Chimera Investment (CIM) Q1 2026 earnings summary

Executive summary

• Navigated a volatile market with rising Treasury yields, fluctuating mortgage rates, and shifting monetary policy expectations, while focusing on building a resilient platform not dependent on any single market environment.

• Maintained earnings strength in Q1 2026 after de-risking and selling $1.2 billion of loans from callable securitizations, releasing $195 million for redeployment, primarily into Agency MBS, increasing annual earnings potential by $15 million.

• Reportable segments redefined as Investment Portfolio and Residential Origination following the HomeXpress acquisition in October 2025.

• HomeXpress origination volume rose 39% year-over-year to $884 million, with strong profitability and EBTDA contribution.

• Book value per share declined 6.9% to $18.34, with most of the decline due to portfolio repositioning and debt redemption at par; economic return on book value was -4.6%.

Financial highlights

• Reported GAAP net loss of $65 million ($0.78 per diluted share) for Q1 2026; earnings available for distribution (EAD) were $46 million ($0.54 per share), up from $0.41 per share in Q1 2025.

• Dividend of $0.45 per share was fully covered by EAD at 1.2x; dividend increased 36% over 10 quarters.

• GAAP book value per share declined to $18.34, down from $19.70 in Q4 2025.

• Interest income rose 15% year-over-year to $219 million, driven by Agency RMBS purchases and new origination segment; net interest income was $75 million, up from $69 million in Q1 2025.

• Total leverage at 5.2x; recourse leverage at 2.9x; tangible common equity at quarter-end was $1.33 billion.

Outlook and guidance

• Expect continued uncertainty from political, geopolitical, and market-driven factors, with capital reallocation expected to improve earnings power and increased allocation to Agency MBS and HomeXpress.

• Management emphasized flexibility in the business platform and balance sheet, with a strong origination pipeline positioning the company well for the remainder of the year.

• Plans to expand Agency RMBS and MSR portfolios, launch a Non-QM securitization program using HomeXpress collateral, and grow fee-based income streams.

• HomeXpress expected to grow originations through wholesale and correspondent channels.

• Anticipates continued competition and margin compression in advisory services.