Company: CIMO
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001628280-25-038345
Chunk: 31

Company: CHIMERA INVESTMENT CORP
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 2
Chunk 31
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 to the timing of the Agency RMBS Pass-through investments which occurred during the middle of the quarter.

62

Net Income (Loss) and Return on Total Stockholders' Equity

The table below shows our Net Income 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. 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.

 Return on Average EquityEconomic Net Interest Income/Average Equity Earnings available for distribution/Average Common Equity (Ratios have been annualized)For the Quarter Ended June 30, 20255.38 %10.49 %7.54 %For the Quarter Ended March 31, 202525.89 %11.19 %8.10 %For the Quarter Ended December 31, 2024(22.27)%10.52 %7.16 %For the Quarter Ended September 30, 202420.30 %10.64 %6.79 %For the Quarter Ended June 30, 20248.57 %11.06 %7.08 %

Return on average equity was 5.38% for the quarter ended June 30, 2025, as compared to 25.89% for the quarter ended March 31, 2025. This decrease was primarily driven by lower mark to market gains on our investment portfolio. Economic net interest income as a percentage of average equity decreased by 70 basis points for the quarter ended June 30, 2025 as compared to the quarter ended March 31, 2025. Earnings available for distribution as a percentage of average common equity decreased by 56 basis points for the quarter ended June 30, 2025, as compared to the quarter ended March 31, 2025, primarily driven by higher interest expense on secured financing agreements collateralized by Agency RMBS.

Financial Condition

Portfolio Review

During the six months ended June 30, 2025, we focused our efforts on taking advantage of relative value opportunities while simultaneously increasing our liquid securities allocation. During the six months ended June 30, 2025, on an aggregate basis