Chimera Investment Corporation Updates Status Of 10-Q Filing; Announces No Material Changes To Historical Financial Statements; No Impact On Taxable EPS And Dividends; September 30, 2011 GAAP Book Value Of $3.27
Chimera Investment Corporation (NYSE: CIM) announced today that it would delay the filing of its Form 10-Q for the period ended September 30, 2011.
As previously disclosed, on November 10, 2011, the Company, in conjunction with the review by its outside independent accounting firm, is conducting an analysis of the treatment under GAAP of other-than-temporary impairments (OTTI) related to the Company’s investments in securities rated less than AA, non-rated non-Agency securities and other subordinate securities. Prior to September 30, 2011, the Company evaluated certain of its investments in securities for OTTI under ASC 320 Investments-Debt and Equity Securities. The Company had determined that its investments in securities rated less than AA, as well as non-rated non-Agency securities and other subordinate securities, should be evaluated for impairment under ASC 325-40 Investments-Other – Beneficial Interest in Securitized Transactions.
While the Company has not completed its analysis, the Company expects that it will make immaterial adjustments to its historical financial statements in prior comparable periods. “It is important to recognize that the effect of this analysis will be a non-cash change in the GAAP accounting results of the Company that will not affect the Company’s previously announced GAAP or economic book values, actual cash flows, dividends and taxable income for any period,” said Matthew Lambiase, the Company’s chief executive officer. “Accordingly, the Company’s previously announced second quarter GAAP book value of $3.35 per share and economic book value of $3.08 per share will not change as a result of this analysis. We have determined that as of September 30, 2011, our GAAP and economic book value was $3.27 and $3.01 per share, respectively, and our taxable income for the third quarter was $0.13 per share. The Company’s dividend distributions are based on taxable income, not GAAP income, and the results of this analysis will have no impact on the Company’s prior or future dividend distributions.”
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