Company: CIMO
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001409493-25-000028
Chunk: 22

Company: CHIMERA INVESTMENT CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 2
Chunk 22
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5 compared to the prior quarter. Our net interest rate spread, which equals the yield on our average interest-earning assets less the economic average cost of funds, decreased slightly to 1.4% for the quarter ended September 30, 2025, as compared to 1.5% the quarter ended June 30, 2025. 

Our Average net interest-earning assets decreased by $107 million to $1.7 billion for the quarter ended September 30, 2025, compared to $1.8 billion for the quarter ended June 30, 2025. Our 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 2.0% for the quarter ended September 30, 2025, as compared to 2.1% for the quarter ended June 30, 2025.

Nine months ended September 30, 2025 compared to the nine months ended September 30, 2024

Our Economic net interest income (which is a non-GAAP measure, see “Economic net interest income” discussion earlier for details) decreased by $2 million to $210 million for the nine months ended September 30, 2025 from $212 million for the nine months ended September 30, 2024. Our net interest rate spread, which equals the yield on our average interest-earning assets less the economic average cost of funds, remained relatively unchanged at 1.5% for the nine months ended September 30, 2025, and 2024, respectively.

64

Our Average net interest-earning assets decreased by $199 million to $1.8 billion for the nine months ended September 30, 2025, compared to $2.0 billion for the same period of 2024. Our net interest margin, which equals the yield on our average interest-earning assets less the economic average cost of funds, decreased by 20 basis points for the nine months ended September 30, 2025, as compared to the nine months ended September 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