Company: CIMO
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001628280-25-038345
Chunk: 26

Company: CHIMERA INVESTMENT CORP
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 2
Chunk 26
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 March 31, 2025, respectively. Compensation and benefits costs were approximately $25 million and $16 million for the six months ended June 30, 2025 and June 30, 2024. The decrease in Compensation and benefits costs for the quarter ended June 30, 2025 compared to the quarter ended March 31, 2025, was primarily due to the first quarter expense including fully accelerated long-term stock incentive awards for the retirement eligible employees. The increase in Compensation and benefits costs for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, was driven by higher overall compensation expense related to the increase in employee headcount and Palisades Acquisition. 

The general and administrative expenses remained unchanged at $7 million for the quarters ended June 30, 2025 and March 31, 2025, respectively. G&A expenses were approximately $14 million and $12 million for the six months ended June 30, 2025 and June 30, 2024. G&A expenses are primarily comprised of legal, market data and research, auditing, consulting, information technology, rent and independent investment consulting expenses.

60

During the quarter ended June 30, 2025, we incurred transaction expenses of $390 thousand in relation to the HomeXpress Acquisition. During the quarter ended March 31, 2025, we incurred transaction expenses of $6 million due to securitizations. 

Servicing and Asset Manager Fee Expense

Servicing fees and asset manager expenses remained relatively unchanged at $7 million for the quarters ended June 30, 2025 and March 31, 2025, respectively. Servicing fees and asset manager expenses remained relatively unchanged at $15 million for the six months ended June 30, 2025 and June 30, 2024, respectively. These servicing fees are primarily related to the servicing costs of the whole loans held in consolidated securitization vehicles and are paid from interest income earned by the VIEs. Servicing fees generally ranged from 2 to 50 basis points of unpaid principal balances of our consolidated VIEs.

Amortization of intangibles and depreciation expenses

We recognized intangible assets related to investment management agreements and developed technology acquired in the transaction. The long-lived fixed assets are comprised of leasehold improvements, furniture and fixtures, and computers. The fixed assets and intangible assets are depreciated or amortized over their estimated useful lives.