Sunday, November 15, 2015 11:02:27 PM
Nov 3 2015, 16:51 ET | About: Chimera Investment Corpo... (CIM) | By: Gaurav Batavia, SA News Editor
Chimera Investment (NYSE:CIM): Q3 EPS of $0.50 misses by $0.05.
Net interest income of $143.97M (-5.0% Y/Y) misses by $23.58M.
Press Release
seekingalpha.com/news/2890516-chimera-investment-misses-by-0_05-misses-on-net-interest-income?uprof=45#email_link
CHIMERA INVESTMENT CORPORATION RELEASES 3RD QUARTER 2015 EARNINGS
Tue November 3, 2015 4:45 PM|Business Wire | About: CIM
• CORE EARNINGS OF $98 MILLION OR $0.50 PER SHARE
• PURCHASED 16.6 MILLION OR 8% OF CHIMERAS OUTSTANDING SHARES FOR $231 MILLION OR $13.94 PER SHARE; A 17% DISCOUNT FROM Q2 2015 ENDING GAAP BOOK VALUE PER SHARE
• BECAME A MEMBER OF THE FEDERAL HOME LOAN BANK OF DES MOINES THROUGH WHOLLY-OWNED INSURANCE COMPANY
• GAAP BOOK VALUE OF $16.38 PER SHARE
• GAAP NET LOSS OF $48 MILLION OR $0.24 PER SHARE
NEW YORK--(BUSINESS WIRE)-- "Chimera had a number of positive advances in the third quarter. We made significant progress in our transition to a fully independent, internally managed mortgage REIT, repurchased $231 million of our stock and became a member of the Federal Home Loan Bank System. Chimera has also taken a number of steps to position our portfolio and balance sheet in light of the continuing volatility in the fixed income market. This includes lowering our interest rate risk by reducing our Agency portfolio by $2 billion earlier this year, increasing the notional balances of our interest rate swaps and extending the term of our non-agency financing. Given the current uncertainty around interest rates, we believe defending book value in the near term while creating an investor friendly operating structure will be the right path to maximizing value for our shareholders over the long term."
3rd Quarter 2015 Financial Results and Highlights
• Core earnings(1) of $0.50 per share down, from $0.53 earned in the 2nd quarter of 2015 and $0.56 earned in the 3rd quarter of 2014. Core earnings for the third quarter were based on 198 million average shares outstanding for the quarter compared to 189 million shares currently outstanding.
• Net interest income of $144 million, down from $150 million in the 2nd quarter of 2015 and $151 million in the 3rd quarter of 2014
• GAAP book value of $16.38 per share, down from $16.73 per share for the 2nd quarter of 2015 and down from $17.50 per share in the 3rd quarter of 2014
• Economic book value of $15.28 per share, down from $15.54 per share for the 2nd quarter of 2015 and $15.75 for the 3rd quarter of 2014
• Purchased 8% of Chimeras outstanding shares during the quarter which is expected to be beneficial to Chimeras shareholders in future quarters. • Purchased all shares held by Annaly, 4.4% of outstanding, for $14.05 per share.
• Open market purchases were executed at $13.81 per share for an average of $13.94 per share on all purchases.
• Exercised call right on Springleaf 2012-2 trust and securitized related mortgage loans in a new CIM 2015-3AG trust reducing financing costs from 4.1% to 2.2%. Incurred $2.4m of non-recurring deal expenses during the third quarter in relation to this transaction.
(1) Core earnings is a non-GAAP measure and is defined as GAAP net income (loss) excluding unrealized gains on the aggregate portfolio, impairment losses, realized gains on sales of investments, gain on deconsolidation, extinguishment of debt and certain other non-recurring gains or losses. Core earnings includes interest income and expense as well as realized gains or losses on derivatives used to hedge interest rate risk, including $9m of realized losses on treasury futures during the 3rd quarter of 2015. Core earnings is provided for purposes of comparability to other peer issuers, but has important limitations. Therefore, core earnings should not be viewed in isolation and is not a substitute for net income or net income per basic share computed in accordance with GAAP.
Gross asset yields were 8.3% on the residential mortgage credit portfolio and 2.8% on the Agency MBS portfolio. The net interest spread on the total portfolio was 3.4% and net interest margin was 4.0% reflecting total leverage of 3.8:1 and recourse at risk leverage of 2.5:1 at September 30, 2015.
The Company declared a common stock dividend of $0.48 per share for the quarter ended September 30, 2015. The annualized dividend yield on the Companys common stock for the quarter ended September 30, 2015 was 14%.
Other Information
Chimera Investment Corporation (CIM) invests in residential mortgage loans, residential mortgage-backed securities, real estate-related securities and various other asset classes. The Companys principal business objective is to generate income from the spread between yields on its investments and its cost of borrowing and hedging activities. The Company is a Maryland corporation that has elected to be taxed as a real estate investment trust (REIT).
Please visit www.chimerareit.com and click on Investor Relations for additional information about the Company.
More...
http://seekingalpha.com/pr/15223876-chimera-investment-corporation-releases-3rd-quarter-2015-earnings
Recent CIM News
- Chimera Investment Corporation Announces Closing of Public Offering of $74.75 Million Senior Notes • Business Wire • 08/19/2024 08:13:00 PM
- Chimera Investment Corporation Announces Pricing of Public Offering of Senior Notes • Business Wire • 08/12/2024 09:06:00 PM
- Chimera Declares Third Quarter 2024 Preferred Stock Dividends • Business Wire • 08/07/2024 10:45:00 AM
- CHIMERA INVESTMENT CORPORATION REPORTS 2ND QUARTER 2024 EARNINGS • Business Wire • 08/07/2024 10:45:00 AM
- Chimera Investment Corporation Sponsors Residential Mortgage Loan Securitization • Business Wire • 07/30/2024 08:30:00 PM
- Chimera Investment Corporation Announces Date of Second Quarter 2024 Financial Results and Conference Call • Business Wire • 07/25/2024 08:30:00 PM
- Chimera Increases Second Quarter 2024 Common Stock Dividends to $0.35 • Business Wire • 06/13/2024 08:15:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/22/2024 08:16:07 PM
- Chimera Investment Corporation Announces Closing of Public Offering of $65 Million Senior Notes • Business Wire • 05/22/2024 08:15:00 PM
- Form CERT - Certification by an exchange approving securities for listing • Edgar (US Regulatory) • 05/22/2024 12:59:12 PM
- Form 8-A12B - Registration of securities [Section 12(b)] • Edgar (US Regulatory) • 05/22/2024 12:39:27 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/21/2024 09:15:24 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/16/2024 08:31:01 PM
- Form 424B5 - Prospectus [Rule 424(b)(5)] • Edgar (US Regulatory) • 05/16/2024 08:22:32 PM
- Chimera Investment Corporation Announces Pricing of Public Offering of Senior Notes • Business Wire • 05/15/2024 09:15:00 PM
- Form FWP - Filing under Securities Act Rules 163/433 of free writing prospectuses • Edgar (US Regulatory) • 05/15/2024 09:02:55 PM
- Form 424B5 - Prospectus [Rule 424(b)(5)] • Edgar (US Regulatory) • 05/15/2024 01:42:06 PM
- Chimera Investment Corporation Announces 1-for-3 Reverse Stock Split • Business Wire • 05/10/2024 08:15:00 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/09/2024 08:28:26 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/09/2024 10:45:26 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/09/2024 10:45:22 AM
- Chimera Declares Second Quarter 2024 Preferred Stock Dividends • Business Wire • 05/09/2024 10:45:00 AM
- CHIMERA INVESTMENT CORPORATION REPORTS 1ST QUARTER 2024 EARNINGS • Business Wire • 05/09/2024 10:45:00 AM
- Chimera Investment Corporation Announces Date of First Quarter 2024 Financial Results and Conference Call • Business Wire • 04/24/2024 08:15:00 PM
- Chimera Declares First Quarter 2024 Common Stock Dividends • Business Wire • 03/28/2024 08:30:00 PM
FEATURED Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • Sep 18, 2024 10:29 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM
North Bay Resources Announces Mt. Vernon Gold Mine Bulk Sample, Sierra County, California • NBRI • Sep 11, 2024 9:15 AM
One World Products Issues Shareholder Update Letter • OWPC • Sep 11, 2024 7:27 AM