NEW YORK--(BUSINESS WIRE)--Chimera Investment Corporation (NYSE:CIM) today announced its financial results for the fourth quarter ended December 31, 2020. The Company’s GAAP net income for the fourth quarter was $129 million, or $0.49 per common share and net income was $15 million, or $0.07 for the full year ended December 31, 2020. Core earnings(1) for the fourth quarter and full year ended December 31, 2020 was $72 million, or $0.29 per common share and $334 million, or $1.46 per common share respectively.
“Chimera’s strategy of keeping its legacy assets generated a rebound in book value and economic returns of 22% since the middle of 2020. In addition, Chimera continues to use the securitization market for term financing its credit investments completing four separate transactions this quarter,” said Mohit Marria, Chimera’s CEO and Chief Investment Officer. “For the full year 2020, Chimera sponsored eleven securitizations totaling $4.2 billion and retained $655 million investment for our portfolio.”
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(1) Core earnings per adjusted diluted common share is a non-GAAP measure. See additional discussion on page 5. |
Other Information
Chimera Investment Corporation is a publicly traded real estate investment trust, or REIT, that is primarily engaged in the business of investing directly or indirectly through our subsidiaries, on a leveraged basis, in a diversified portfolio of mortgage assets, including residential mortgage loans, Non-Agency RMBS, Agency CMBS, Agency RMBS, and other real estate related securities.
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CHIMERA INVESTMENT CORPORATION |
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CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION |
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(dollars in thousands, except share and per share data) |
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(Unaudited) |
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December 31, 2020 |
December 31, 2019 |
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Cash and cash equivalents |
$ |
269,090 |
$ |
109,878 |
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Non-Agency RMBS, at fair value (net of allowance for credit losses of $180 thousand and $0 thousand, respectively) |
2,150,714 |
2,614,408 |
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Agency RMBS, at fair value |
90,738 |
6,490,293 |
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Agency CMBS, at fair value |
1,740,368 |
2,850,717 |
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Loans held for investment, at fair value |
13,112,129 |
14,292,815 |
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Receivable for investments sold |
— |
446,225 |
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Accrued interest receivable |
81,158 |
116,423 |
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Other assets |
78,822 |
194,301 |
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Derivatives, at fair value, net |
— |
3,611 |
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Total assets (1) |
$ |
17,523,019 |
$ |
27,118,671 |
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Liabilities: |
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Secured financing agreements ($6.7 billion and $15.4 billion pledged as collateral, respectively) |
$ |
4,636,847 |
$ |
13,427,545 |
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Securitized debt, collateralized by Non-Agency RMBS ($505 million and $598 million pledged as collateral, respectively) |
113,433 |
133,557 |
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Securitized debt at fair value, collateralized by loans held for investment ($12.4 billion and $12.1 billion pledged as collateral, respectively) |
8,711,677 |
8,179,608 |
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Long term debt |
51,623 |
— |
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Payable for investments purchased |
106,169 |
1,256,337 |
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Accrued interest payable |
40,950 |
63,600 |
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Dividends payable |
77,213 |
98,568 |
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Accounts payable and other liabilities |
5,721 |
6,163 |
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Total liabilities (1) |
$ |
13,743,633 |
$ |
23,165,378 |
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Stockholders' Equity: |
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Preferred Stock, par value of $0.01 per share, 100,000,000 shares authorized: |
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8.00% Series A cumulative redeemable: 5,800,000 shares issued and outstanding, respectively ($145,000 liquidation preference) |
$ |
58 |
$ |
58 |
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8.00% Series B cumulative redeemable: 13,000,000 shares issued and outstanding, respectively ($325,000 liquidation preference) |
130 |
130 |
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7.75% Series C cumulative redeemable: 10,400,000 shares issued and outstanding, respectively ($260,000 liquidation preference) |
104 |
104 |
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8.00% Series D cumulative redeemable: 8,000,000 shares issued and outstanding, respectively ($200,000 liquidation preference) |
80 |
80 |
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Common stock: par value $0.01 per share; 500,000,000 shares authorized, 230,556,760 and 187,226,081 shares issued and outstanding, respectively |
2,306 |
1,873 |
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Additional paid-in-capital |
4,538,029 |
4,275,963 |
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Accumulated other comprehensive income |
558,096 |
708,336 |
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Cumulative earnings |
3,881,894 |
3,793,040 |
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Cumulative distributions to stockholders |
(5,201,311) |
(4,826,291) |
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Total stockholders' equity |
$ |
3,779,386 |
$ |
3,953,293 |
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Total liabilities and stockholders' equity |
$ |
17,523,019 |
$ |
27,118,671 |
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(1) The Company's consolidated statements of financial condition include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations and liabilities of the VIE for which creditors do not have recourse to the primary beneficiary (Chimera Investment Corporation). As of December 31, 2020, and December 31, 2019, total assets of consolidated VIEs were $12,165,017 and $12,544,744, respectively, and total liabilities of consolidated VIEs were $8,063,110 and $8,064,235, respectively. |
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CHIMERA INVESTMENT CORPORATION |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
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(dollars in thousands, except share and per share data) |
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(Unaudited) |
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For the Year Ended |
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December 31, 2020 |
December 31, 2019 |
December 31, 2018 |
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Net interest income: |
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Interest income (1) |
$ |
1,030,250 |
$ |
1,361,110 |
$ |
1,273,316 |
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Interest expense (2) |
516,181 |
758,814 |
679,108 |
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Net interest income |
514,069 |
602,296 |
594,208 |
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Increase/(decrease) in provision for credit losses |
180 |
— |
$ |
— |
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Net other-than-temporary credit impairment losses |
— |
(4,853) |
(21,791) |
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Other investment gains (losses): |
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Net unrealized gains (losses) on derivatives |
201,000 |
(106,209) |
(141,162) |
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Realized gains (losses) on terminations of interest rate swaps |
(463,966) |
(359,726) |
— |
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Net realized gains (losses) on derivatives |
(41,086) |
(34,423) |
18,369 |
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Net gains (losses) on derivatives |
(304,052) |
(500,358) |
(122,793) |
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Net unrealized gains (losses) on financial instruments at fair value |
(110,664) |
409,634 |
46,632 |
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Net realized gains (losses) on sales of investments |
166,946 |
20,360 |
(2,743) |
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Gains (losses) on extinguishment of debt |
(54,418) |
9,318 |
26,376 |
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Total other gains (losses) |
(302,188) |
(61,046) |
(52,528) |
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Other expenses: |
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Compensation and benefits |
44,811 |
48,880 |
35,114 |
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General and administrative expenses |
25,346 |
26,555 |
22,664 |
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Servicing fees |
37,464 |
36,290 |
40,773 |
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Transaction expenses |
15,068 |
10,928 |
9,610 |
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Total other expenses |
122,689 |
122,653 |
108,161 |
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Income (loss) before income taxes |
89,012 |
413,744 |
411,728 |
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Income taxes |
158 |
193 |
91 |
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Net income (loss) |
$ |
88,854 |
$ |
413,551 |
$ |
411,637 |
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Dividends on preferred stock |
73,750 |
72,704 |
43,197 |
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Net income (loss) available to common shareholders |
$ |
15,104 |
$ |
340,847 |
$ |
368,440 |
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Net income (loss) per share available to common shareholders: |
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Basic |
$ |
0.07 |
$ |
1.82 |
$ |
1.97 |
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Diluted |
$ |
0.07 |
$ |
1.81 |
$ |
1.96 |
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Weighted average number of common shares outstanding: |
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Basic |
212,995,533 |
187,156,990 |
187,146,170 |
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Diluted |
226,438,341 |
188,406,444 |
187,748,862 |
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(1) Includes interest income of consolidated VIEs of $683,456, $780,746 and $904,830 for the years ended December 31, 2020, 2019 and 2018, respectively. <
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