Company: CIMO
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001409493-25-000028
Chunk: 18

Company: CHIMERA INVESTMENT CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 2
Chunk 18
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 to the nine months ended September 30, 2024. 

Economic Net Interest Income

Our Economic net interest income is a non-GAAP financial measure that equals GAAP net interest income adjusted for net periodic interest on derivatives and interest income from investment in MSR financing receivables, and excludes interest earned on cash. 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.

GAAPInterestIncomeGAAPInterestExpensePeriodic Interest On Derivatives, netEconomic InterestExpenseGAAP Net InterestIncomePeriodic Interest On Derivatives, netOther (1)EconomicNetInterestIncomeFor the Quarter Ended September 30, 2025$209,100 $144,089 $(5,751)$138,338 $65,011 $5,751 $(2,204)$68,558 For the Quarter Ended June 30, 2025$201,297 $135,287 $(5,067)$130,220 $66,010 $5,067 $(2,002)$69,075 For the Quarter Ended March 31, 2025$190,616 $121,397 $(4,135)$117,262 $69,219 $4,135 $(1,050)$72,304 For the Quarter Ended December