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Chimera Investment Corporation Reports Estimated Taxable EPS For The 3rd Quarter 2011 Of $0.13; GAAP EPS Of $0.06

The Company will hold the third quarter 2011 earnings conference call Monday, November 21, 2011, at 10:00 a.m. EST. The number to call is 866-843-0890 for domestic calls and 412-317-9250 for international calls and the pass code is 2546625. The replay number is 877-344-7529 for domestic calls and 412-317-0088 for international calls and the pass code is 10005697. The replay is available for 48 hours after the earnings call. There will be a web cast of the call on www.chimerareit.com. If you would like to be added to the email distribution list, please visit www.chimerareit.com, click on Email Alerts, complete the email notification form and click the Submit button. For further information, please contact Investor Relations at 1-866-315-9930 or visit www.chimerareit.com.

This news release and our public documents to which we refer contain or incorporate by reference certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements which are based on various assumptions (some of which are beyond our control) may be identified by reference to a future period or periods or by the use of forward-looking terminology, such as “believe,” “expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,” “should,” “may,” “would,” “will” or similar expressions, or variations on those terms or the negative of those terms. Actual results could differ materially from those set forth in forward-looking statements due to a variety of factors, including, but not limited to, our business and investment strategy; our projected financial and operating results; our ability to maintain existing financing arrangements, obtain future financing arrangements and the terms of such arrangements; general volatility of the securities markets in which we invest; the implementation, timing and impact of, and changes to, various government programs, our expected investments; changes in the value of our investments; interest rate mismatches between our investments and our borrowings used to fund such purchases; changes in interest rates and mortgage prepayment rates; effects of interest rate caps on our adjustable-rate investments; rates of default or decreased recovery rates on our investments; prepayments of the mortgage and other loans underlying our mortgage-backed or other asset-backed securities; the degree to which our hedging strategies may or may not protect us from interest rate volatility; impact of and changes in governmental regulations, tax law and rates, accounting guidance, and similar matters; availability of investment opportunities in real estate-related and other securities; availability of qualified personnel; estimates relating to our ability to make distributions to our stockholders in the future; our understanding of our competition; market trends in our industry, interest rates, the debt securities markets or the general economy; our ability to maintain our exemption from registration under the Investment Company Act of 1940, as amended; and our ability to maintain our qualification as a REIT for federal income tax purposes. For a discussion of the risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in our Annual Report on Form 10-K, and any subsequent Quarterly Reports on Form 10-Q. We do not undertake, and specifically disclaim all obligations, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

               
CHIMERA INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(dollars in thousands, except share and per share data)
     
For the quarter ended
 

September 30, 2011

June 30, 2011

March 31, 2011

September 30, 2010
        (unaudited)     (unaudited)     (unaudited)     December 31, 2010     (unaudited)
Assets:                              
Cash and cash equivalents $ 9,824 $ 16,080 $ 16,295 $ 7,173 $ 11,949
Non-Agency RMBS, at fair value
Senior 321,483 347,900 329,782 987,685 1,065,145
Subordinated 2,074,409 2,173,005 2,266,560 2,210,858 1,866,911
Senior, non-retained 2,013,798 2,176,692 2,368,212 2,330,568 1,967,812
Agency RMBS, at fair value 4,952,721 5,013,760 4,879,382 2,133,584 1,884,193
Securitized loans held for investment, net of allowance for loan losses of $7.0 million $7.5 million, $8.0 million, $6.6 million, and $6.0 million, respectively 286,009 302,879 326,295 353,532 389,315
Receivable for investments sold - - 6,192 - -
Accrued interest receivable 55,539 57,946 58,570 49,088 47,767
Other assets 422 847 1,270 1,212 360
Interest rate swaps, at fair value       -         -         5,876         -         -  
Total assets     $ 9,714,205       $ 10,089,109       $ 10,258,434       $ 8,073,700       $ 7,233,452  
 
Liabilities:
Repurchase agreements, Agency RMBS $ 4,171,190 $ 4,320,487 $ 3,870,407 $ 1,600,078 $ 1,568,223
Repurchase agreements, non-Agency RMBS - - - 208,719 -
Securitized debt, loans held for investment 230,767 245,984 266,363 289,236 320,552
Securitized debt, non-Agency RMBS, non-retained 1,753,228 1,904,936 2,091,371 1,956,079 1,955,665
Payable for investments purchased - - 311,610 127,693 279,649
Accrued interest payable 11,538 11,529 12,543 11,641 11,164
Dividends payable 133,443 133,425 143,676 174,445 158,811
Accounts payable and other liabilities 1,583 1,355 1,234 393 810
Investment management fees payable to affiliate 13,417 13,196 12,807 12,422 11,411
Interest rate swaps, at fair value       44,970         19,658         6,033         9,988         24,820  
Total liabilities     $ 6,360,136       $ 6,650,570       $ 6,716,044       $ 4,390,694       $ 4,331,105  
 
Stockholders' Equity:
Common stock: par value $0.01 per share; 1,500,000,000 shares authorized, 1,027,246,793, 1,027,167,395, 1,027,107,362, 1,027,034,357, and 883,169,403 shares issued and outstanding, respectively $ 10,264 $ 10,263 $ 10,262 $ 10,261 $ 8,822
Additional paid-in-capital 3,603,040 3,602,671 3,602,339 3,601,890 3,056,659
Accumulated other comprehensive income (loss) 29,972 47,253 152,540 321,537 49,480
Retained earnings (accumulated deficit)       (289,207 )       (221,648 )       (222,751 )       (250,682 )       (212,614 )
Total stockholders' equity     $ 3,354,069       $ 3,438,539       $ 3,542,390       $ 3,683,006       $ 2,902,347  
Total liabilities and stockholders' equity     $ 9,714,205       $ 10,089,109       $ 10,258,434       $ 8,073,700       $ 7,233,452  

                   
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(dollars in thousands, except share and per share data)
(unaudited)
 
For the quarter ended
 
September 30,

June 30,

March 31, December 31, September 30,
      2011    

2011

    2011     2010     2010
Net Interest Income:
Interest income $ 177,640 $ 208,803 $ 214,133 $ 160,550 $ 139,683
Interest expense 7,217 7,481 8,002 9,480 8,034
 
Interest income, non-retained 35,030 38,415 34,124 31,018 55,088
Interest expense, non-retained       25,575         28,312         27,575         27,573         32,237  
Net interest income (expense)       179,878         211,425         212,680         154,515         154,500  
Other-than-temporary impairments:
Total other-than-temporary impairment losses (249,257 ) (114,592 ) (69,124 ) (36,017 ) (51,922 )
Non-credit portion of loss recognized in other comprehensive income (loss)       208,081         83,639         35,749         12,202         42,112  
Net other-than-temporary credit impairment losses       (41,176 )       (30,953 )       (33,375 )       (23,815 )       (9,810 )
Other gains (losses):
Unrealized gains (losses) on interest rate swaps (25,312 ) (19,500 ) 9,831 14,831 (13,583 )
Realized gains (losses) on interest rate swaps       (4,500 )       (4,297 )       (2,847 )       (2,596 )       (2,493 )
Gains (losses) on interest rate swaps       (29,812 )       (23,797 )       6,984         12,235         (16,076 )
Net gains (losses) on interest-only RMBS 52 (4,442 ) - - -
Net gains (losses) on embedded derivatives in interest-only RMBS (28,175 ) (2,234 ) - - -
Realized gains (losses) on sales of investments, net       28         (381 )       1,695         7,899         2,032  
Total other gains (losses)       (57,907 )       (30,854 )       8,679         20,134         (14,044 )
Net investment income (loss)       80,795         149,618         187,984         150,834         130,646  
Other expenses:
Management fee 13,252 13,152 12,750 12,229 11,318
Provision for loan losses - - 1,442 577 482
General and administrative expenses       1,830         1,820         1,487         1,648         1,798  
Total other expenses       15,082         14,972         15,679         14,454         13,598  
Income (loss) before income taxes 65,713 134,646 172,305 136,380 117,048
Income taxes       (171 )       118         698         3         752  
Net income (loss)     $ 65,884       $ 134,528       $ 171,607       $ 136,377       $ 116,296  
 
Net income (loss) per share-basic and diluted     $ 0.06       $ 0.13       $ 0.17       $ 0.14       $ 0.13  
Weighted average number of shares outstanding-basic and diluted       1,027,195,404         1,027,130,496         1,027,063,055         967,544,377         883,147,726  
Comprehensive income (loss):
Net income (loss)     $ 65,884       $ 134,528       $ 171,607       $ 136,377       $ 116,296  
Other comprehensive income (loss):
Unrealized gains (losses) on available-for-sale securities, net (58,429 ) (136,621 ) (200,677 ) 256,141 24,132
Reclassification adjustment for net losses included in net income (loss) for other-than-temporary credit impairment losses 41,176 30,953 33,375 23,815 9,810
Reclassification adjustment for net realized losses (gains) included in net income (loss)       (28 )       381         (1,695 )       (7,899 )       (2,032 )
Other comprehensive income (loss)       (17,281 )       (105,287 )       (168,997 )       272,057         31,910  
Comprehensive income (loss)     $ 48,603       $ 29,241       $ 2,610       $ 408,434       $ 148,206  

       
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(dollars in thousands, except share and per share data)
(unaudited)
 
For the nine months ended
 
      September 30, 2011     September 30, 2010
Net Interest Income:
Interest income $ 600,576 $ 401,929
Interest expense 22,700 21,907
 
Interest income, non-retained 107,569 169,723
Interest expense, non-retained       81,462         87,488  
Net interest income (expense)       603,983         462,257  
Other-than-temporary impairments:
Total other-than-temporary impairment losses (432,973 ) (135,136 )
Non-credit portion of loss recognized in other comprehensive income (loss)       327,469         84,032  
Net other-than-temporary credit impairment losses       (105,504 )       (51,104 )
Other gains (losses):
Unrealized gains (losses) on interest rate swaps (34,981 ) (24,820 )
Realized gains (losses) on interest rate swaps       (11,644 )       (3,192 )
Gains (losses) on interest rate swaps       (46,625 )       (28,012 )
Net gains (losses) on interest-only RMBS (4,390 ) -
Net gains (losses) on embedded derivatives in interest-only RMBS (30,409 ) -
Realized gains (losses) on sales of investments, net       1,342         2,374  
Total other gains (losses)       (80,082 )       (25,638 )
Net investment income (loss)       418,397         385,515  
Other expenses:
Management fee 39,154 28,695
Provision for loan losses 1,442 2,112
General and administrative expenses       5,137         4,367  
Total other expenses       45,733         35,174  
Income (loss) before income taxes 372,664 350,341
Income taxes       645         753  
Net income (loss)     $ 372,019       $ 349,588  
 
Net income (loss) per share-basic and diluted     $ 0.36       $ 0.45  
Weighted average number of shares outstanding-basic and diluted       1,027,130,136         773,777,431  
Comprehensive income (loss):
Net income (loss)     $ 372,019       $ 349,588  
Other comprehensive income (loss):
Unrealized gains (losses) on available-for-sale securities, net (395,727 ) 100,504
Reclassification adjustment for net losses included in net income (loss) for other-than-temporary credit impairment losses 105,504 51,104
Reclassification adjustment for net realized losses (gains) included in net income (loss)       (1,342 )       (2,374 )
Other comprehensive income (loss)       (291,565 )       149,234  
Comprehensive income (loss)     $ 80,454       $ 498,822  




Stock quotes in this article: CIM 

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