Company: CIMO
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023813
Chunk: 43

Company: CHIMERA INVESTMENT CORP
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 43
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 earnings), net of any allowance for credit losses, were $14 million and $15 million, at March 31, 2025 and December 31, 2024, respectively. After evaluating the securities and recording any allowance for credit losses, the Company concluded that the remaining unrealized losses reflected above were non-credit related and would be recovered from the securities' estimated future cash flows. The Company considered a number of factors in reaching this conclusion, including that it did not intend to sell the securities, it was not considered more likely than not that it would be required to sell the securities prior to recovering the amortized cost, and there were no material credit events that would have caused the Company to otherwise conclude that it would not recover the amortized cost. The allowance for credit losses are 

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calculated by comparing the estimated future cash flows of each security discounted at the yield determined as of the initial acquisition date or, if since revised, as of the last date previously revised, to the net amortized cost basis. Significant judgment is used in projecting cash flows for Non-Agency RMBS.The Company has reviewed its Non-Agency RMBS that are in an unrealized loss position to identify those securities with losses that are credit related based on an assessment of changes in cash flows expected to be collected for such RMBS, which considers recent bond performance and expected future performance of the underlying collateral. A summary of the credit losses allowance on available-for-sale securities for the quarters ended March 31, 2025 and March 31, 2024 is presented below.For the Quarters EndedMarch 31, 2025March 31, 2024(dollars in thousands)Beginning allowance for credit losses$28,397 $18,560 Additions to the allowance for credit losses on securities for which credit losses were not previously recorded193 705 Allowance on purchased financial assets with credit deterioration— — Reductions for the securities sold during the period — — Increase/(decrease) on securities with an allowance in the prior period3,480 448 Write-offs charged against the allowance(305)(302)Recoveries of amounts previously written off20 496 Ending allowance for credit losses$31,785 $19,907 The following table presents significant credit quality indicators used for the credit loss allowance on our Non-Agency RMBS investments as of March 31, 2025 and December 31, 2024.March 31, 2025(dollars