Company: CIMO
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001628280-25-038345
Chunk: 178

Company: CHIMERA INVESTMENT CORP
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 8
Chunk 178
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, 2025, as compared to the quarter ended March 31, 2025. 

Our Average net interest-earning assets decreased by $196 million to $1.8 billion for the quarter ended June 30, 2025, compared to $2.0 billion for the quarter ended March 31, 2025. Our net interest rate spread, which equals the yield on our average interest-earning assets less the economic average cost of funds, decreased by 20 basis points to 2.1% for the quarter ended June 30, 2025, as compared to 2.3% for the quarter ended March 31, 2025.

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

Our Economic net interest income (which is a non-GAAP measure, see “Economic net interest income” discussion earlier for details) increased by $1 million to $141 million for the six months ended June 30, 2025 from $140 million for the six months ended June 30, 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, decreased by 10 basis points to 2.1% for the six months ended June 30, 2025, as compared to 2.2% for the six months ended June 30, 2024. 

Our Average net interest-earning assets decreased by $142 million to $1.9 billion for the six months ended June 30, 2025, compared to $2.0 billion for the same period of 2024. Our net interest rate spread, which equals the yield on our average 

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interest-earning assets less the economic average cost of funds, decreased by 10 basis points for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024.

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, average cost of funds (inclusive of periodic interest on swaps and Swap futures), average one-month SOFR, average