Company: CIMO
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001628280-25-038345
Chunk: 172

Company: CHIMERA INVESTMENT CORP
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 8
Chunk 172
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 unrealized gains on financial instruments at fair value of $48 million and an increase in investment management and advisory fees of $18 million. This increase was offset in part by a decrease on net gains on derivatives of $30 million, an increase in transaction expense of $6 million due to higher securitization activity, and an increase in compensation expense of $9 million due to an increase in overall employee headcount and additional compensation expense related to the Palisades Acquisition during the six months ended June 30, 2025, as compared to the six months ended June 30, 2024.

Interest Income 

Quarter ended June 30, 2025 compared to the quarter ended March 31, 2025

Interest income increased by approximately $10 million or 5.1%, to $201 million for the quarter ended June 30, 2025, as compared to $191 million for the quarter ended March 31, 2025. The increase in our interest income during the quarter ended June 30, 2025 was primarily driven by our Agency RMBS purchases as we took advantage of relative value opportunities and increased our liquid security allocation, as compared to the previous quarter. During the quarter ended June 30, 2025, the interest income on our Agency RMBS portfolio increased by $12 million as compared to the quarter ended March 31, 2025 driven by our Agency Pass-through purchases, which was partially offset by a decrease of $3 million on our Loans held for investment  portfolio due to lower loan balances.

Six Months Ended June 30, 2025 compared to the six months ended June 30, 2024

Interest income increased by $19 million, or 5.0%, to $392 million for the six months ended June 30, 2025 as compared to $373 million, for the six months ended June 30, 2024. This increase was primarily driven by our Agency CMO and Agency Pass-through purchases during the period. During the six months ended June 30, 2025, the interest income on our Agency RMBS portfolio increased by $24 million driven by these purchases as compared to the six months ended June 30, 2024. The increase in interest income is offset by a decreases in income on our Non-agency RMBS and Loans held for investment portfolios of $3 million and $1 million, respectively, due to declining asset balances.

53

Interest Expense

Quarter ended June 30, 2025 compared to