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Chimera Investment (NYSE:CIM) Q4 earnings fell short of the average analyst estimate as interest rates remained elevated during the quarter, reducing the value of its mortgage-backed securities holdings. As a result, its GAAP book value declined.
Q4 earnings available for distribution per share of $0.13, missing the average analyst estimate of $0.17, stayed even with $0.13 in Q3 and increased from $0.11 in Q4 2022.
Chimera stock slipped 0.9% in Wednesday premarket trading.
Net interest income of $64.7M climbed from $63.4M in the prior quarter.
Its increase in provision for credit losses was $2.33M, down from $3.22M in Q3.
GAAP book value of $6.75 per common share slipped from $6.90 at Sept. 30.
Its assets’ total average balance for the quarter ended Dec. 31, 2023 was $13.0B vs. $13.3B for the quarter ended Sept. 30, 2023. Non-agency RMBS average balance was $950M in Q4 vs. $961M in Q3.
Economic net interest income/net interest rate spread was 1.5% in Q4 vs. 1.3% in Q3 and 1.6% in Q4 2022.
During the year, Chimera (CIM) lowered its recourse debt by $1.0B and “took advantage of our ability to re-lever our existing securitizations and to access the capital markets to acquire new assets,” said CEO Phillip J. Kardis. “We believe that lowering our recourse debt and acquiring high-yielding assets will benefit our shareholders over the long run.”
Earlier, Chimera Investment non-GAAP EPS of $0.13 misses by $0.04
