Chimera Investment Reports GAAP Net Loss

By Tamara Parker • Wednesday, February 12 15:21 • Permanent Link

Chimera Investment Corporation (NYSE:CIM) has reported its financial results for the fourth quarter and full year ending December 31, 2024. The company announced a GAAP net loss of $2.04 per diluted common share for the fourth quarter of 2024, compared to a GAAP net income of $1.10 per diluted common share for the full year 2024. Similarly, earnings available for distribution per diluted common share stood at $0.37 for the fourth quarter, while it was $1.48 for the full year.

The company's GAAP book value per common share at December 31, 2024, was $19.72, reflecting an economic return of 4.40% for the year ended December 31, 2024.

In terms of the company's financial condition, it reported a decrease in cash and cash equivalents from $221,684 in December 31, 2023, to $83,998 in December 31, 2024. Additionally, the fair value of non-agency RMBS and agency MBS increased from $1,043,806 and $102,484, respectively, in December 31, 2023, to $1,064,169 and $519,218, respectively, in December 31, 2024. However, the fair value of loans held for investment decreased from $11,397,046 in December 31, 2023, to $11,196,678 in December 31, 2024.

Looking at the net income for the years ended December 31, 2024, and 2023, it increased from $126,104 in 2023 to $176,065 in 2024. The company reported net income (loss) available to common shareholders of $90,329 for 2024, compared to $52,354 for 2023. The weighted average number of common shares outstanding also increased from 76,685,785 in 2023 to 80,976,745 in 2024.

Earnings available for distribution, a non-GAAP measure, stood at $30,448 for the fourth quarter of 2024, showing consistent performance throughout the year with figures of $29,866, $30,308, and $30,564 in the previous quarters. These figures were slightly lower than the $30,735 reported in the fourth quarter of 2023.

In terms of the MBS portfolio, at December 31, 2024, the weighted average fair value of non-agency RMBS increased to $60.83 from $45.11, and the weighted average fair value of agency RMBS increased to $99.36 from $99.97, as compared to December 31, 2023.

Following these announcements, the company's shares moved -7.8%, and are now trading at a price of $13.92. For the full picture, make sure to review Chimera Investment's 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.