Company: CIMO
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023813
Chunk: 177

Company: CHIMERA INVESTMENT CORP
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 2
Chunk 177
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 net interest income as a percentage of the net average balance of our interest-earning assets less our interest-bearing liabilities, remained steady at 1.50% for the quarter ended March 31, 2025, as compared to the quarter ended December 31, 2024. Our Average net interest-earning assets remained relatively unchanged at $2.0 billion for the quarters ended March 31, 2025, and December 31, 2024 . Our net interest rate spread, which equals the yield on our average interest-earning assets less the economic average cost of funds, remained unchanged at 1.18 for the quarter ended March 31, 2025, as compared to the quarter ended December 31, 2024.

Quarter ended March 31, 2025 compared to the Quarter ended March 31, 2024

Our Economic net interest income (which is a non-GAAP measure, see “Economic net interest income” discussion earlier for details) increased by $4 million to $72 million for the quarter ended March 31, 2025 from $68 million for the quarter ended March 31, 2024. The net interest margin, which equals the Economic net interest income as a percentage of the net average balance of our interest-earning assets less our interest-bearing liabilities, increased by 20 basis points for the quarter ended March 31, 2025, as compared to the quarter ended March 31, 2024. Our Average net interest-earning assets decreased by $77 million to $2.0 billion for the quarter ended March 31, 2025, compared to $2.1 billion for the same period of 2024. Our net interest rate spread, which equals the yield on our average interest-earning assets less the economic average cost of funds, increased by 10 basis points for the quarter ended March 31, 2025, as compared to the quarters ended March 31, 2024. The increase in our net interest spread was primarily driven by higher interest income in our Agency RMBS portfolio due to Agency CMO and Agency Pass-through purchases.

56

Economic Interest Expense and the Cost of Funds

The borrowing rate at which we are able to finance our assets using secured financing agreements is typically correlated to SOFR and the term of the financing. The borrowing rate on the majority of our securitized debt is fixed and correlated to the term of the financing. The table below shows our average borrowed funds, Economic interest expense,