Chimera Investment (CIM) Q1 2026 earnings summary

Executive summary

• Reported a GAAP net loss of $65 million ($0.78 per diluted share) for Q1 2026, with book value per share declining 6.9% to $18.34 and economic return on book value at -4.6%.

• Earnings available for distribution (EAD) was $46 million ($0.54 per share), up from $34 million in Q1 2025, covering the $0.45 dividend by 120%.

• HomeXpress origination volume rose 39% year-over-year to $884 million, with strong profitability and EBTDA of $11 million (16.8% annualized EBTDA ROE).

• Portfolio repositioning included selling $1.2 billion of loans from called securitizations, releasing $195 million for redeployment into Agency RMBS, increasing annual earnings potential by $15 million.

• Acquisition of HomeXpress in October 2025 established the Residential Origination segment and contributed to origination growth.

Financial highlights

• Interest income rose to $219 million, with net interest income at $75 million, up from $69 million in Q1 2025.

• Interest expense increased 19% year-over-year to $144 million, mainly due to higher borrowings for Agency RMBS and HomeXpress warehouse financing.

• Comprehensive loss available to common shareholders was $73.6 million, compared to income of $144.3 million in Q1 2025.

• Dividend of $0.45 per share was fully covered by EAD; $21 million paid on preferred stock.

• Tangible common equity at quarter-end was $1.33 billion.

Outlook and guidance

• Management emphasized flexibility, portfolio diversification, and liquidity, with plans to expand Agency RMBS and MSR portfolios and launch a Non-QM securitization program using HomeXpress collateral.

• Capital reallocation is expected to improve earnings power, with increased allocation to Agency MBS and HomeXpress.

• Sufficient liquidity and capital to act on opportunities, with $476 million in cash and $200 million in unencumbered assets.

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

• Anticipates continued competition and margin compression in advisory services.