 | 0.5 | % | 8.9 | % | ||||||||||
(1) Bond Equivalent Yield at period end.
At December 31, 2025 and December 31, 2024, the secured financing agreements collateralized by MBS and Loans held for investment had the following remaining maturities and borrowing rates.
10
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||
Principal (1) | Weighted Average Borrowing Rates | Range of Borrowing Rates | Principal | Weighted Average Borrowing Rates | Range of Borrowing Rates | ||||||||||||||||||
| Overnight | $ | — | N/A | N/A | $ | — | N/A | N/A | |||||||||||||||
| 1 to 29 days | 2,630,804 | 4.15% | 3.93% - 6.76% | 642,358 | 5.61% | 4.66% - 7.52% | |||||||||||||||||
| 30 to 59 days | 781,654 | 4.86% | 3.94% - 6.54% | 959,559 | 7.79% | 5.34% - 12.50% | |||||||||||||||||
| 60 to 89 days | 722,995 | 4.75% | 3.90% - 6.54% | 318,750 | 5.58% | 4.87% - 7.02% | |||||||||||||||||
| 90 to 119 days | 263,081 | 6.78% | 5.37% - 6.97% | 51,416 | 6.38% | 5.51% - 6.77% | |||||||||||||||||
| 120 to 180 days | 96,153 | 5.47% | 5.36% - 6.54% | 123,072 | 6.15% | 5.82% - 6.77% | |||||||||||||||||
| 180 days to 1 year | 810,443 | 6.03% | 4.77% - 8.38% | 409,760 | 6.79% | 5.80% - 7.49% | |||||||||||||||||
| 1 to 2 years | 733,206 | 6.79% | 4.98% - 8.15% | — | N/A | N/A | |||||||||||||||||
| 2 to 3 years | — | —% | —% - —% | 337,245 | 5.02% | 5.02% - 5.02% | |||||||||||||||||
| Total | $ | 6,038,336 | 5.02% | $ | 2,842,160 | 6.48% | |||||||||||||||||
Investment Portfolio Segment
| December 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | ||||||||||||||
| Portfolio Composition | Amortized Cost | Fair Value | |||||||||||||||
| Non-Agency RMBS | 5.5 | % | 7.9 | % | 5.8 | % | 8.3 | % | |||||||||
| Senior | 2.9 | % | 3.7 | % | 3.6 | % | 4.8 | % | |||||||||
| Subordinated | 1.6 | % | 3.0 | % | 1.6 | % | 2.9 | % | |||||||||
| Interest-only | 1.0 | % | 1.2 | % | 0.6 | % | 0.6 | % | |||||||||
| Agency RMBS | 24.1 | % | 3.7 | % | 24.2 | % | 3.7 | % | |||||||||
| Pass-through | 21.6 | % | — | % | 21.8 | % | — | % | |||||||||
| CMO | 2.4 | % | 3.6 | % | 2.3 | % | 3.6 | % | |||||||||
| Interest-only | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | |||||||||
| Agency CMBS | 0.3 | % | 0.4 | % | 0.2 | % | 0.4 | % | |||||||||
| Project loans | 0.3 | % | 0.3 | % | 0.2 | % | 0.3 | % | |||||||||
| Interest-only | 0.0 | % | 0.1 | % | 0.1 | % | 0.1 | % | |||||||||
| Loans held for investment | 69.8 | % | 88.0 | % | 69.5 | % | 87.6 | % | |||||||||
| Interests in MSR financing receivables | 0.3 | % | N/A | 0.3 | % | N/A | |||||||||||
| Fixed-rate percentage of portfolio | 86.5 | % | 87.9 | % | 86.1 | % | 87.3 | % | |||||||||
| Adjustable-rate percentage of portfolio | 13.5 | % | 12.1 | % | 13.9 | % | 12.7 | % | |||||||||
The following table summarizes certain characteristics of our consolidated assets and liabilities at December 31, 2025 and December 31, 2024.
| December 31, 2025 | December 31, 2024 | |||||||
| (dollars in thousands) | ||||||||
Interest earning assets at period-end (1) | $ | 15,017,791 | $ | 12,780,065 | ||||
| Interest bearing liabilities at period-end | $ | 13,070,591 | $ | 10,014,759 | ||||
| GAAP Leverage at period-end | 5.1:1 | 4.0:1 | ||||||
| GAAP Leverage at period-end (recourse) | 2.4:1 | 1.2:1 | ||||||
(1) Excludes cash and cash equivalents.
11
Economic Net Interest Income - Investment Portfolio Segment
Our Economic net interest income for our Investment Portfolio Segment is a non-GAAP financial measure that equals GAAP net interest income adjusted for net periodic interest on derivatives, interest income from Residential Origination segment and interest income from investment in MSR financing receivables, and excludes interest earned on cash and interest expense from Residential Origination segment. For the purpose of computing economic net interest income and ratios relating to cost of funds measures throughout this section, interest expense includes net payments on our derivatives, which is presented as a part of Net gains (losses) on derivatives in our Consolidated Statements of Operations. Interest rate swaps, Interest rate cap and Swap futures are used to manage the increase in interest paid on secured financing agreements in a rising rate environment. Presenting the net contractual interest payments on interest rate derivatives with the interest paid on interest-bearing liabilities reflects our total contractual interest payments. We believe this presentation is useful to investors because it depicts the economic value of our investment strategy by showing all components of interest expense and net interest income of our investment portfolio. However, Economic net interest income should not be viewed in isolation and is not a substitute for net interest income computed in accordance with GAAP. Where indicated, interest expense, adjusting for any interest earned on cash, is referred to as Economic interest expense. Where indicated, net interest income reflecting net periodic interest on derivatives and any interest earned on cash, is referred to as Economic net interest income.
The following table reconciles the Economic net interest income to GAAP net interest income and Economic interest expense to GAAP interest expense for the periods presented.
| GAAP Interest Income | Interest Income on Mortgage Loan Origination | Other (1) | Economic Interest Income | GAAP Interest Expense | Periodic Interest On Derivatives, net & Interest Expense on Mortgage Loan Origination | Economic Interest Expense | GAAP Net Interest Income | Periodic Interest On Derivatives, net | Other (1) | Net Interest Income on Mortgage Loan Origination | Economic Net Interest Income | |||||||||||||||||||||||||||||||||
| For the Year Ended December 31, 2025 | $ | 821,343 | $ | (12,355) | $ | (8,796) | $ | 800,192 | $ | 554,924 | $ | (30,054) | $ | 524,870 | $ | 266,419 | $ | 20,375 | $ | (8,796) | $ | (2,676) | $ | 275,322 | ||||||||||||||||||||
| For the Year Ended December 31, 2024 | $ | 760,950 | $ | — | $ | (7,352) | $ | 753,598 | $ | 496,274 | $ | (23,780) | $ | 472,494 | $ | 264,676 | $ | 23,780 | $ | (7,352) | $ | — | $ | 281,104 | ||||||||||||||||||||
| For the Year Ended December 31, 2023 | $ | 772,904 | $ | — | $ | (9,871) | $ | 763,033 | $ | 509,541 | $ | (17,167) | $ | 492,374 | $ | 263,363 | $ | 17,167 | $ | (9,871) | $ | — | $ | 270,659 | ||||||||||||||||||||
| For the Quarter Ended December 31, 2025 | $ | 220,328 | $ | (12,355) | $ | (3,540) | $ | 204,433 | $ | 154,150 | $ | (15,101) | $ | 139,049 | $ | 66,178 | $ | 5,422 | $ | (3,540) | $ | (2,676) | $ | 65,384 | ||||||||||||||||||||
| For the Quarter Ended September 30, 2025 | $ | 209,100 | $ | — | $ | (2,204) | $ | 206,896 | $ | 144,089 | $ | (5,751) | $ | 138,338 | $ | 65,011 | $ | 5,751 | $ | (2,204) | $ | — | $ | 68,558 | ||||||||||||||||||||
| For the Quarter Ended June 30, 2025 | $ | 201,297 | $ | — | $ | (2,002) | $ | 199,295 | $ | 135,287 | $ | (5,067) | $ | 130,220 | $ | 66,010 | $ | 5,067 | $ | (2,002) | $ | — | $ | 69,075 | ||||||||||||||||||||
| For the Quarter Ended March 31, 2025 | $ | 190,616 | $ | — | $ | (1,050) | $ | 189,566 | $ | 121,397 | $ | (4,135) | $ | 117,262 | $ | 69,219 | $ | 4,135 | $ | (1,050) | $ | — | $ | 72,304 | ||||||||||||||||||||
(1) Primarily interest income on cash and cash equivalents from our Investment Portfolio and Residential Origination segments and interest income from investment in MSR financing receivables.
12
The table below shows our average earning assets held, interest earned on assets, yield on average interest earning assets, average debt balance, economic interest expense, economic average cost of funds, economic net interest income and net interest rate spread for the periods presented.
| For the Quarters Ended | |||||||||||||||||||||||||||||
| December 31, 2025 | September 30, 2025 | December 31, 2024 | |||||||||||||||||||||||||||
| (dollars in thousands) | (dollars in thousands) | (dollars in thousands) | |||||||||||||||||||||||||||
| Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | |||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||
Interest-earning assets (1)(4)(6): | |||||||||||||||||||||||||||||
Agency RMBS (3) | $ | 2,975,920 | $ | 40,159 | 5.4 | % | $ | 2,520,146 | $ | 34,108 | 5.9 | % | $ | 19,136 | $ | 303 | 6.3 | % | |||||||||||
| Agency CMBS | 40,391 | 417 | 4.1 | % | 41,062 | 464 | 4.5 | % | 105,270 | 1,138 | 4.3 | % | |||||||||||||||||
Non-Agency RMBS (3) | 763,957 | 24,735 | 12.9 | % | 872,037 | 27,872 | 12.5 | % | 950,366 | 29,611 | 12.5 | % | |||||||||||||||||
| Loans held for investment | 10,027,070 | 139,102 | 5.5 | % | 10,482,981 | 143,952 | 5.5 | % | 11,882,662 | 158,501 | 5.3 | % | |||||||||||||||||
MSR(5) | 38,221 | 20 | 0.2 | % | 38,221 | 500 | 5.2 | % | — | — | — | % | |||||||||||||||||
| Total | $ | 13,845,559 | $ | 204,433 | 5.9 | % | $ | 13,954,447 | $ | 206,896 | 5.9 | % | $ | 12,957,434 | $ | 189,553 | 5.9 | % | |||||||||||
| Liabilities and stockholders' equity: | |||||||||||||||||||||||||||||
Interest-bearing liabilities (2)(4)(6): | |||||||||||||||||||||||||||||
| Secured financing agreements collateralized by: | |||||||||||||||||||||||||||||
Agency RMBS (3) | $ | 2,913,324 | $ | 27,523 | 4.3 | % | $ | 2,450,389 | $ | 24,160 | 4.7 | % | $ | — | $ | — | — | % | |||||||||||
| Agency CMBS | 30,899 | 329 | 4.3 | % | 30,704 | 355 | 4.6 | % | 75,847 | 1,071 | 5.6 | % | |||||||||||||||||
Non-Agency RMBS (3) | 491,472 | 6,217 | 5.1 | % | 565,871 | 7,378 | 5.2 | % | 710,550 | 13,561 | 7.6 | % | |||||||||||||||||
| Loans held for investment | 1,533,349 | 26,141 | 6.8 | % | 1,752,317 | 30,214 | 6.9 | % | 1,761,188 | 30,298 | 6.9 | % | |||||||||||||||||
| Securitized Debt | 7,177,468 | 72,474 | 4.0 | % | 7,321,240 | 72,285 | 3.9 | % | 8,422,017 | 76,327 | 3.6 | % | |||||||||||||||||
Long Term Debt (3) | 259,750 | 6,365 | 9.8 | % | 158,212 | 3,946 | 10.0 | % | — | — | — | % | |||||||||||||||||
| Total | $ | 12,406,262 | $ | 139,049 | 4.5 | % | $ | 12,278,733 | $ | 138,338 | 4.5 | % | $ | 10,969,602 | $ | 121,257 | 4.4 | % | |||||||||||
| Economic net interest income/net interest rate spread | $ | 65,384 | 1.4 | % | $ | 68,558 | 1.4 | % | $ | 68,296 | 1.5 | % | |||||||||||||||||
| Net interest-earning assets/net interest margin | $ | 1,439,297 | 1.9 | % | $ | 1,675,714 | 2.0 | % | $ | 1,987,832 | 2.1 | % | |||||||||||||||||
| Ratio of interest-earning assets to interest bearing liabilities | 1.12 | 1.14 | 1.18 | ||||||||||||||||||||||||||
| (1) Interest-earning assets at amortized cost. | |||||||||||||||||||||||||||||
| (2) Interest includes periodic interest on derivatives, net. | |||||||||||||||||||||||||||||
| (3) These amounts have been adjusted to reflect the daily outstanding averages for which the financial instruments were held during the period. | |||||||||||||||||||||||||||||
| (4) This table excludes interest-bearing assets and liabilities of our Residential Origination segment. Our Residential Origination segment includes average assets of $775 million, average liabilities of $621 million, interest income of $13 million, interest expense of $10 million, and net interest income of $3 million. | |||||||||||||||||||||||||||||
| (5) The average balance amount represents committed capital by the Company during the period. | |||||||||||||||||||||||||||||
13
The table below shows our Net income (loss) and Economic net interest income as a percentage of average stockholders' equity and Earnings available for distribution as a percentage of average common stockholders' equity, and Average Tangible Common Equity. Return on average equity is defined as our GAAP net income (loss) as a percentage of average equity. Average equity is defined as the average of our beginning and ending stockholders' equity balance for the period reported. Economic net interest income and Earnings available for distribution are non-GAAP measures as defined in previous sections. Tangible Common Equity is a non-GAAP measure and is defined below.
| Return on Average Equity | Economic Net Interest Income/Average Equity (1) | Earnings available for distribution/Average Common Equity | Earnings available for distribution/Average Tangible Common Equity | |||||||||||
| (Ratios have been annualized) | ||||||||||||||
| For the Year Ended December 31, 2025 | 8.91 | % | 10.88 | % | 8.51 | % | 8.91 | % | ||||||
| For the Year Ended December 31, 2024 | 6.72 | % | 10.72 | % | 7.16 | % | 7.20 | % | ||||||
| For the Year Ended December 31, 2023 | 4.87 | % | 10.45 | % | 7.19 | % | 7.19 | % | ||||||
| For the Quarter Ended December 31, 2025 | 4.41 | % | 10.75 | % | 11.00 | % | 11.91 | % | ||||||
| For the Quarter Ended September 30, 2025 | (0.09) | % | 10.56 | % | 7.26 | % | 7.44 | % | ||||||
| For the Quarter Ended June 30, 2025 | 5.38 | % | 10.49 | % | 7.54 | % | 7.72 | % | ||||||
| For the Quarter Ended March 31, 2025 | 25.89 | % | 11.19 | % | 8.10 | % | 8.32 | % | ||||||
(1) Average equity represents equity allocated to our Investment Portfolio Segment.
Tangible Common Equity is a non-GAAP measure and is defined as Total stockholders' equity available to common stockholders less intangible assets and goodwill related to the business acquisitions. We believe that this measure helps our management and investors understand our capital adequacy and changes from period to period in our common stockholders' equity exclusive of changes of intangible assets. The following table presents a reconciliation of Total Stockholders’ Equity to Tangible Common Equity as of December 31, 2025.
| For the Quarters Ended | |||||||||||||||||
| December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | |||||||||||||
| (dollars in thousands) | |||||||||||||||||
| Total stockholders' equity | $ | 2,572,694 | $ | 2,571,238 | $ | 2,624,530 | $ | 2,644,064 | $ | 2,526,189 | |||||||
| Less: Preferred stock | (930,000) | (930,000) | (930,000) | (930,000) | (930,000) | ||||||||||||
| Total stockholders' equity available to common stockholders | $ | 1,642,694 | $ | 1,641,238 | $ | 1,694,530 | $ | 1,714,064 | $ | 1,596,189 | |||||||
| Less: Intangibles | (114,246) | (18,124) | (18,971) | (19,818) | (20,665) | ||||||||||||
| Less: Goodwill | (95,342) | (22,152) | (22,152) | (22,152) | (22,152) | ||||||||||||
| Total Intangibles & Goodwill | (209,588) | (40,276) | (41,123) | (41,970) | (42,817) | ||||||||||||
| Tangible Common Equity | $ | 1,433,106 | $ | 1,600,962 | $ | 1,653,407 | $ | 1,672,094 | $ | 1,553,372 | |||||||
Investment Portfolio Segment
The following table presents changes to Accretable Discount (net of premiums) as it pertains to our Non-Agency RMBS portfolio, excluding premiums on interest-only investments, during the previous five quarters on our investment portfolio segment.
| For the Quarters Ended | |||||||||||||||||
| (dollars in thousands) | |||||||||||||||||
| Accretable Discount (Net of Premiums) | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | ||||||||||||
| Balance, beginning of period | $ | 89,297 | $ | 108,412 | $ | 110,861 | $ | 117,203 | $ | 123,953 | |||||||
| Accretion of discount | (8,795) | (10,803) | (8,253) | (7,705) | (8,855) | ||||||||||||
| Purchases | — | — | — | — | — | ||||||||||||
| Sales | (4,224) | (10,786) | 188 | — | — | ||||||||||||
| Elimination in consolidation | — | — | — | — | — | ||||||||||||
| Transfers from/(to) credit reserve, net | 3,144 | 2,474 | 5,616 | 1,363 | 2,105 | ||||||||||||
| Balance, end of period | $ | 79,422 | $ | 89,297 | $ | 108,412 | $ | 110,861 | $ | 117,203 | |||||||
14
Residential Origination Segment
•MORTGAGE ORIGINATION NET INCOME OF $8 MILLION FOR THE QUARTER ENDED DECEMBER 31, 2025.
•MORTGAGE ORIGINATION EBTDA OF $11 MILLION FOR THE QUARTER ENDED DECEMBER 31, 2025.
•GENERATED ANNUALIZED EBTDA OF 16.2% ON $272 MILLION OF EQUITY FOR THE QUARTER ENDED DECEMBER 31, 2025.
•MORTGAGE ORIGINATION FUNDED PRODUCTION VOLUME OF $1.0 BILLION FOR THE QUARTER ENDED DECEMBER 31, 2025.
Earnings Before Taxes, Depreciation and Amortization
In managing our residential origination segment, management additionally uses Earnings Before Taxes, Depreciation and Amortization, or EBTDA, a non-GAAP measure, as a supplemental performance measure to evaluate the underlying operating efficiency and scalability of the business. EBTDA is defined as GAAP Net Income of the Residential Origination Segment, adjusted for federal and state tax provisions; and non-cash items such as intangibles amortization and depreciation. Because origination lending is primarily driven by a gain on origination and sales of loan, net and personnel-based costs, EBTDA helps isolate core operating results by excluding the effects of capital structure, non-cash depreciation and amortization, and tax attributes that can vary period to period. This measure allows management to assess margin performance, expense discipline, and incremental profitability as loan volumes fluctuate, and supports internal decision-making related to staffing levels, compensation structures, and growth initiatives. We believe this presentation is useful to investors because it provides investors with important information concerning the operating performance of our Residential Origination Segment exclusive of certain non-cash and other costs. However, EBTDA should not be viewed in isolation and is not a substitute for net income computed in accordance with GAAP.
The following table provides a reconciliation from GAAP net income to common stockholders for our residential origination segment to a non-GAAP measure of EBTDA for the period presented.
| For the Quarter and Year Ended | |||||
| December 31, 2025 | |||||
| (dollars in thousands) | |||||
| Residential Origination | |||||
| Net income available to common shareholders | $ | 8,494 | |||
| Adjustments: | |||||
| Income tax expense (benefit) | (453) | ||||
| Amortization of intangibles and depreciation expenses | 3,418 | ||||
| Earnings Before Taxes, Depreciation and Amortization | $ | 11,459 | |||
15
Disclaimer
In this press release references to “we,” “us,” “our,” “Chimera,” or “the Company” refer to Chimera Investment Corporation and its subsidiaries unless specifically stated otherwise or the context otherwise indicates. This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, including as related to the expected impact. Actual results may differ from expectations, estimates and projections and, consequently, readers should not rely on these forward-looking statements as predictions of future events. Words such as “goal,” “expect,” “target,” “assume,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “would,” “will,” “could,” “should,” “believe,” “predict,” “potential,” “continue,” or similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results, including, among other things, those described in our most recent Annual Report on Form 10-K, and any subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, under the caption “Risk Factors.” Factors that could cause actual results to differ include, but are not limited to: our ability to obtain funding on favorable terms and access the capital markets; our ability to achieve optimal levels of leverage and effectively manage our liquidity; changes in inflation, the yield curve, interest rates and mortgage prepayment rates; our ability to manage credit risk related to our investments and comply with the Dodd-Frank Act and related laws and regulations relating to credit risk retention for securitizations; rates of default, delinquencies, forbearance, deferred payments or decreased recovery rates on our investments; the concentration of properties securing our securities and residential loans in a small number of geographic areas; our ability to execute on our business and investment strategy; our ability to determine accurately the fair market value of our assets; changes in our industry, the general economy or geopolitical conditions; our ability to successfully integrate and realize the anticipated benefits of any acquisitions, including the acquisition of HomeXpress; our ability to originate or acquire quality and profitable loans at an appropriate and consistent cost; our ability to sell the loans that we originate or acquire; our ability to refinance or obtain additional liquidity for borrowing; our ability to manage, maintain and expand our relationships with our clients, the independent mortgage brokers and bankers; our ability to operate our investment management and advisory services and manage any regulatory rules and conflicts of interest; the degree to which our hedging strategies may or may not be effective; our ability to effect our strategy to securitize residential mortgage loans; our ability to compete with competitors and source target assets at attractive prices; the ability of servicers and other third parties to perform their services at a high level and comply with applicable law and expanding regulations; our dependence on information technology and its susceptibility to cyber-attacks; the development, proliferation and use of artificial intelligence; our ability to find and retain qualified executive officers and key personnel; our ability to comply with extensive government regulation, including, but not limited to, federal and state consumer lending regulations; the impact of and changes in governmental regulations, tax law and rates, accounting guidance, refinancing and borrowing guidelines and similar matters; our ability to maintain our exemption from registration under the Investment Company Act of 1940, as amended; our ability to maintain our classification as a real estate investment trust for U.S. federal income tax purposes; the volatility of the market price and trading volume of our shares; and our ability to make distributions to our stockholders in the future.
Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Chimera does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statement to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Additional information concerning these, and other risk factors, is contained in Chimera’s most recent filings with the Securities and Exchange Commission (SEC). All subsequent written and oral forward-looking statements concerning Chimera or matters attributable to Chimera or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above.
Readers are advised that any financial information in this press release is based on Company data available at the time of this press release and, in certain circumstances, may not have been audited by the Company’s independent auditors.
16
Q 4 2 0 2 5 | I N V E S T O R P R E S E N T A T I O N F e b r u a r y 1 1 , 2 0 2 6 RESIDENTIAL FOCUS | DIVERSIFIED INCOME
I n f o r m a t i o n u n a u d i t e d , e s t i m a t e d , a n d s u b j e c t t o c h a n g e . Disclaimer 2 This presentation includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995,. Actual results may differ from expectations, estimates and projections and, consequently, readers should not rely on these forward-looking statements as predictions of future events. Words such as “goal,” “expect,” “target,” “assume,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “would,” “will,” “could,” “should,” “believe,” “predict,” “potential,” “continue,” or similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results, including, among other things, those described in our most recent Annual Report on Form 10-K, and any subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, under the caption “Risk Factors.” Factors that could cause actual results to differ include, but are not limited to: our ability to obtain funding on favorable terms and access the capital markets; our ability to achieve optimal levels of leverage and effectively manage our liquidity; changes in inflation, the yield curve, interest rates and mortgage prepayment rates; our ability to manage credit risk related to our investments and comply with the Dodd-Frank Act and related laws and regulations relating to credit risk retention for securitizations; rates of default, delinquencies, forbearance, deferred payments or decreased recovery rates on our investments; the concentration of properties securing our securities and residential loans in a small number of geographic areas; our ability to execute on our business and investment strategy; our ability to determine accurately the fair market value of our assets; changes in our industry, the general economy or geopolitical conditions; our ability to successfully integrate and realize the anticipated benefits of any acquisitions, including the acquisition of HomeXpress; our ability to originate or acquire quality and profitable loans at an appropriate and consistent cost; our ability to sell the loans that we originate or acquire; our ability to refinance or obtain additional liquidity for borrowing; our ability to manage, maintain and expand our relationships with our clients, the independent mortgage brokers and bankers; our ability to operate our investment management and advisory services and manage any regulatory rules and conflicts of interest; the degree to which our hedging strategies may or may not be effective; our ability to effect our strategy to securitize residential mortgage loans; our ability to compete with competitors and source target assets at attractive prices; the ability of servicers and other third parties to perform their services at a high level and comply with applicable law and expanding regulations; our dependence on information technology and its susceptibility to cyber-attacks; the development, proliferation and use of artificial intelligence; our ability to find and retain qualified executive officers and key personnel; our ability to comply with extensive government regulation, including, but not limited to, federal and state consumer lending regulations; the impact of and changes in governmental regulations, tax law and rates, accounting guidance, refinancing and borrowing guidelines and similar matters; our ability to maintain our exemption from registration under the Investment Company Act of 1940, as amended; our ability to maintain our classification as a real estate investment trust for U.S. federal income tax purposes; the volatility of the market price and trading volume of our shares; and our ability to make distributions to our stockholders in the future. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Chimera does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statement to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Additional information concerning these, and other risk factors, is contained in Chimera’s most recent filings with the Securities and Exchange Commission (SEC). All subsequent written and oral forward-looking statements concerning Chimera or matters attributable to Chimera or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. This presentation may include industry and market data obtained through research, surveys, and studies conducted by third parties and industry publications. We have not independently verified any such market and industry data from third-party sources. This presentation is provided for discussion purposes only and may not be relied upon as legal or investment advice, nor is it intended to be inclusive of all the risks and uncertainties that should be considered. This presentation does not constitute an offer to purchase or sell any securities, nor shall it be construed to be indicative of the terms of an offer that the parties or their respective affiliates would accept. We use our website (www.chimerareit.com) as a channel of distribution of company information. The information we post on our website may be deemed material. Accordingly, investors should monitor our website, in addition to following our press releases, SEC filings and public conference calls and webcasts. In addition, you may automatically receive email alerts and other information about Chimera when you enroll your email address by visiting our website, then clicking on “News and Events" and selecting "Email Alerts" to complete the email notification form. Our website and any alerts are not incorporated into this document. All information in this presentation is as of December 31, 2025, unless stated otherwise. Readers are advised that the financial information in this presentation is based on company data available at the time of this presentation and, in certain circumstances, may not have been audited by the company’s independent auditors.
I n f o r m a t i o n u n a u d i t e d , e s t i m a t e d , a n d s u b j e c t t o c h a n g e . This presentation includes certain non-GAAP financial measures, including earnings available for distribution and earnings before taxes, depreciation and amortization. We believe the non-GAAP financial measures are useful for management, investors, analysts, and other interested parties in evaluating our performance but should not be viewed in isolation and are not a substitute for financial measures computed in accordance with U.S. generally accepted accounting principles (“GAAP”). In addition, we may calculate our non-GAAP metrics, such as earnings available for distribution, differently than our peers making comparative analysis difficult. Non-GAAP Financial Measures 3
I n f o r m a t i o n u n a u d i t e d , e s t i m a t e d , a n d s u b j e c t t o c h a n g e . 4 HYBRID INVESTMENT APPROACH Invests across the spectrum of mortgage products, including residential loans, mortgage securities and servicing rights. Team expertise and robust infrastructure enable a disciplined approach to delivering value across the residential continuum. SCALED MORTGAGE CREDIT PLATFORM Risk management approach emphasizes asset-level credit risk management. Data management capabilities and proprietary technologies drive efficiencies in process, risk monitoring and credit decisions. RESIDENTIAL ORIGINATION Specialty mortgage lender focused primarily on providing consumer non-QM and investor business purpose loan solutions. National footprint supporting a network of mortgage bankers and brokers. THIRD-PARTY ASSET & INVESTMENT MANAGEMENT Bespoke asset management solutions for third-party institutional investors seeking exposure to residential loans. Manager of private asset-backed credit funds on behalf of institutional allocators. KEY STATISTICS As of December 31, 2025 2007 423 $6.6B $15.8B $2.6B $26.6B(1) Year Founded Full-Time Professionals Dividends Declared Since Inception Total Assets Shareholders’ Equity 3rd Party Managed Loans Chimera Investment Corp. We are a fully integrated hybrid mortgage REIT delivering diversified investment solutions across the mortgage product spectrum. Detailed endnotes are included within the Appendix at the end of this presentation.
I n f o r m a t i o n u n a u d i t e d , e s t i m a t e d , a n d s u b j e c t t o c h a n g e . 5 Creating Long-Term Shareholder Value Positioned with diverse sources of revenue and synergistic platform capabilities. PERMANENT CAPITAL INVESTMENT PORTFOLIO ADVISORY SERVICES & THIRD-PARTY CAPITAL RESIDENTIAL ORIGINATION Liquid Agency MBS Credit RPL, NQM, RTL, Other MSR Cash flowing asset hedge Advisory Services Bespoke 3rd party loan solutions Private Funds Diversified mortgage portfolios Gain on Sale Capital market loan sales Net Interest Income Net spread on loans INVESTMENT INCOME CAPITAL-LIGHT FEES LOAN PRODUCTION & DISTRIBUTION High-touch credit risk management support to permanent capital portfolio Platform to acquire & own MSRs & expand product capabilitiesManufacturing product for capital market investors, Advisory Services clients & Private Funds Capital investment in technology, growth, & strategic initiatives across platform
I n f o r m a t i o n u n a u d i t e d , e s t i m a t e d , a n d s u b j e c t t o c h a n g e . 6 Market Summary | Q4 2025 Conditions featured Fed rate cuts, a steeper yield curve, and tightening spreads across Agency and mortgage credit products. TREASURY YIELDS(1) 9/30/2025 12/31/2025 Q4 Change 2Y Treasury 3.61 3.47 -0.14 10Y Treasury 4.15 4.17 0.02 30Y Treasury 4.73 4.84 0.11 MORTGAGE RATES(1) 30Y FRM (Bankrate) (2) 6.36 6.25 -0.11 30Y Freddie PMMS 6.30 6.15 -0.15 30Y FRM (MBA) 6.64 6.50 -0.14 AGENCY SPREADS(1) FN CC 5/10 Tsy Spread 126 110 -15 FN CC Treasury OAS 27 13 -11 FN CC Swap OAS 71 49 -19 RMBS SPREADS(2) NQM – AAA 130 125 -5 RPL AAA (A1) 125 130 5 RPL Unrated (A1) 170 175 5 CORPORATES(1) Inv Grade – Yield 4.81 4.81 0 Inv Grade - Spread 74 79 4 High Yield - Spread 267 294 -5 RA TE S Fed cuts rates at each of the last three FOMC meetings for a total of 75 basis points. 2s/10s yield curve steepened 15 basis points, to end the year with a 69-basis point spread. M O RT G AG E RA TE S Treasury yields helped guide mortgage rates down another 15 basis points during Q4. 30-year fixed mortgage rate reached the lowest levels since September 2022(3). AG EN C Y M B S MBS spreads were supported by declining interest rate volatility. Current coupon MBS tightened 15 basis points against a blend of 5- and 10-year Treasuries. ST RU C TU RE D PR O D U C TS Non-agency RMBS senior spreads were mixed at +/- 5 basis points across products. Non-QM issuance volume reached ~$67 billion through Q4; +57% versus full year 2024. H O U SI N G Affordability improved with lower rates, slower home price growth, and increasing wages. Credit conditions remained strong as mortgage delinquencies were flat to down. Detailed endnotes are included within the Appendix at the end of this presentation.
I n f o r m a t i o n u n a u d i t e d , e s t i m a t e d , a n d s u b j e c t t o c h a n g e . 7 EARNINGS & PERFORMANCE $0.53 EARNINGS AVAILABLE FOR DISTRIBUTION PER SHARE(1) $0.37 DIVIDENDS PER SHARE $19.70 BOOK VALUE PER SHARE (0.9%) ECONOMIC RETURN(2) LIQUIDITY LEVERAGE $279MM CASH $249MM UNENCUMBERED ASSETS 5.1x TOTAL LEVERAGE(3) 2.4x RECOURSE LEVERAGE RESIDENTIAL CREDIT REPO FINANCING(4) RESIDENTIAL ORIGINATION $984MM (51%) FLOATING RATE REPO(5) (PERCENTAGE OF TOTAL REPO) $1.3B (66%) NON-MARK-TO-MARKET REPO(6) (PERCENTAGE OF TOTAL REPO) $11MM EBTDA(7) 16.2% EBTDA ROE(7) Chimera | Q4 2025 Highlights First full quarter of HomeXpress contributions and realization of prior quarter capital allocation activities. Detailed endnotes are included within the Appendix at the end of this presentation.
I n f o r m a t i o n u n a u d i t e d , e s t i m a t e d , a n d s u b j e c t t o c h a n g e . 8 Chimera | Q4 2025 Highlights Growth in earnings power provided the flexibility to announce a dividend increase along with 2026 expected dividend distributions. DIVIDEND INCREASE Announced increase in dividend to $0.45 per share in Q1 2026 (from $0.37). Expect to maintain $0.45 per share for the remainder of 2026. BOOK VALUE $19.70 book value per share, down 2.7% compared to $20.24 in Q3 2025. Change attributable in large part to the increase in value of securitized debt and transaction expenses and HomeXpress acquisition. RESIDENTIAL ORIGINATION $11 million EBTDA(1) on $1.0 billion of production volume. 16.2% EBTDA ROE(2) contribution. RESIDENTIAL CREDIT Exercised redemption rights on CIM 2022-I1 securitization; sold $166 million of underlying loans and generated $28 million in capital. Sold approximately $33 million of legacy Non-Agency RMBS – releasing roughly $6.7 million of capital at a breakeven ROE of 7%. AGENCY MBS Added a net $606 million and ended the year with over $3 billion in Agency RMBS. Detailed endnotes are included within the Appendix at the end of this presentation.
I n f o r m a t i o n u n a u d i t e d , e s t i m a t e d , a n d s u b j e c t t o c h a n g e . 9 Chimera | FY 2025 Highlights Year of transition culminated in capital generation, portfolio reallocation, and the HomeXpress acquisition. Detailed endnotes are included within the Appendix at the end of this presentation. EARNINGS AVAIL. FOR DISTRIBUTION(1) DIVIDEND DISTRIBUTIONS NET INCOME ECONOMIC RETURN(2) RETURN- ON-EQUITY CAPITAL RAISED DURING 2025 $1.68 PER SHARE $1.48 PER SHARE $1.72 PER SHARE 7.4% 8.9% $600+ MILLION CAPITAL GENERATION CAPITAL REALLOCATION HOMEXPRESS ACQUISITION $291MM REFINANCING ACTIVITIES $195MM DIVESTING OF FULLY VALUED ASSETS $116MM SENIOR UNSECURED DEBT ISSUANCE $272MM CAPITAL INVESTMENT $11MM Q4 EBTDA(3) CONTRIBUTION 16% Q4 EBTDA ROE(4) CONTRIBUTION 2024 2025 97% RESIDENTIAL CREDIT 72% 3% AGENCY MBS 16% 0% MORTGAGE SERVICING RIGHTS & HOMEXPRESS 12% CAPITAL GENERATED ORGANICALLY AND THROUGH CAPITAL MARKET ISSUANCES SUPPORTED 2025 KEY STRATEGIC INITIATIVES
I n f o r m a t i o n u n a u d i t e d , e s t i m a t e d , a n d s u b j e c t t o c h a n g e . 10 HomeXpress | Residential Origination Highlights A leading partner for loan brokers and correspondent lenders across the U.S. Q4 2025 RESIDENTIAL ORIGINATION UPDATE 18% increase in volume versus Q3 2025; 49% increased in volume relative to Q4 2024. 3.58% gain-on-sale premiums related to loans sold and settled during the quarter. Wholesale volumes represented 95% with non-delegated correspondent channel accounting for 5%. PRODUCTION VOLUME ($ in millions) PRODUCT MIX (% of unpaid principal balance) GAIN-ON-SALE PREMIUM (basis points) $697 $635 $840 $881 $1,037 $400 $500 $600 $700 $800 $900 $1,000 $1,100 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Fundings 43 39 44 39 38 56 60 54 58 58 1 1 2 3 4 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 NQM Investor QM 350 287 315 315 358 200 220 240 260 280 300 320 340 360 380 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Gain-on-Sale Premium Detailed endnotes are included within the Appendix at the end of this presentation.
I n f o r m a t i o n u n a u d i t e d , e s t i m a t e d , a n d s u b j e c t t o c h a n g e . 11 Scaled mortgage loan portfolio with robust securitization market presence Detailed endnotes are included within the Appendix at the end of this presentation. SECURITIZED DEBT (NON-RECOURSE) $6,788 MILLION REPO FINANCING (RECOURSE) $5,229 MILLION UNSECURED DEBT $252 MILLION EQUITY(4) $2,292 MILLION KEY FUNDING METRICS INVESTMENT PORTFOLIO(1) Fair Market Value as of December 31, 2025 (Excludes Residential Origination) SE C U RI TI ZE D L O AN S RE-PERFORMING $8,762 MILLION 62% INVESTOR $594 MILLION 4% LO AN S PRIME JUMBO & BUSINESS PURPOSE $448 MILLION 3% SE C U RI TI ES NON-AGENCY RMBS $817 MILLION 6% AGENCY MBS $3,463 MILLION 25% M SR MORTGAGE SERVICING RIGHTS(2) $37 MILLION 0% OUTSTANDING SECURITIZATIONS(1) One of the largest RPL securitization issuers TOTAL LEVERAGE RATIO(3) 5.4x RECOURSE LEVERAGE RATIO 2.4x CASH $232 MILLION
I n f o r m a t i o n u n a u d i t e d , e s t i m a t e d , a n d s u b j e c t t o c h a n g e . Investment Portfolio | December 31, 2025(1) 12 Detailed endnotes are included within the Appendix at the end of this presentation. (DOLLARS IN THOUSANDS) PRINCIPAL OR NOTIONAL VALUE ($) AMORTIZED COST ($) FAIR VALUE ($) WEIGHTED AVERAGE COUPON WEIGHTED AVERAGE BOOK YIELD AT PERIOD-END SECURITIZED DEBT CURRENT FACE ($) SECURITIZED DEBT AMORTIZED COST ($) SECURITIZED DEBT FAIR VALUE ($) SECURITIZED DEBT BOOK YIELD SECURED FINANCING AGREEMENTS ($) NET ASSETS ($) NON-AGENCY RMBS(2) Senior 852,887 364,833 505,004 5.7% 20.3% 109,785 66,579 66,579(3) 2.6% 264,780 173,645 Subordinated 453,269 222,053 233,315 4.2% 9.3% 190,666 42,649 Interest-only 2,428,976 146,461 78,961 0.8% 4.4% 18,613 60,348 TOTAL NON-AGENCY RMBS 3,735,132 733,347 817,280 4.3% 13.8% 109,785 66,579 66,579 2.6% 474,059 276,642 AGENCY RMBS Agency CMO 330,871 330,685 331,909 5.1% 5.1% 318,961 12,948 Pass-through(4) 3,096,299 3,027,795 3,081,573 5.0% 5.3% 2,938,314 143,259 Interest-only 367,866 18,637 14,867 0.6% 6.5% 14,867 TOTAL AGENCY RMBS 3,795,036 3,377,117 3,428,349 4.9% 5.3% 3,257,275 171,074 AGENCY CMBS Project loans 39,693 40,295 32,539 3.4% 3.3% 29,719 2,820 Interest-only 123,375 3,295 2,597 0.7% 13.0% 1,199 1,398 TOTAL AGENCY CMBS 163,068 43,590 35,136 3.2% 4.1% 30,918 4,218 LOANS HELD FOR INVESTMENT Re-performing loans 8,946,869 8,755,845 8,786,721 5.2% 5.5% 6,561,912 6,421,080 6,193,941 3.9% 1,102,227 1,490,553 Prime loans 386,617 351,462 365,335 4.3% 5.9% 3,909 3,515 3,907 7.2% 298,663 62,765 Investor loans 569,775 581,801 593,690 7.5% 7.1% 516,136 516,087 523,453 6.6% 70,237 Business purpose loans (RTL) 85,339 84,911 82,307 8.4% 9.0% - - 66,584 15,724 TOTAL LOANS HELD FOR INVESTMENT 9,988,601 9,774,018 9,828,054 5.4% 5.7% 7,081,957 6,940,683 6,721,301 4.1% 1,467,474 1,639,279 MORTGAGE SERVICING RIGHTS Interest in MSR financing receivables 38,221 - 37,294 37,294 TOTAL MSR 38,221 37,294 37,294 TOTAL INVESTMENT PORTFOLIO 17,720,057 13,928,072 14,146,113 7,191,742 7,007,262 6,787,880 5,229,726 2,128,508
I n f o r m a t i o n u n a u d i t e d , e s t i m a t e d , a n d s u b j e c t t o c h a n g e . 13 Agency Pass-Throughs(1) | Portfolio Overview QUARTERLY UPDATE Added $606 million of notional in Agency pass-throughs (net purchases and sales). Leverage increased from 7.3x to 7.4x while maintaining key risk sensitivities within tolerances. 13% - 15% run rate levered returns. COUPON NOTIONAL ($MM) FAIR VALUE ($MM) % OF TOTAL EQUITY BUFFER (3) ($MM) REPO ($MM) PORTFOLIO EQUITY ($MM) PORTFOLIO LEVERAGE (DEBT/EQUITY) 3M ACTUAL CPR (4) 3M GENERIC CPR (4) 2.0% 13 11 0.3 1 10 2 5.8 3.4 4.1 3.0% 194 172 5.6 20 164 30 5.4 7.3 5.0 3.5% 53 49 1.6 6 47 8 5.6 9.5 6.0 4.0% 402 385 12.5 42 368 63 5.8 4.3 3.7 4.5% 304 298 9.7 30 284 46 6.2 7.2 2.5 5.0% 558 560 18.2 45 534 75 7.1 6.0 4.3 5.5% 1,260 1,286 41.7 74 1,226 141 8.7 10.5 13.7 6.0% 312 322 10.4 13 306 30 10.1 22.8 24.5 TOTAL 3,096 3,082 100 231 2,938 395 7.4 AGENCY PASS-THROUGH PORTFOLIO(1) SWAP TENOR (YEARS) NOTIONAL ($MM) WEIGHTED AVERAGE FIXED PAY RATE ≤ 1 300 3.5% > 1 to ≤ 3 1,144 3.3% > 3 to ≤ 5 409 3.5% > 5 to ≤ 7 279 3.4% > 7 to ≤ 10 252 3.7% > 10 to ≤ 15 210 3.8% > 15 to ≤ 20 135 3.9% > 20 75 3.9% TOTAL 2,804 3.5% AGENCY HEDGES(2) Detailed endnotes are included within the Appendix at the end of this presentation.
I n f o r m a t i o n u n a u d i t e d , e s t i m a t e d , a n d s u b j e c t t o c h a n g e . 14 Agency Pass-Throughs(1) | Portfolio Interest Rate & Spread Sensitivities(2) QUARTERLY UPDATE $2.8 billion in notional derivatives at quarter end used to hedge interest rate risk in Agency pass-through portfolio. Hedges intended to match the key rate durations of the bonds. Model estimates of interest rate and spread sensitivities depicted below. INTEREST RATE SENSITIVITY(2) SPREAD SENSITIVITY(2) Detailed endnotes are included within the Appendix at the end of this presentation. INTEREST RATE CHANGE (basis points) ESTIMATED CHANGE IN AGENCY PORTFOLIO MARKET VALUE ESTIMATED CHANGE IN AGENCY PORTFOLIO EQUITY (75) -0.7% -5.7% (50) -0.3% -2.5% (25) 0.1% -0.6% -- -- -- 25 -0.1% -0.6% 50 -0.3% -2.1% 75 -0.6% -4.4% CHANGE IN SPREAD (basis points) ESTIMATED CHANGE IN AGENCY PORTFOLIO MARKET VALUE ESTIMATED CHANGE IN AGENCY PORTFOLIO EQUITY (50) 2.5% 19.6% (20) 1.0% 7.9% (10) 0.5% 3.9% -- -- -- 10 -0.5% -3.9% 20 -1.0% -7.9% 50 -2.5% -19.6%
I n f o r m a t i o n u n a u d i t e d , e s t i m a t e d , a n d s u b j e c t t o c h a n g e . Residential Credit | Q4 2025 Portfolio Summary 15 OVERVIEW We acquire residential mortgage loans from banks, non-bank financial institutions and government sponsored agencies. We finance purchases of mortgage loans via warehouse facilities and repurchase agreements (recourse financing). We securitize loans (long-term non-recourse financing) and retain subordinate and interest-only securities along with call rights. Re-performing loans comprise 90% of the loan portfolio (by principal balance) and exhibit consistent cash flows and low convexity. Detailed endnotes are included within the Appendix at the end of this presentation. KEY LOAN STATISTICS(1) RE-PERFORMING LOANS (RPL) PRIME JUMBO INVESTOR LOANS (DSCR) BUSINESS PURPOSE LOANS (RTL) TOTAL LOAN PORTFOLIO Current Unpaid Principal Balance (UPB) $9.0 Billion $381.0 Million $569.8 Million $84.5 Million $10.0 Billion % of Total Loan Portfolio 90% 4% 6% 1% 100% Total Number of Loans 90,783 390 2,702 81 93,956 Weighted Average Loan Size $99K $978K $211K $1,043K $106K Weighted Average Interest Rate 5.83% 4.26% 7.46% 8.32% 5.88% Weighted Average Borrower Credit Score 656 754 746 729 666 Weighted Average Loan Age 221 Months 44 Months 30 Months 33 Months 202 Months Weighted Average Loan Terms(2) 457 Months 361 Months 361 Months 30 Months 444 Months Weighted Average Remaining Term 236 Months 317 Months 331 Months 8 Months 243 Months Weighted Average Original Loan-to-Value (LTV) 79% 89% 66% LTC = 66%(3) 79%(5) Amortized Loan-to-Value (LTV) 62% 76% 64% LTARV = 81%(4) 63%(5) HPI Updated Loan-to-Value (LTV) 38% 76% 59% 66% 41% 60+ Days Delinquent 8.8% 1.4% 4.7% 39.0% 8.5%
I n f o r m a t i o n u n a u d i t e d , e s t i m a t e d , a n d s u b j e c t t o c h a n g e . 16 RE-PERFORMING LOANS (RPL) INVESTOR LOANS (DSCR) PRIME JUMBO LOANS BUSINESS PURPOSE LOANS (RTL) 5.0 15.0 25.0 35.0 45.0 D ec -2 2 M ar -2 3 Ju n- 23 Se p- 23 D ec -2 3 M ar -2 4 Ju n- 24 Se p- 24 D ec -2 4 M ar -2 5 Ju n- 25 Se p- 25 D ec -2 5 Residential Credit | Delinquency Experience Residential credit fundamentals in our legacy RPL portfolio have remained stable with substantial borrower equity and loan seasoning. 60+ DAY DELINQUENCY EXPERIENCE (%)(1) 0.0 1.0 2.0 3.0 4.0 5.0 Se p- 22 D ec -2 2 M ar -2 3 Ju n- 23 Se p- 23 D ec -2 3 M ar -2 4 Ju n- 24 Se p- 24 D ec -2 4 M ar -2 5 Ju n- 25 Se p- 25 D ec -2 5 7.0 7.5 8.0 8.5 9.0 9.5 Se p- 22 D ec -2 2 M ar -2 3 Ju n- 23 Se p- 23 D ec -2 3 M ar -2 4 Ju n- 24 Se p- 24 D ec -2 4 M ar -2 5 Ju n- 25 Se p- 25 D ec -2 5 0.0 0.3 0.6 0.9 1.2 1.5 D ec -2 2 M ar -2 3 Ju n- 23 Se p- 23 D ec -2 3 M ar -2 4 Ju n- 24 Se p- 24 D ec -2 4 M ar -2 5 Ju n- 25 Se p- 25 D ec -2 5 Detailed endnotes are included within the Appendix at the end of this presentation.
I n f o r m a t i o n u n a u d i t e d , e s t i m a t e d , a n d s u b j e c t t o c h a n g e . 17 Residential Credit | Prepayment Experience Prepayments remained relatively flat in Q4 for RPL; while DSCR and Prime Jumbo prepayment activity picked up. RE-PERFORMING LOANS (RPL) INVESTOR LOANS (DSCR) PRIME JUMBO LOANS 0 2 4 6 8 10 12 Se p- 22 D ec -2 2 M ar -2 3 Ju n- 23 Se p- 23 D ec -2 3 M ar -2 4 Ju n- 24 Se p- 24 D ec -2 4 M ar -2 5 Ju n- 25 Se p- 25 D ec -2 5 0 2 4 6 8 10 D ec -2 2 M ar -2 3 Ju n- 23 Se p- 23 D ec -2 3 M ar -2 4 Ju n- 24 Se p- 24 D ec -2 4 M ar -2 5 Ju n- 25 Se p- 25 D ec -2 5 PREPAYMENT EXPERIENCE (ANNUALIZED %)(1) 0 5 10 15 20 Se p- 22 D ec -2 2 M ar -2 3 Ju n- 23 Se p- 23 D ec -2 3 M ar -2 4 Ju n- 24 Se p- 24 D ec -2 4 M ar -2 5 Ju n- 25 Se p- 25 D ec -2 5 Detailed endnotes are included within the Appendix at the end of this presentation.
I n f o r m a t i o n u n a u d i t e d , e s t i m a t e d , a n d s u b j e c t t o c h a n g e . 18 $656MM $209MM $119MM FLOATING NON-MTM $193MM CAPPED FLOATING LIMITED MTM $764MM FLOATING MTM FLOATING LIMITED MTM FIXED NON-MTM $1,941MM SECURED RECOURSE FINANCING Q1 2025 EXPECTED REPO MATURITIES ($ MILLIONS) HEDGE TYPE NOTIONAL ($ MILLIONS) WAVG PAY-FIXED OR STRIKE RATE WAVG OPTION EXPIRY WAVG MATURITY Swaps 500 3.45% -- Jan 2026 Swaptions 600 3.29% Feb 2027 Feb 2029(3) Swap Futures 50 4.00% -- March 2027 Interest Rate Cap 1,000 3.95% -- Feb 2027 TOTAL 2,150 RESIDENTIAL CREDIT HEDGES REPO MATURITIES ($ MILLIONS) $1,285MM NON-MTM & LIMITED MTM (66%) $984MM FLOATING RATE (51%)(2) Detailed endnotes are included within the Appendix at the end of this presentation. $510 $130 $16 $74 $193 $135 $157 $726 $584 $323 $308 $726 $0 $100 $200 $300 $400 $500 $600 $700 $800 0-3 Months 3-6 Months 6-12 Months 12 Months+ Mark-to-Market (MTM) Limited MTM Non-MTM Residential Credit | Secured Recourse Funding(1) We seek to lock-in our funding costs with non-recourse term securitization along with hedging our floating rate liabilities.
I n f o r m a t i o n u n a u d i t e d , e s t i m a t e d , a n d s u b j e c t t o c h a n g e . 19 Mortgage Servicing Rights Financing Receivables (“MSRs”)(1) We believe MSRs provide predictable cash flows and are a natural hedge within Chimera’s portfolio. MSR PORTFOLIO CHARACTERISTICS & VALUATION MULTIPLE As of December 31, 2025 QUARTERLY UPDATE Mortgage rates declined to 15 basis points to 6.15% during the quarter. 3-month average prepayments increased to 8.0% during quarter from 6.6% in Q3 2025. Valuation multiple increased 0.1x due to an increase in forward curves and slightly lower interest rates as higher rate loans payoff. UNPAID BALANCE LOAN COUNT WAVG NOTE RATE 3M CPR $6.2B 28.4K 4.0% 8.0% WAVG CREDIT SCORE LOAN-TO- VALUE 60+ DAYS DELINQUENT VALUATION MULTIPLE 739 69.0% 1.4% 5.7X 0.4% 2.8% 21.7% 17.7% 20.3% 6.8% 8.2% 5.6% 6.1% 1.3% 1.5% 4.9% 2.7% <2 % 2% -2 .5 % 2. 5% -3 % 3% -3 .5 % 3. 5% -4 % 4% -4 .5 % 4. 5% -5 % 5% -5 .5 % 5. 5% -6 % 6% -6 .3 % 6. 3% -6 .5 % 6. 5% -7 % >7 % NOTE RATE DISTRIBUTION As of December 31, 2025 30-Year Fixed Mortgage Rate = 6.15%
I n f o r m a t i o n u n a u d i t e d , e s t i m a t e d , a n d s u b j e c t t o c h a n g e . Third-Party Asset Management Highlights Chimera’s third-party asset management business provides advisory and transaction execution services for mortgage loan investors. 20 LOANS UNDER MGMT. GROWTH (YoY)(1) TRANSACTION GROWTH (YoY)(1) 20% 16% LOANS UNDER MANAGEMENT ($ Billions)(1) TRANSACTION VOLUME BY UNPAID BALANCE ($ Billions)(1) EXPERTISE BY ASSET TYPE(1)(2) INCEPTION-TO-DATE Re-Performing Loans Non-Performing Loans Non-QM Residential Transition Loans International Residential Loans Home Equity Products Single Family Rental $22.1 $24.5 $25.5 $26.6 $26.6 $0 $5 $10 $15 $20 $25 $30 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 $5.5 $5.8 $5.1 $5.2 $6.4 $0 $1 $2 $3 $4 $5 $6 $7 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Detailed endnotes are included within the Appendix at the end of this presentation.
Appendix
I n f o r m a t i o n u n a u d i t e d , e s t i m a t e d , a n d s u b j e c t t o c h a n g e . Quarterly Financial Metrics 22 ($2.07) $1.77 $0.17 ($0.27) $0.08 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 $0.37 $0.41 $0.39 $0.37 $0.53 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 $19.72 $21.17 $20.91 $20.24 $19.70 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 1.2x 1.2x 1.8x 2.0x 2.4x Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 $84 $253 $250 $491 $279 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 $526 $444 $311 $261 $249 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 GAAP Earnings Per Share Earnings Available for Distribution (EAD) Per Share(1) GAAP Book Value Per Share Recourse Leverage Cash ($ Millions) Unencumbered Assets Market Value ($ Millions) Detailed endnotes are included within the Appendix at the end of this presentation.
I n f o r m a t i o n u n a u d i t e d , e s t i m a t e d , a n d s u b j e c t t o c h a n g e . Earnings Available for Distribution 23 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 shareholders’ 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.
I n f o r m a t i o n u n a u d i t e d , e s t i m a t e d , a n d s u b j e c t t o c h a n g e . Earnings Available for Distribution 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. 24 Detailed endnotes are included within the Appendix at the end of this presentation. 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 626 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 $45,162 $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
I n f o r m a t i o n u n a u d i t e d , e s t i m a t e d , a n d s u b j e c t t o c h a n g e . 25 Detailed endnotes are included within the Appendix at the end of this presentation. Residential Origination | Earnings Before Taxes, Depreciation and Amortization In managing our residential origination segment, management additionally uses Earnings Before Taxes, Depreciation and Amortization, or EBTDA, a non-GAAP measure, as a supplemental performance measure to evaluate the underlying operating efficiency and scalability of the business. EBTDA is defined as GAAP Net Income of the Residential Origination Segment, adjusted for federal and state tax provisions; and non-cash items such as intangibles amortization and depreciation. Because origination lending is primarily driven by a gain on origination and sales of loan, net and personnel-based costs, EBTDA helps isolate core operating results by excluding the effects of capital structure, non-cash depreciation and amortization, and tax attributes that can vary period to period. This measure allows management to assess margin performance, expense discipline, and incremental profitability as loan volumes fluctuate, and supports internal decision-making related to staffing levels, compensation structures, and growth initiatives. We believe this presentation is useful to investors because it provides investors with important information concerning the operating performance of our Residential Origination Segment exclusive of certain non-cash and other costs. However, EBTDA should not be viewed in isolation and is not a substitute for net income computed in accordance with GAAP. The following table provides a reconciliation from GAAP net income to common stockholders for our residential origination segment to a non-GAAP measure of EBTDA for the period presented. For the Quarter and Year Ended December 31, 2025 (dollars in thousands) Residential Origination Net income available to common shareholders $ 8,494 Adjustments: Income tax expense (benefit) (453) Amortization of intangibles and depreciation expenses 3,418 Earnings Before Taxes, Depreciation and Amortization $ 11,459
I n f o r m a t i o n u n a u d i t e d , e s t i m a t e d , a n d s u b j e c t t o c h a n g e . 26 Net Interest Spread(1) The table below shows our average earning assets held, interest earned on assets, yield on average interest earning assets, average debt balance, economic interest expense, economic average cost of funds, economic net interest income, and net interest rate spread for the periods presented. Detailed endnotes are included within the Appendix at the end of this presentation. For the Quarters Ended (dollars in thousands) December 31, 2025 September 30, 2025 December 31, 2024 Average Interest Average Average Interest Average Average Interest Average Balance Yield/Cost Balance Yield/Cost Balance Yield/Cost Assets: Interest-earning assets(1)(4): Agency RMBS(3) $2,975,920 $40,159 5.40% $2,520,146 $34,108 5.90% $19,136 $303 6.30% Agency CMBS 40,391 417 4.10% 41,062 464 4.50% 105,270 1,138 4.30% Non-Agency RMBS(3) 763,957 24,735 12.90% 872,037 27,872 12.50% 950,366 29,611 12.50% Loans held for investment 10,027,070 139,102 5.50% 10,482,981 143,952 5.50% 11,882,662 158,501 5.30% MSR 38,221 20 0.20% 38,221 500 5.20% — — — % Total $13,845,559 $204,433 5.90% $13,954,447 $206,896 5.90% $12,957,434 $189,553 5.90% Liabilities and stockholders' equity: Interest-bearing liabilities(2)(4): Secured financing agreements collateralized by: Agency RMBS(3) $2,913,324 $27,523 4.30% $2,450,389 $24,160 4.70% $ — $ — — % Agency CMBS 30,899 329 4.30% 30,704 355 4.60% 75,847 1,071 5.60% Non-Agency RMBS(3) 491,472 6,217 5.10% 565,871 7,378 5.20% 710,550 13,561 7.60% Loans held for investment 1,533,349 26,141 6.80% 1,752,317 30,214 6.90% 1,761,188 30,298 6.90% Securitized Debt 7,177,468 72,474 4.00% 7,321,240 72,285 3.90% 8,422,017 76,327 3.60% Long Term Debt(3) 259,750 6,365 9.80% 158,212 3,946 10.00% — — — % Total $12,406,262 $139,049 4.50% $12,278,733 $138,338 4.50% $10,969,602 $121,257 4.40% Economic net interest income/net interest rate spread $65,384 1.40% $68,558 1.40% $68,296 1.50% Net interest-earning assets/net interest margin $1,439,297 1.90% $1,675,714 2.00% $1,987,832 2.10% Ratio of interest-earning assets to interest bearing liabilities 1.12 1.14 1.18
I n f o r m a t i o n u n a u d i t e d , e s t i m a t e d , a n d s u b j e c t t o c h a n g e . Investment Summary | September 30, 2025(1) 27 Detailed endnotes are included within the Appendix at the end of this presentation. (DOLLARS IN THOUSANDS) PRINCIPAL OR NOTIONAL VALUE ($) AMORTIZED COST ($) FAIR VALUE ($) WEIGHTED AVERAGE COUPON WEIGHTED AVERAGE BOOK YIELD AT PERIOD-END SECURITIZED DEBT CURRENT FACE ($) SECURITIZED DEBT AMORTIZED COST ($) SECURITIZED DEBT FAIR VALUE ($) SECURITIZED DEBT BOOK YIELD SECURED FINANCING AGREEMENTS ($) NET ASSETS ($) NON-AGENCY RMBS(2) Senior 865,570 373,636 520,586 5.7% 20.2% 109,786 67,558 67,558(3) 2.64% 268,509 184,523 Subordinated 499,426 257,315 265,181 4.3% 8.9% — — — — 212,975 52,208 Interest-only 2,481,658 148,446 83,071 0.7% 4.5% — — — — 18,681 64,392 TOTAL NON-AGENCY RMBS 3,846,655 779,397 868,838 4.3% 13.5% 109,786 67,558 67,558 2.64% 500,165 301,122 AGENCY RMBS Agency CMO 350,865 350,773 352,826 5.5% 5.6% — — — — 336,707 16,120 Pass-through(4) 2,561,414 2,487,679 2,520,538 4.9% 5.3% — — — — 2,416,551 103,988 Interest-only 370,958 18,766 15,683 0.7% 6.8% — — — — — 15,683 TOTAL AGENCY RMBS 3,283,236 2,857,218 2,889,047 4.9% 5.3% — — — — 2,753,258 135,791 AGENCY CMBS Project loans 39,706 40,310 32,457 3.4% 3.3% — — — — 29,673 2,784 Interest-only 124,271 3,421 2,972 0.9% 12.8% — — — — 1,256 1,716 TOTAL AGENCY CMBS 163,977 43,731 35,429 3.2% 4.1% — — — — 30,929 4,499 LOANS HELD FOR INVESTMENT Re-performing loans 9,204,848 9,003,416 9,039,144 5.5% 5.5% 6,810,837 6,663,937 6,390,889 3.90% 1,168,786 1,479,469 Prime loans 397,793 361,755 374,480 4.3% 5.9% 3,965 3,563 3,959 7.19% 309,665 60,856 Investor loans 770,195 789,826 786,384 6.9% 6.5% 620,153 619,744 628,092 6.37% — 158,292 Business purpose loans (RTL) 144,765 143,482 142,994 9.0% 6.2% — — — — 114,183 28,810 TOTAL LOANS HELD FOR INVESTMENT 10,517,601 10,298,478 10,343,002 5.6% 5.6% 7,434,955 7,287,244 7,022,940 4.11% 1,592,634 1,727,428 MORTGAGE SERVICING RIGHTS Interest in MSR financing receivables 35,528 35,528 TOTAL MSR 35,528 35,528 TOTAL INVESTMENT PORTFOLIO 17,811,469 13,978,824 14,171,844 7,544,741 7,354,802 7,090,497 4,876,986 2,204,369
I n f o r m a t i o n u n a u d i t e d , e s t i m a t e d , a n d s u b j e c t t o c h a n g e . Consolidated Loan Securitizations 28 ORIGINAL FACE ($ Thousands) REMAINING FACE ($ Thousands) WEIGHTED AVERAGE COUPON (WAC) VINTAGE DEAL TOTAL SOLD RETAINED TOTAL SOLD RETAINED Outstanding Bonds Sold Underlying Collateral FIRST CALL DATE 2025 CIM 2025-R1 391,790 333,021 58,769 366,345 316,245 58,731 5.00% 6.21% Mar-27 2025 CIM 2025-NR1 254,432 184,463 69,969 218,309 162,044 63,818 5.00% 6.15% Mar-26 2025 CIM 2025-I1 287,674 275,735 11,939 232,556 239,345 11,939 5.96% 7.83% Feb-28 2024 CIM 2024-R1 468,148 351,813 116,335 389,487 365,962 38,375 4.84% 5.63% Clean-up Call 2023 CIM 2023-I2 238,530 202,750 35,780 168,309 151,113 23,019 6.71% 7.08% Jul-26 2023 CIM 2023-R4 393,997 343,368 50,629 304,121 276,698 34,617 5.02% 5.64% Apr-28 2023 CIM 2023-R3 450,834 394,479 56,355 348,075 299,504 56,282 4.50% 5.52% Currently Callable 2023 CIM 2023-I1 236,161 205,578 30,583 168,911 156,942 18,626 6.43% 7.35% Apr-26 2023 CIM 2023-R2 447,384 364,841 82,543 334,536 260,214 82,423 5.50% 6.24% Mar-28 2023 CIM 2023-R1 585,718 512,503 73,215 434,191 374,053 71,629 5.40% 6.15% Currently Callable 2022 CIM 2022-R3 369,891 327,168 42,723 256,119 234,506 29,114 4.57% 5.42% Sep-27 2022 CIM 2022-R2 508,202 440,865 67,337 370,635 330,332 47,675 3.82% 4.75% May-27 2022 CIM 2022-R1 328,226 294,090 34,136 222,420 210,526 17,639 3.13% 4.51% Feb-27 2021 CIM 2021-R6 353,797 336,284 17,513 168,549 164,999 11,852 1.84% 5.81% Sep-26 2021 CIM 2021-R5 450,396 382,836 67,560 292,613 232,052 66,644 2.00% 5.59% Currently Callable 2021 CIM 2021-R4 545,684 463,831 81,853 285,349 213,080 80,774 2.00% 6.55% Currently Callable 2021 CIM 2021-R3 859,735 730,775 128,960 401,343 288,655 127,743 1.95% 6.66% Currently Callable 2021 CIM 2021-R2 1,497,213 1,272,631 224,582 606,625 411,168 223,187 2.07% 7.00% Currently Callable 2021 CIM 2021-R1 2,098,584 1,783,797 314,787 912,171 633,031 313,777 1.94% 7.24% Currently Callable 2020 CIM 2020-R7 653,192 562,023 91,169 317,620 236,380 89,340 2.43% 6.07% Currently Callable 2020 CIM 2020-R6 418,390 334,151 84,239 229,214 151,458 83,018 2.25% 5.35% Currently Callable 2020 CIM 2020-R5 338,416 257,027 81,389 142,540 90,243 56,613 3.19% 5.47% Clean-up Call 2020 CIM 2020-R3 438,228 328,670 109,558 222,019 119,669 107,035 4.00% 5.49% Currently Callable 2020 CIM 2020-R2 492,347 416,761 75,586 262,474 210,115 56,565 2.73% 4.32% Clean-up Call 2020 CIM 2020-R1 390,761 317,608 73,153 216,096 148,695 71,351 2.91% 5.83% Currently Callable 2019 SLST 2019-1 1,217,441 941,719 275,722 681,955 485,865 193,705 3.50% 4.46% Currently Callable 2019 CIM 2019-R5 315,039 252,224 62,815 136,087 95,553 44,347 3.57% 5.76% Clean-up Call 2019 CIM 2019-R4 320,802 256,641 64,161 149,458 90,794 61,946 3.00% 6.28% Currently Callable 2019 CIM 2019-R3 342,633 291,237 51,396 126,411 80,465 49,608 2.63% 6.57% Currently Callable 2019 CIM 2019-R2 464,327 358,172 106,155 252,388 184,019 73,421 3.60% 5.41% Clean-up Call 2019 CIM 2019-R1 371,762 297,409 74,353 191,405 122,529 72,198 3.25% 5.02% Currently Callable 2018 CIM 2018-R3 181,073 146,669 34,404 46,479 16,672 31,523 4.02% 7.14% Currently Callable 2016 CIM 2016-FRE1 185,811 115,165 70,646 61,835 5,308 61,835 3.62% 4.54% Currently Callable 2008 PHHMC 2008-CIM1 619,710 549,142 70,568 5,313 3,965 1,382 6.20% 5.00% Do Not Hold Call Rights $17,516,328 $14,625,446 $2,890,882 $9,521,958 $7,362,203 $2,431,750 3.67% 5.96%
I n f o r m a t i o n u n a u d i t e d , e s t i m a t e d , a n d s u b j e c t t o c h a n g e . Slide #4 1. Unaudited total debt related to third-party managed loans and real estate. Excludes total debt related to loans owned by the Company and discretionary credit funds. Data is sourced and reconciled to monthly mortgage loan servicer detail which is subject to subsequent adjustment and reconciliations. Slide #6 1. Sourced from Bloomberg. 2. RMBS spreads sourced from Wells Fargo and Bank of America research. 3. Source: Bankrate.com Slide #7 1. Earnings available for distribution per share is a non-GAAP measure. See additional discussion in the Appendix section of this presentation for GAAP to Non-GAAP reconciliations 2. Economic return represents the quarter-over-quarter change in book value plus dividends per common share declared divided by the beginning book value per share. 3. Total leverage includes the sum of secured financing agreements, securitized debt collateralized by Non- Agency RMBS, securitized debt at fair value collateralized by loans held for investment and long term debt all divided by total shareholders' equity. 4. Residential Credit repo financing excludes (i) Agency Pass-Throughs, Agency CMOs, Agency CMBS, legacy Agency interest only securities, and (ii) warehouse lines of credit and repurchase facility obligations related to the Residential Origination (HomeXpress) segment. 5. Floating rate repurchase agreements excludes capped floating rate facility of $193 million. 6. Non-mark-to-market repo includes financings that have margin holidays or limited mark-to-market features. 7. EBTDA, or earnings before taxes, depreciation and amortization, is a non-GAAP measure. See additional discussion in the Appendix section of this presentation for GAAP to Non-GAAP reconciliations. Slide #8 1. EBTDA, or earnings before taxes, depreciation and amortization, is a non-GAAP measure. See additional discussion in the Appendix section of this presentation for GAAP to Non-GAAP reconciliations. 2. EBTDA, or earnings before taxes, depreciation and amortization, is a non-GAAP measure. See additional discussion in the Appendix section of this presentation for GAAP to Non-GAAP reconciliations. EBTDA ROE, or return on equity, represents the EBTDA divided by the Company’s initial capital investment of $272 million, annualized. Slide #9 1. Earnings available for distribution per share is a non-GAAP measure. See additional discussion in the Appendix section of this presentation for GAAP to Non-GAAP reconciliations 2. Economic return represents the annual change in book value plus dividends per common share declared divided by the beginning book value per share. 3. EBTDA, or earnings before taxes, depreciation and amortization, is a non-GAAP measure. See additional discussion in the Appendix section of this presentation for GAAP to Non-GAAP reconciliations. 4. EBTDA, or earnings before taxes, depreciation and amortization, is a non-GAAP measure. See additional discussion in the Appendix section of this presentation for GAAP to Non-GAAP reconciliations. EBTDA ROE, or return on equity, represents the EBTDA divided by the Company’s initial capital investment of $272 million, annualized. Slide #11 1. Investment portfolio figures exclude (i) real estate owned and forward settling transactions, and (ii) assets and liabilities allocable to the Residential Origination segment. 2. Mortgage servicing rights denotes the Company’s interests in MSR financing receivables. 3. Total leverage includes the sum of secured financing agreements, securitized debt collateralized by Non- Agency RMBS, securitized debt at fair value collateralized by loans held for investment and long term debt all divided by total shareholders' equity. 4. Equity represents the shareholders’ equity attributable to the Investment Portfolio segment and excludes shareholders’ equity allocable to the Residential Origination segment. Slide #12 1. Investment portfolio figures exclude (i) real estate owned and forward settling transactions, and (ii) assets and liabilities allocable to the Residential Origination segment. 2. Non-Agency RMBS amortized cost is net of allowance for credit losses. 3. Carried at amortized cost. 4. Agency Pass-through net assets excludes cash reserves and initial margin related to our interest rate hedges allocated to the Agency MBS portfolio. Slide #13 1. Agency Pass-Throughs (i) excludes Agency CMOs, Agency CMBS, and legacy Agency interest only securities, and (ii) includes forward settling transactions, if applicable. 2. Excludes derivatives and hedges allocated to the Residential Credit portfolio and Residential Origination segment. 3. Equity Buffer includes initial cash margin held by derivative counterparties and cash reserves allocated to the Agency MBS portfolio. 4. 3-month average annualized prepayment rate (“CPR”) for (i) the active Agency Pass-Through portfolio as of the end of the quarter excludes bonds that have yet to produce three months of prepayment data, and (ii) generic CPR is estimated by Bloomberg based on prepayment speeds of bonds with similar characteristics, such as age and coupon. CPR is sourced from Bloomberg. Endnotes 29
I n f o r m a t i o n u n a u d i t e d , e s t i m a t e d , a n d s u b j e c t t o c h a n g e . Slide #14 1. Agency Pass-Throughs (i) excludes Agency CMOs, Agency CMBS, and legacy Agency interest only securities, and (ii) includes forward settling transactions, if applicable. 2. Interest rate and spread sensitivities derived using models licensed from third parties with internally derived inputs. Actual results may differ materially from projected estimates. Slide #15 1. Data is sourced from trustee reports, servicers, Bloomberg and Intex. 2. Weighted Average Loan Term is based on the most recent maturity date of the loan that includes any loan modifications or extension of the maturity date, in each case calculated from the related loan’s first payment date. 3. For Business Purpose Loans (RTLs), LTC is loan-to-cost, or the total loan amount as a percent of the house value at the time of purchase plus all budgeted improvements. 4. For Business Purpose Loans (RTLs), LTARV is loan-to-after repair value, or the total loan amount as a percent of the estimated property value after the completion of all planned and budgeted improvements. 5. Total Loan Portfolio Weighted Average Original Loan-to-Value (LTV) and Amortized Loan-to-Value (LTV) excludes the LTC and LTARV related to the Business Purpose Loans. Slide #16 1. Delinquency data sourced from Bloomberg, Intex and trustee/servicer data. Prime Jumbo excludes data prior to December 2022 due to materiality. Slide #17 1. Prepayment data sourced from Bloomberg, Intex and trustee/servicer data. Prime Jumbo excludes data prior to December 2022 due to materiality. Slide #18 1. Residential Credit secured recourse funding includes only financing and interest rate hedges related to, or allocated to, the Residential Credit portfolio. Data does not include outstanding financings or derivatives related to, or allocated to, the Agency RMBS portfolio or the Residential Origination segment. 2. Excludes capped floating rate financing of $193 million. 3. Represents the weighted average maturity date of the swaps to the extent the option to enter into the related swaps are exercised. Slide #19 1. MSR financing receivables represent the contractual right to receive cash flows associated with MSRs through a structured transaction and related financing arrangement. In these arrangements, a licensed servicer holds legal title to the MSRs and is responsible for performing all servicing activities, while the Company provides financing or capital support and, in return, receives the economic benefits of an excess servicing spread and related servicing cash flows, net of any fees and costs to service the loans. Slide #20 1. Unaudited total debt related to third-party managed loans and real estate. Excludes total debt related to loans owned by the Company and discretionary credit funds. Data is sourced and reconciled to monthly mortgage loan servicer detail which is subject to subsequent adjustment and reconciliations. 2. Inception period begins February 2013. Slide #22 1. Earnings available for distribution per adjusted diluted common share is a non-GAAP measure. See additional discussion in the Appendix section of this presentation for GAAP to Non-GAAP reconciliations. Slide #24 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. Slide #26 1. Interest-earning assets at amortized cost. 2. Interest includes periodic interest on derivatives, net. 3. These amounts have been adjusted to reflect the daily outstanding averages for which the financial instruments were held during the period. 4. This table excludes interest-bearing assets and liabilities of our Residential Origination segment. Our Residential Origination segment includes average assets of $775 million, average liabilities of $621 million, interest income of $13 million, interest expense of $10 million, and net interest income of $3 million. Slide #27 1. Investment portfolio figures exclude (i) real estate owned and forward settling transactions, and (ii) assets and liabilities allocable to the Residential Origination segment. 2. Non-Agency RMBS amortized cost is net of allowance for credit losses. 3. Carried at amortized cost. 4. Agency Pass-through net assets excludes cash reserves and initial margin related to our interest rate hedges allocated to the Agency MBS portfolio. Endnotes, continued 30
I n f o r m a t i o n u n a u d i t e d , e s t i m a t e d , a n d s u b j e c t t o c h a n g e .
FAQ
How did Chimera Investment Corporation (CIM) perform financially in full-year 2025?
Chimera reported significantly higher 2025 profitability. GAAP net income available to common shareholders was $144 million, or $1.72 per diluted share, while earnings available for distribution reached $141 million, or $1.68 per adjusted diluted share, producing a 7.4% economic return and 8.9% return on average equity.
What were Chimera Investment Corporation’s (CIM) key Q4 2025 earnings metrics?
In Q4 2025 Chimera delivered modest GAAP earnings but strong distributable income. GAAP net income was $7 million, or $0.08 per diluted share, while earnings available for distribution were $45 million, or $0.53 per adjusted diluted common share, with book value at $19.70 per share.
Is Chimera Investment Corporation (CIM) increasing its common dividend for 2026?
Yes, Chimera plans a higher common dividend. The company announced an increase to $0.45 per share starting in Q1 2026, up from $0.37, and currently expects to maintain the $0.45 quarterly dividend for the remainder of 2026, reflecting improved earnings power.
How did the HomeXpress Residential Origination segment impact Chimera (CIM) in Q4 2025?
HomeXpress provided a meaningful new earnings stream. The Residential Origination segment generated Q4 2025 net income available to common shareholders of $8 million and EBTDA of $11.5 million on $1.0 billion of funded production, equating to a 16.2% annualized EBTDA return on $272 million of equity.
What was Chimera Investment Corporation’s (CIM) book value and economic return in Q4 2025?
Book value edged lower in Q4 2025. GAAP book value per common share was $19.70 at December 31, 2025, down from $20.24 in Q3, and the quarter’s economic return, which combines book value change and dividends, was (0.9)%, reflecting portfolio and transaction impacts.
How leveraged was Chimera Investment Corporation (CIM) at year-end 2025?
Chimera operated with moderate to high leverage typical for mortgage REITs. At December 31, 2025, GAAP leverage was 5.1:1 and recourse leverage was 2.4:1, based on interest-bearing liabilities relative to stockholders’ equity and recourse obligations respectively.
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1.01B
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57.06%
1.67%
REIT - Mortgage
Real Estate Investment Trusts
United States
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